DSBD Portfolio Audit Outcomes; DSBD, SEFA and SEDA 2023/24 Annual Reports; with Ministry

Video Small Business Development Small Enterprise Development Agency (SEDA) Small Enterprise Finance Agency (SEFA) In a virtual meeting, the Committee received a briefing by the Auditor-General of South Africa on the 2023/24 annual performance and financial information of the Department of Small Business Development (DSBD) and its entities. The DSBD and its entities also briefed the Committee on their performance. Ms Stella Ndabeni-Abrahams, Minister of Small Business Development, said that the DSBD had ended the Sixth Parliament on a very good footing, having created the broad policy and strategic frameworks to begin unlocking the economic potential of small enterprises in the country. This included the completion of the country's third iteration of the SMME strategy – referred to as the National Integrated Small Enterprise Development (NISED) Strategic Framework, with all critical stakeholders in the small enterprise ecosystem supported. DSBD maintained an unqualified audit opinion with no findings. DSBD achieved 85% of its targets and spent 98.2% of its final budget. The Small Enterprise Development Agency (SEDA) and Small Enterprise Finance Agency (SEFA) obtained unqualified audit opinions with findings. SEDA achieved 100% of its targets for the 2023/24 financial year. SEDA had supported a total of 94 584 SMMEs and cooperatives during the period under review. SEFA achieved 30% of its targets for the 2023/24 financial year while spending 88% of the budget allocated. The non-achievement of targets was largely due to capacity constraints. However, SEFA had exceeded its target for the number of SMMEs and cooperatives financed, as well as the number of jobs facilitated and sustained. 80 040 SMMEs were financed, and 98 378 jobs were facilitated. While the Committee was pleased with the audit outcomes for DSBD and its entities, the Committee also emphasised that a clean audit should result in a meaningful impact on the ground. The Committee raised questions around the underspending across the Department and its entities, high vacancy rates, and underperformance of certain targets. It also raised questions on whether there were efforts to assist those who struggled to meet the criteria and qualify for assistance or access to services and funding. The Committee also raised particular concerns about discrepancies it had observed during its oversight visit to the Northern Cape. For instance, there was a speculation that the equipment handed over to informal traders did not amount to the stated value. The Chairperson said that it was important that SEDA provide equal support across all provinces.