Latest news with #SMMEs
News24
5 days ago
- Business
- News24
Mashatile calls for global reforms: ‘Small businesses need capital, not promises'
Supplied Mashatile says small, medium and micro enterprises cannot thrive without urgent reforms to unlock capital, trade access and digital opportunities. Africa receives less than 2% of global start-up capital, despite being home to 18% of the world's population. The Global SME Ministerial Meeting's outcomes will feed into SA's G20 presidency and inform global policies. Deputy President Paul Mashatile has called for urgent global reforms to unlock funding and break down barriers facing small businesses, warning that promises without capital are leaving entrepreneurs, especially in the Global South, behind. Speaking at the inaugural Global SME Ministerial Meeting in Boksburg, at the Birchwood Conference Centre on Thursday, Mashatile warned that, despite being the backbone of most economies, small, medium and micro enterprises (SMMEs) are still shut out of capital, trade and innovation, with profound consequences for global development. 'This inaugural Global SME Ministerial Meeting could not have come at a better time,' Mashatile said. 'The discussions and exchanges held in recent days have been filled with pride and optimism, as they highlight our shared commitment to enhancing access to finance, promoting digital transformation and promoting green transitions in the SME sector.' Mashatile said the outcomes of the ministerial meeting would feed directly into SA's G20 presidency, which is themed Solidarity, Equality, Sustainability and is committed to championing developmental issues in the Global South. Africa shut out of global capital One of the most urgent challenges, Mashatile said, was that Africa, home to over 18% of the world's population, received just over 3% of global foreign direct investment and less than 2% of global start-up capital. 'Where we can access capital, it comes at a cost and is often costed in foreign currency, which triggers inflation when there is local currency devaluation,' he warned. 'This scenario is a reality for a significant number of the countries that have convened here.' The ministerial meeting explored ways to derisk SME investment, including better public-private collaboration, increased state guarantees and reforms to credit rating systems that rely less on traditional collateral. We must also be realistic about the obstacles we confront and how to overcome them. The reality is that we will not be able to industrialise and strengthen inclusivity through SMMEs without capital. Paul Mashatile He highlighted SA's new R100 billion transformation fund launched in May, as a flagship effort to support SMMEs, especially those led by youth, women and entrepreneurs in underserved areas, with both funding and pre-investment capacity-building. 'We are deliberate about pre-investment support to build the necessary pipeline of compliant and market-ready SMMEs.' READ: Mashatile dodges claims, Mantashe warns looters as ANC pledges to rebuild its image Digitisation must not deepen inequality Mashatile welcomed the rapid expansion of fintech platforms, saying they are already improving access to finance and streamlining turnaround times for applications through institutions such as SA's Small Enterprise Development and Finance Agency. But he cautioned that digitisation comes with new risks. Digital platforms have also become key to market access through e-commerce platforms, although these also bring in cheap products which crowd out locally produced goods. A phenomenon that needs to be managed. Paul Mashatile He warned that technology was increasingly 'intertwined with trade protectionism' and may widen the digital divide if countries do not invest aggressively in skills, infrastructure and local innovation ecosystems. 'Minister [of small business development Stella] Ndabeni frequently tells us that we must not simply become consumers of technologies developed elsewhere. We must build our own capabilities wherever we are.' Green economy must include SMMEs Mashatile also highlighted the importance of a just transition that included the SMMEs in the green economy. 'As we focus on new markets and trade agreements, we must prioritise local value creation and expand local supply chain opportunities for our SMMEs,' he said. 'This can be achieved by ensuring that the green economy transition is supported by clear green industrialisation policies.' He said the ministerial meeting had made important progress in identifying best practices and policies to ensure MSMEs could benefit from green growth. Trade must be unlocked – regionally and globally Mashatile said the ability of the SMEs to grow and create jobs was being stifled by cross-border trade and regulatory bottlenecks that must be urgently addressed. He reaffirmed South Africa's commitment to regional integration, including through the Southern African Customs Union, the Southern African Development Community and the African Continental Free Trade Area (AfCFTA) Agreement. 