Latest news with #StellaNdabeni-Abrahams
IOL News
6 days ago
- Business
- IOL News
Red tape, funding shortfalls and lack of data still constrain small business growth
Red tape, limited funding access, and inadequate data systems remain key challenges facing South Africa's small business sector. Addressing the National Council of Provinces' Select Committee on Economic Development and Trade, Small Business Development Minister Stella Ndabeni-Abrahams told the committee that structural issues continue to constrain micro, small and medium enterprises (MSMEs) These include limited access to finance, regulatory and administrative burdens, lack of access to competitive markets – particularly in rural and township areas – and insufficient ICT and innovation support. Ndabeni-Abrahams also flagged the absence of a centralised and up-to-date MSME database as a constraint on evidence-based policymaking and effective monitoring of support programmes. Ndabeni-Abrahams underscored the Department's alignment with the National Development Plan's target of generating 90% of new jobs through MSMEs over the long term, and said institutional reforms are aimed at improving service delivery and strengthening the Department's support models.
Daily Maverick
12-06-2025
- Business
- Daily Maverick
Retail giants step in with millions of rands to help entrepreneurs on their way up
South Africa's small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don't make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths' corporate social justice director, Zinzi Mgolodela, said: 'Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. 'Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety, giving children the opportunity to thrive in safe, supportive environments.' The Land Bank's CEO, Themba Rikhotso, said: 'This initiative aligns directly with Land Bank's mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country's long-term food security.' Fishing for hustlers under 35 Meanwhile, Mr Price's Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer's efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. 'The country has no shortage of young minds with bright ideas and business know-how,' said the foundation. 'So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.' The closing date to apply to the Mr Price Foundation is 30 June. Credit desert According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa's SMME ecosystem. DM
IOL News
05-06-2025
- Business
- IOL News
Stella Must Go: Youth unemployment soars under her leadership
Minister Stella Ndabeni-Abrahams has presided over a department that has delivered little to nothing for SMMEs or the youth who rely on entrepreneurship for opportunity and survival. There has been a steady decline and collapse of support for Small, Medium, and Micro Enterprises (SMMEs) under the leadership of Minister Stella Ndabeni-Abrahams since her appointment 1400 days ago. Her tenure has delivered frustration for millions of young South Africans, be they job seekers or job creators. The recent appointment process for the Small Enterprise Ombud, which will be debated in Parliament today, is one more example of political patronage being placed ahead of championing SMMEs. Instead of appointing a credible, independent voice to advocate for struggling entrepreneurs, the process has been marred by backroom deals and insider politics. The very office that is meant to protect SMMEs from government red tape and corruption is being used as a reward mechanism for loyal cadres. Minister Ndabeni-Abrahams has presided over a department that has delivered little to nothing for SMMEs or the youth who rely on entrepreneurship for opportunity and survival. Despite numerous glossy presentations and photo ops, the facts speak for themselves: South Africa now has the highest youth unemployment rate in the world, with 4.7 million young people aged 15–34 not in employment, education, or training (NEET). In Q1 of 2025, the economy grew by a dismal 0.1%, confirming that the government's economic policy is directionless and anti-growth. Over 320,000 graduates remain unemployed, proving that education alone is not enough in a broken economy with no job pipeline and no enabling environment for new businesses. Young entrepreneurs trying to start or grow businesses face insurmountable obstacles: late payments from the government, lack of access to capital, bureaucratic red tape, and no safety net when disputes arise. Instead of reforming the system to support these youth-led enterprises, the department is busy recycling political appointees and rehashing failed strategies. It is time for Minister Ndabeni-Abrahams to step aside. South Africa needs a youth-focused, jobs-focused leader at the helm. Someone who understands the urgency of the unemployment crisis and who will fight for real reforms to unlock the full potential of the SMME sector. BOSA calls for: The immediate suspension of the current Ombud appointment process, pending a full review to ensure transparency and credibility. The resignation or dismissal of Minister Ndabeni-Abrahams, whose track record has become a barrier to growth, not a driver of it. The establishment of an independent SMME Red Tape Commission, led by private sector and youth representatives, to identify and remove the barriers preventing small business success. South Africa's young people are not lazy. They are not without ideas. They are without opportunity. If the government cannot get out of the way, it must be pushed out of the way. It is time for Stella to go. Roger Solomons - BOSA Spokesperson
