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Wednesday, 9 May 2018
Media advisory: DA to present plan to prevent job losses in the SME sector
Date: 09 May 2018
On Friday, 11 May 2018, DA Leader, Mmusi Maimane MP, will be joined by the DA Shadow Minister of Small Business Development, Toby Chance MP and the DA Gauteng Shadow MEC for Provincial Treasury and e-Government, Adrianna Randall MPL, to present our plan that will help solve the problem of late payments to Small and Medium Enterprises (SMEs) by government departments and the private sector.
While SMEs generate half of South Africa’s gross domestic product (GDP) and nearly 60% of employment, the sector’s viability is threatened by the problem of late payments.
Payments made after 30 days affect the cash flow of SMEs undermining their ability to survive as going concerns. This often leads to job losses and closure of some SMEs, further worsening the rate of entrepreneurial activity in South Africa.
In a country with almost 10 million jobless people we should be focusing on SMME’s as the drivers of creating jobs. Despite this national government is notorious for late and non-payments to SMME’s who do business with the state. Government departments have as much as R7 billion in outstanding invoices to date.