DSBD & SEDFA 2024/25 Annual Reports; with Minister and Deputy Minister

Video Annual Reports 2024/25 The Portfolio Committee convened to review the annual reports of the Department of Small Business Development (DSBD) and its newly consolidated Agency, the Small Enterprise Development and Finance Agency (SEDFA), for the 2024/25 financial year. The Department reported a strong performance. It had achieved 30 of its 34 targets, representing an 88 per cent achievement rate, and had received an unqualified audit opinion. Key highlights included supporting over 43 000 youth start-ups and 58 000 competitive micro, small and medium enterprises, alongside maintaining sound financial management and governance structures. However, concerns were raised by Committee Members regarding a high staff vacancy rate, the measurable impact of interventions beyond numerical targets, and underperformance in areas such as finalising strategic partnerships and business infrastructure projects. The newly formed SEDFA, established from a merger of three predecessor entities, presented its first annual report, detailing the challenges of the institutional consolidation. It reported substantial operational outputs, including providing non-financial support to over 70 000 enterprises, and financial assistance totaling R3.3 billion to more than 165 000 entities. While it had also received an unqualified audit, Members questioned the verification of reported job creation figures, expressed concern over the number of senior staff in acting positions, and sought clarity on the management of specific funds, including the Tourism Equity Fund and the Agency's underperforming property portfolio. In their responses, the departmental and Agency leadership outlined remedial measures being implemented. These included efforts to fill critical vacancies, the automation of application systems to reduce processing delays, the development of strategies to address red tape, and ongoing work to establish a Co-operative Tribunal. The Deputy Minister concluded that it had been a year of consolidation and reform, expressing confidence in the leadership's commitment to addressing the identified gaps with the Committee's continued oversight.