'The free trade area agreement is a significant achievement in creating the world's largest free trade area and unlocking the economic potential of an integrated African market,' Mashatile said. 'It promotes trade, investment and growth, fostering business growth and creating opportunities for young entrepreneurs.' The AfCFTA could be a powerful lever for economic justice and youth empowerment, he added – but only if countries do more to remove practical barriers to access and investment. A direct line to the G20 Mashatile said one of the most important outcomes of the week's engagement was the direct link between the SME forum and South Africa's upcoming G20 Leaders' Summit in November, which it will host for the first time. 'As we approach the G20 summit, this forum has been essential in bringing together several ministers and deputy ministers from the continent and the Global South to exchange perspectives. 'We have heard your voices and will ensure that we champion the issues you have raised in the broader G20 processes.' He praised Ndabeni for 'igniting a spark' by pushing for a dedicated G20 Working Group on Small Business and Startups, which was launched under Brazil's presidency and gained momentum through this ministerial meeting. He also welcomed the Startup20 Engagement Group's mid-term meeting, which took place on the sidelines of the ministerial gathering, saying it provided a crucial platform to align entrepreneurship policy at the highest levels. 'We look forward to the Startup20 Summit on 13 and 14 November, where practical policy measures will be announced.' READ: Watch | Paul Mashatile defends spending R7.3m on overseas trips: 'We're not being extravagant' A call to act, not just reflect Mashatile also called on all delegates to take the lessons from the ministerial meeting back to their home countries. 'This Global SME Ministerial Meeting has provided a critical platform for SMME leaders across more than 50 countries to engage and share policy thoughts and best practice,' he said. It has given us well-considered policy content on SMEs and start-ups to take into the G20 Leaders' Summit. Paul Mashatile He added: 'As we move forward, it is essential to remember that exploring new business opportunities demands access to finance, digital connectivity, adaptability and a willingness to embrace change.' The department of small business development, in partnership with the International Trade Centre, hosted the ministerial meeting this week. The event was held under the theme Navigating New Business Frontiers and brought together participants that included representatives and ministers from more than 62 countries, entrepreneurs, innovators and global leaders.
Zawya
16-07-2025
- Business
- Zawya
South Africa: US tariffs threaten SMME exports, says ETTP
South African small businesses could face a major blow after the United States confirmed a 30% tariff on all local goods from 1 August 2025. Entrepreneurship to the Point (ETTP) is calling on government and stakeholders to urgently protect the country's export-ready SMMEs from the fallout. The tariffs, announced in a formal letter from US President Donald Trump to President Cyril Ramaphosa on 7 July, are expected to hit small and emerging exporters hardest — especially black-owned businesses that have only recently entered global value chains. 'This decision poses a real and immediate threat to the South African SMME sector,' said Shawn Theunissen, founder of ETTP and Property Point. 'Years of work in building export pipelines could unravel overnight.' ETTP, which works to strengthen the country's entrepreneurship ecosystem, says the impact of these tariffs will go beyond just trade disruption. Theunissen warned of knock-on effects for job creation, investor confidence, and the broader transformation of the economy. To limit the damage, eTTP is urging swift, targeted intervention. Its proposed actions include: - A small business trade relief fund to absorb losses - Fast-tracked access to alternative export markets - Support with compliance and recertification for new trade zones - Advocacy for sector-specific tariff exemptions While diplomatic efforts continue, eTTP says the time for contingency planning is now. 'We support the president's diplomatic engagement, but we cannot afford to wait,' Theunissen added. 'South Africa's economic resilience depends on how we support our small businesses through this moment.'
