DSBD & SEDFA 2025/26 Quarter 1 Performance Reports; with Minister and Deputy Minister

Video The Portfolio Committee on Small Business Development convened to receive the first quarter performance reports for the 2025/26 financial year from the Department of Small Business Development (DSBD) and its entity, the Small Enterprise Development and Finance Agency (SEDFA). The Deputy Minister delivered opening remarks, acknowledging the Committee's oversight and emphasising the Department's commitment to supporting small businesses and cooperatives as key drivers of inclusive growth and job creation. The Department reported achieving 90% of its targets for the quarter. Key accomplishments included the successful rollout of financial and non-financial support to small enterprises, linking 80 small, medium and micro enterprises (SMMEs) products to domestic markets, and exposing 36 SMMEs to global market opportunities. The Department had also spent R755.8 million against its projection of R735.4 million, and had paid all valid supplier invoices within 30 days. While most areas showed progress, delays were noted in the finalisation of the Business Licensing Bill and the implementation of the Asset Assist Programme, with corrective measures reported to be underway. In contrast, SEDFA’s performance was reported at 52% for the first quarter, which was acknowledged as being below expectations. The entity attributed this to challenging economic conditions and internal transitional challenges as it aligned with a new strategy. However, it was noted that significant financial support had been injected into the economy, with over R675 million disbursed, largely benefiting black-owned, women-owned, and youth-owned enterprises. The entity’s leadership assured the Committee that performance had already improved to 71% in the second quarter due to implemented corrective actions and strengthened internal processes. During the discussion, Committee Members raised several concerns. These included queries about the tangible economic impact of the reported activities, the slow progress in supporting cooperatives, inefficiencies in SEDFA’s service turnaround times, and the need for more detailed reporting on job creation and the sustainability of supported businesses. In response, the Department and SEDFA provided clarifications on their strategic interventions, steps to address audit findings, and efforts to streamline processes. The Deputy Minister concluded by thanking the Committee for its feedback, and reaffirmed the Department’s commitment to transparency and improving programme delivery for small businesses across South Africa.