Driving economic growth: Government’s commitment to MSMEs
The Economic Reconstruction and Recovery Plan (ERRP) is here to empower MSMEs with the support and resources they need to flourish.
The South African government has revealed that it is dedicated to uplifting micro, small, and medium enterprises (MSMEs) as a cornerstone of economic recovery and growth. With a focus on inclusivity and sustainability, the Economic Reconstruction and Recovery Plan (ERRP) introduces a suite of programmes tailored to empower small businesses and co-operatives across the country.
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In an interview with SAnews, Government Communication and Information System (GCIS) Acting Director-General (Acting DG), Nomonde Mnukwa, emphasised the deliberate steps the government has taken to foster the development of MSMEs, and the wide range of programmes and initiatives aimed at empowering small businesses, co-operatives, and informal enterprises.
She highlighted that the government’s support for small businesses is rooted in their significant contribution to the economy and the livelihoods of citizens.
The National Development Plan places the responsibility of creating 90% of new jobs in the workforce in South Africa on the MSMEs.
“Government is very deliberate about providing targeted support to small businesses, including co-operatives, micro-enterprises, and informal businesses because we know that they are a major source of employment and a key contributor to inclusive growth,” she explained.
“MSMEs not only help put food on the table for many households but, when they grow, they also create jobs, helping to reduce unemployment.”
Recognising the success of many economies around the world that thrive on robust MSME sectors, Mnukwa said the government has taken a similar approach by establishing a dedicated Department of Small Business Development.
She added that the government’s commitment extends beyond national programmes, with provincial and municipal structures playing a key role in ensuring that MSMEs receive the necessary support to incubate growth and sustain themselves.
“Provincial departments bridge a gap by assisting MSMEs in areas not reached by national programmes. Additionally, local municipalities have established Local Economic Development units to offer financial aid and guidance at a community level.
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“The three spheres of government work together to ensure comprehensive coverage, extending their reach to support as many small businesses as possible across the country,” she said.
The government’s MSMEs strategy, the National Integrated Small Enterprise Development Framework (NISED), is also designed to address inequalities. The 6th Parliament also passed the National Small Enterprise Amendment Bill which was signed into law by the President to advocate for the interests of small enterprises.
“There are special programmes specifically aimed at previously disadvantaged groups, as well as businesses operating in rural or township areas, to tackle both unemployment and inequality,” she said.
Youth and women empowerment
The Acting DG also stressed the importance of empowering the youth and women within the MSME space.The National Youth Development Agency – located in the Presidency – plays a pivotal role in supporting young entrepreneurs by offering both financial support and training to equip them with the skills to manage their businesses effectively.
In addition, the SheTrades programme provides vital support to women-owned businesses, enabling them to access both domestic and international markets. The programme assists women entrepreneurs with certifications, product listings at major retailers like Clicks, Dis-Chem, and Pick n Pay, and opens doors to new trading opportunities.
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This article is sponsored by the Government Communication and Information System (GCIS).
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