The Citizen
07-07-2025
- Business
- The Citizen
Savanna Skills hub a milestone for Midvaal development
MIDVAAL – The much-anticipated Skills Development Centre in Savanna City is set to be launched this month. This revelation was made by Midvaal Mayor Peter Teixeira. The centre will play a vital role in upskilling and reskilling young people and the existing workforce. The development is a product of a partnership between Heineken and Midvaal Local Municipality. Speaking recently, Teixeira stated that the construction phase including container installation, fencing and utility connections had been completed. He added that the establishment of the centre had reached final stages. 'An operational partner is on board, and the centre is set to officially launch in July. The centre will support small, medium and micro enterprises (SMMEs) with access to information, development tools and artisan training in alignment with the needs expressed through the Integrated Development Plan.' Teixeira said the project had been a long time coming and marked a true milestone for the municipality. 'It took persistent effort, extensive planning, and countless negotiations to finally bring this vision to life. We are committed to seeing our people grow and thrive and this centre will be at the heart of that transformation.' During an announcement about the project, Teixeira highlighted that building a thriving community requires the collective participation of various stakeholders. 'It is imperative that we join forces with private businesses and civil society to make a tangible and lasting impact. By fostering collaboration between industry players, entrepreneurs, and small to medium enterprises, the Skills Development Centre in Savanna City aspires to create employment opportunities and contribute to the overall advancement of the region.' Recently, the municipality in partnership with Heineken Beverages and Ranyaka Community Transformation, hosted the Savanna City Skills Development Centre official open day. MMC for Development and Planning Thembi Maduna, highlighted the vision behind the centre and its role in unlocking opportunities for local talent during her keynote address. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Zawya
02-07-2025
- Business
- Zawya
Pick n Pay's reaffirms commitment to South African SMMEs
On United Nations' Micro-, Small and Medium-sized Enterprises (MSMEs) Day on 27 June 2025, Pick n Pay reaffirmed its commitment to empowering local entrepreneurs. This year's global theme, 'MSMEs and the SDGs: Catalysing Innovation and Sustainable Growth', closely reflects Pick n Pay's Enterprise and Supplier Development (ESD) strategy, which last year supported over 150 small, medium and micro-enterprises (SMMEs) directly and nearly 1,000 through procurement and services. From mentorship to opening shelf space in stores nationwide, Pick n Pay plays a crucial role in helping small businesses thrive and scale. 'When you give small businesses access to market and meaningful support, they don't just survive, they thrive and uplift communities. They become innovators, job creators, and long-term partners in building a more resilient economy,' says Vaughan Pierce, head of ESG at Pick n Pay He points to Comessa Food Services, a local family-run bakery that joined Pick n Pay's supplier programme in 2010. 'What started as a small husband-and-wife operation has grown into a thriving business employing over 100 people and supplying hundreds of Pick n Pay stores with tortilla wraps, naan breads, rotis, pizza bases, and pita breads, including products under the PnP private label range. 'This is just one of many success stories. With the right mentorship and access to market through our shelves, small suppliers are not only able to innovate but also scale significantly. There are hundreds more stories just like this, and we're proud to be part of their journey,' says Pierce. Pick n Pay's dedicated SME division is run by passionate personnel who are committed to the growth of small businesses, ensures that small suppliers receive the hands-on guidance needed to meet commercial demands and scale successfully. The retailer hosts monthly SMME Connect sessions to promote knowledge sharing and sustainability readiness. This approach also contributes directly to several UN Sustainable Development Goals (SDGs), from promoting decent work and economic growth (Goal 8), to supporting industry innovation and infrastructure (Goal 9), enabling responsible production (Goal 12), and forging partnerships for shared value (Goal 17). 'Our ESD programme isn't corporate social responsibility, it's a business imperative. Inclusive business is smart business, and it's key to long-term national resilience. As the world celebrates MSMEs today, Pick n Pay is proud to stand behind South Africa's small businesses, the true heroes of innovation, sustainability, and inclusive growth,' concludes Pierce. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
News24
27-06-2025
- Business
- News24
Govt launches online shop with SA products
The Department of Trade, Industry and Competition (dtic) is set to launch two ecommerce platforms hosted by Proudly SA – one business-to-business and one business-to-customer. The customer-facing platform, Shop Proudly SA, is live, and its storefront offers over 1 700 locally made products in numerous categories, ranging from groceries to fashion, furniture, and health and beauty. It also includes an 'over-the-counter' category with locally sourced supplements ranging from sinus support to sexual wellness. Both platforms are meant to support small, medium and micro enterprises (SMMEs) and local entrepreneurs. The business-to-business platform, dubbed Market Access Platform or MAP, is meant to help corporate buyers find local suppliers. Proudly SA CEO Eustace Mashimbye said large corporates had expressed difficulty in getting access to locally made goods. MAP's database will make it easier to meet localisation targets, said Minister of Trade, Industry, and Competition Parks Tau. Meanwhile, the online shop aims to connect shoppers with quality, locally made products. The official launch of both platforms is set for 1 July, with Tau scheduled to preside over the proceedings. More information will be revealed at the launch, said a Proudly SA spokesperson.
