National Planning Commission on SMME Advisory Notice; DSBD BRRR; with Minister

Video Budgetary Review & Recommendations Reports BRRR The Portfolio Committee convened to consider the Department of Small Business Development's (DSBD's) Budgetary Review and Recommendation Report (BRRR), and to receive a briefing from the National Planning Commission (NPC) on its advisory notice regarding micro, small and medium enterprises (MSMEs). The Committee’s Content Advisor presented the draft BRRR, which reflected on the performances of the DSBD and the Small Enterprise Development and Finance Agency (SEDFA). He reported that the Department had achieved 88% of its performance targets and spent 98% of its budget, while the SEDFA had achieved 72% of its targets. Both had received positive audit outcomes, but concerns had been raised about persistent underspending linked to high vacancy rates, slow recruitment, and weaknesses in project monitoring and provincial partnerships. The Committee subsequently adopted the BRRR, with recommendations including the urgent filling of vacancies, the fast-tracking of the Business Licensing Bill, strengthening project monitoring using global positioning system (GPS) data, and improving partnerships with educational institutions to address skills gaps. During the discussion on the BRRR, several proposals were made to strengthen the recommendations. It was suggested that the SEDFA should be developed into a central one-stop shop for all small business support, and that all related budgets across government should be consolidated under it to improve coordination. A strong emphasis was placed on the need for a Red Tape Reform Bill, with a recommendation that the Committee should consider initiating its own Committee Bill if the Department did not act. Members also called for enhanced consequence management for officials who failed to meet targets, and for stronger measures to address all instances of irregular expenditure. The NPC stressed that the absence of a single law to reduce red tape had resulted in complex, overlapping regulations that were particularly burdensome for small businesses. Its briefing cited a study quantifying the significant cost of compliance for businesses, and noted that digitalisation efforts remained inefficient. Examples of good practice, such as reduced licence processing times, and the Companies and Intellectual Property Commission’s (CIPC) BizPortal, were shared. The Committee was informed that a red tape reduction tracker was being developed to monitor interventions and outcomes. Members expressed strong support for the creation of an ad hoc parliamentary committee to develop a political framework for addressing red tape across departments, arguing that this was a political issue requiring cross-party commitment. The need to use internationally recognised models to assess the cost of red tape and to simplify tax regimes for small businesses was also emphasised. In response, the NPC Commissioners acknowledged the inputs, and suggested that a more coordinated effort was needed, particularly in data collection for the informal sector. They indicated that the Presidency might be the appropriate entity to lead the proposed legislation on red tape reduction, as it required coordination across all departments. The Minister confirmed that a meeting had been held with the DSBD to discuss the NPC’s advisory, and to develop an implementation plan. The government would consolidate tracking systems and strengthen the Department's capacity to drive red tape reduction initiatives. She emphasised that a well-coordinated framework was essential to define responsibilities and monitor progress, and that regulation was necessary but should not stifle the economy.