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.

DA Soweto West on Radio Today

The DA in Soweto is speaking to our traditional voters in this podcast on Radio Today.

Is there change happening in our democracy?

Yes, there is, and here is the proof. It's our leader Mmusi Maimane's and Joburg Mayoral Candidate Herman Mashaba's campaign message.

I am very proud of Matau Maloma and Billy Nyaku, Chair and Secretary of the DA Soweto West Constituency, for speaking out and communicating our message.

Press statement: Minister not appointing SEDA CEO will affect potential jobs

Democratic Alliance press statement by

Toby Chance MP

DA Shadow Minister of Small Business Development

Minister not appointing SEDA CEO will affect potential jobs

12 April 2016

Release: immediate

Today’s SMME Summit in Nelson Mandela Bay (NMB) chaired by Minister of Small Business Development, Lindiwe Zulu, has ignored the fact that the Small Enterprise Development Agency (Seda) has been without a permanent CEO for over two years. Her inaction in this regard has contributed to the stagnation in the stimulation of small to medium enterprises. This is despite her assertions today that “small business is big business”.

Minister and Deputy Minister at odds over Department strategy

The minister of finance, Pravin Gordhan, announced in his budget speech that a further R475 million has been reprioritised to the Department of Small Business Development (DSBD) for assistance to small and medium enterprises and cooperatives.

The minister of DSBD, Lindiwe Zulu, has stated that this is not enough. In a small business portfolio committee meeting last Wednesday, it was clear there are deep divisions within the department between the minister and her deputy about the department’s strategy, and how their budget allocations should be spent.

The minister and director general, Edith Vries, agree with the recent strategic review recommendations from consulting firm SizweNtsalubaGobodo (SNG) to abandon or transfer sector specific programs and restructure the department using a value chain approach. This would mean transferring support for crafts back to the DTI, which the Deputy Minister ElizabethThabethe and some members of the department sharply disagreed with.

A large part of this budget allocation is to fund craft fairs in the US, Europe and Asia, which are jamborees for the deputy minister and her officials but they deliver precious little in terms of building sustainable overseas markets for the craft sector. No explanation has been offered for why this sector should be given preference over others within the department.

Furthermore, the SNG review did not include the Small Enterprise Finance Agency (SEFA) or the Small Enterprise Development Agency (SEDA) which account for 80% of the department’s budget, posing the question as to why this consulting report was compiled in the first place. SEFA's latest results show it costs R1.55 for every R1 loaned to small business, and 58% of its direct loans are impaired.

The Committee Chair Ruth Bhengu shared the DA view that the department cannot come to the committee with its house in disarray regarding strategy, and that an urgent review of SEFA and SEDA is required before we will accept that the additional funding for the department is justified and will be well spent. 

The DA support the recommendations to transfer crafts back to the DTI and maybe Deputy Minister Thabethe and her cherised staff with it.

DA Parliamentary caucus signs anti-racism pledge

Today, the DA Parliamentary caucus gathered on the National Assembly steps for a group photo, holding up the DA anti-racism pledge which we had all just signed.

  

This is an important re-statement of our principled stand against racism, which is divisive and against the letter and spirit of both the country's and the DA's constitution. I will be encouraging all my members and activists in Soweto West to sign the pledge and give it force in their everyday lives.