Press statement: Government no closer to launch of venture capital fund earmarked for job creation

Democratic Alliance press statement by Toby Chance MP DA Shadow Minister of Small Business Development

13 July 2016

Release: immediate 

In replies to parliamentary questions from the DA, neither Minister of Finance Pravin Gordhan nor Minister of Small Business Development, Lindiwe Zulu, could provide substantive details on the mandate, composition, governance structures, funding, board of directors or launch date of the venture capital fund that President Zuma announced to much fanfare on 09 May, over two months ago. 

This means that the job creation promised by this venture capital fund will be stalled because of government’s hollow commitment to placing job creation at the apex of its agenda. 

DA mayoral candidate for Tshwane Solly Msimanga pickets outside the Department of Small Business Development

This morning, the DA staged a picket outside the offices of the DSBD at the DTI Campus in Hatfield, Pretoria protesting the high levels of unemployment in the city and the Department's failure to fulfil its mandate to bring it down by supporting small businesses.

Sadly I could not attend as I was at an event in Joburg where our mayoral candidate, Herman Mashaba, introduced all our ward and PR candidates to the media.

Below is Solly's hard-hitting speech which includes some practical and immediate steps he would take on being elected the DA mayor of Tshwane.

Update on the township industrial parks - very slow progress to resolve the issue

One of the issues I have taken up since my appointment as Shadow Minister of Small Business Development is the appalling neglect of the township industrial parks in Gauteng. These were set up in the early to mid 1980's by the Small Business Development Corporation, a joint venture between government and the private sector headed by Anton Rupert's Rembrandt Group. They were an attempt to get around the Group Areas Act, which prevented blacks from owning businesses in areas designated for whites, which was where the economy of South African was concentrated.

For some background on the parks, read this piece I wrote for Politicsweb here as well as this blog post here.

Press statement: SEFA corruption stifles small business and job creation

Democratic Alliance press statement by
Toby Chance MP
DA Shadow Minister of Small Business Development 

08 June 2016
Release: Immediate

The DA calls for the Small Enterprise Finance Agency (SEFA) to bring to a speedy conclusion the disciplinary inquiry initiated against officials suspected of being involved in collusion and bribery in the issuing of loans.

Since November 2015 the DA has been in correspondence with small businesses owners in Tshwane who raised concerns about alleged fraud at SEFA. Six months later the matter is yet to be resolved.

Entrepreneur Fund: has potential, could do better

President Zuma made much of his May 9^th announcement of a new fund to finance entrepreneurs. It’s the first tangible deliverable of the collaboration government and business promised after their emergency meeting convened in February, prompted by the fallout from Nenegate.

The DA’s 2014 election manifesto called for the formation of a National Venture Capital Fund. How does this new fund stack up?

Zuma and Finance Minister Pravin Gordhan, and business at large, are relieved South Africa has so far avoided the dreaded ratings downgrade. The announcement came just three days after Moody’s retention of its investment grade rating for the country, seemingly emphasising government and business in partnership are serious about supporting small businesses and the important role they play in creating jobs and stimulating growth. 

Declaration on the Appropriations Vote - Small Business Development

This evening in the debate on the budget votes for all government departments I made the following declaration on behalf of the DA:

The Department of Small Business Development can rightly be accused of fiddling while South Africa burns.

The DA will support all efforts and money spent on policies and programmes which deliver real, measurable and positive returns.

This Department has not yet demonstrates these returns, therefore we cannot support its budget.

Budget speech in Parliament today - New entrepreneur fund has potential but business must demand concessions in return

Watch the debate on YouTube here - scroll through to halfway through the video, this is where the debate begins, after the Energy debate.

Chairperson, Minister, Deputy Minister, members of the portfolio committee, honourable members, visitors in the gallery - good afternoon.

First let me acknowledge and welcome my guests, Vuyisa Qabaka and his group of young mentees from Nyanga East. Vuyisa, through his example as a successful entrepreneur and commitment to building the next generation of entrepreneurs, is showing the way towards a more prosperous South Africa. Malibongwe!

Chairperson, the Department of Small Business Development is approaching its second birthday. At our first EPC I portrayed our minister as Cinderella and urged her to avoid the clutches of her ugly sisters, Ministers Davies and Patel, whose antagonism to business is well known. Rather, she should be outspoken as the first truly business-friendly minister in the cabinet.