Amendments to the Business Act will be finalised this year, reducing regulatory impediments for SMMEs and co-operatives and making it easier for entrepreneurs to start businesses.
This was one of the announcements made by President Cyril Ramaphosa, presenting the State of the Nation address (SONA) last night.
“Through the Small Enterprise Finance Agency (SEFA) we plan to provide R1,4-billion in financing to over 90 000 entrepreneurs,” he says.
“Government, in partnership with the SA SME Fund, is working to establish a R10-billion fund to support SMME growth. Government is looking at the possibility of providing R2,5-billion for the fund, with the balance of R7,5-billion to be raised from the private sector.”
In addition, the licensing of the PostBank will lay the foundation for the creation of a state bank that will provide financial services to SMMEs, youth- and women-owned businesses and underserved communities, he adds.
“As the National Assembly considers the Postbank Amendment Bill, the Postbank is reviewing its service offerings so that it can provide a viable and affordable alternative to the commercial banks.”
Skills development will also come under the spotlight, and the National Skills Fund will this year provide R800-million to develop skills in the digital and technology sector through an innovative model that links payment for training to employment outcomes.”
In addition, a comprehensive review of the work visa system will establish a more flexible points-based system to attract skilled immigration, implement a trusted employer scheme to make the visa process easier for large investors, and streamline application requirements.