TimesLIVE
20-05-2025
- Business
- TimesLIVE
Government 'will remain committed to R100bn transformation fund'
Small business development minister Stella Ndabeni-Abrahams has encouraged women to participate in the public comment process for the government's R100bn transformation fund aimed at helping small businesses access funds and markets. Speaking on Tuesday at the Women's Dialogue and Stakeholder Luncheon in Paris, Ndabeni-Abrahams called on women to share their opinions of the fund despite criticism in some quarters that the concept was flawed. 'There are people hell-bent on undermining this transformational agenda that we want to drive. There are people already who are committed that they will take that process to court,' said Ndabeni-Abrahams. She said the government would stand by the fund despite opposition from some quarters, including major business organisations. 'Yes, we are a government that promotes nonracism, but we are a country with a particular history that is not going to be washed away. We are standing by our constitution in terms of addressing past imbalances,' said Ndabeni-Abrahams. The Transformation Fund was proposed by the department of trade, industry & competition. It aims to raise R20bn over the next five years and disburse R100bn, using a mix of contributions from enterprise and supplier development (ESD) obligations under B-BBEE codes of good practice and voluntary donations by big corporations. After anger that the fund would impose new obligations for corporations, trade industry & competition minister Parks Tau allayed fears, saying it would not replace existing ESD programmes and contributions would be voluntary. Ndabeni-Abrahams said the government was pushing its plan to allocate 40% of public procurement to women, however women needed strategic procurement opportunities. 'We do see that the government and the private sector still want to use women to only provide catering. We want to ensure that our role does not remain one that provides food and does the décor. We (women) are bigger than those services and that is why we are working with the department of trade, industry & competition to ensure access to funding for small business,' she said. The Women's Dialogue and Stakeholder Luncheon is the first formal engagement of the France South African Investment Conference led by Deputy President Paul Mashatile. Philisiwe Mthethwa, non-executive director at the Industrial Development Corporation, also speaking at the event, said gender equity was crucial and not only a women's issue but a societal imperative. 'Let us forge partnerships rooted not only in profits but in purpose. Let us walk out of this room with collaborations formed, capital committed, and courage renewed. We are not here because we were invited, we are ready to lead, ready to build, ready to change the story for every woman and every girl, every unseen hereon still waiting to be seen,' she said.
The Star
13-05-2025
- Business
- The Star
SA data, airtime too expensive
Concerns over the high costs of data and telephone calls have been raised by various political voices over time. The persistent issue of expensive data and telephone call costs in South Africa requires urgent and meaningful intervention. It has been six years since Minister Stella Ndabeni-Abrahams, Minister of Communications and Digital Technologies, committed to tackling the "exorbitant" pricing within the communications sector. Regrettably, this commitment has not yet translated into noticeable improvements for consumers. A comparison with other African nations clearly illustrates the price discrepancy. In Ghana, for example, 1 GB of data can be obtained for as little as R1.49, with the highest price point around R23 for the same amount. South African consumers, on the other hand, face considerably steeper charges. To illustrate, Cell C offers 1 GB valid for a single day at R25. Capitec Connect charges R25 for 1 GB valid for a week, and R45 for data without expiry. Even these rates appear more competitive when compared to Vodacom and MTN, both of which charge R89 for 1.2 GB. Further highlighting the disparity, data costs in Nigeria and Brazil are significantly lower, with 1 GB priced at about US$0.39 (R7.12) and US$0.40 (R7.31), respectively. Concerns over these high costs have been raised by various political voices over time. The Inkatha Freedom Party initially called for action, and more recently, the Economic Freedom Fighters (EFF) have advocated for the immediate removal of expiry dates for prepaid mobile data and airtime. This underscores the double challenge faced by consumers: high prices coupled with the risk of losing unused data and airtime due to expiration. Promotional offers, such as limited-time WhatsApp data, often force users into intensive, short-term usage to avoid losing their allocation. Until significant reductions in data and call costs are achieved, many South Africans, particularly the youth in both rural and urban areas who are disproportionately affected by these high expenses, will likely continue to feel that the financial burden they face is not being adequately addressed by the relevant authorities.
