DSBD, SEFA & SEDA Q1 2024/25 Performance; with Deputy Minister

The Portfolio Committee on Small Business Development convened to receive briefings from the Department of Small Business Development (DSBD), the Small Enterprise Finance Agency (SEFA), and the Small Enterprise Development Agency (SEDA) regarding their quarter one performance reports. The Deputy Minister highlighted the adverse effects of economic instability on employment, particularly in the SMME sector and emphasised the necessity for robust support mechanisms. The DSBD reported achieving 91% of its performance targets for the quarter, successfully supporting over 13 000 SMMEs, and achieving timely payments for invoices. The Department noted setbacks in the Red-Tape Reduction Awareness Programme and financial support for co-operatives with plans in place to address these under-performance. SEDA outlined that the agency met 86.67% of its quarterly targets and excelled in entrepreneurship support and job creation but was facing challenges in local market linkages. Committee Members expressed concern regarding the effectiveness of the Red-Tape Reduction Framework, the need for clearer job creation targets, and the high interest rates charged by financial intermediaries. There were also discussions on improving outreach to marginalised groups, particularly people with disabilities. The Committee emphasised the importance of ensuring South African-qualified individuals are appointed to key positions within the Agencies to enhance governance and operational effectiveness.