Election of Chairperson; 2024 First Term Committee Programme; Germany Study Tour Report

Meeting report

Election of Committee Chairperson

The Committee Secretary opened the meeting and presented the agenda for the day.

He informed the meeting that, per the National Assembly Rules, the Committee needed to elect a Committee Chairperson (following the passing of Ms V Siwela, MP). He then went on to preside over the election.

Mr E Myeni (ANC) nominated Mr F Jacobs (ANC), seconded by Ms M Lubengo (ANC).

No other name was raised for nomination.

Mr Jacobs accepted the nomination and was duly elected as the Chairperson of the Portfolio Committee on Small Business Development.

Mr J De Villiers (DA) congratulated the new Chairperson, noting that he had big shoes to fill. He noted that the late Chairperson had been exemplary in showing fairness and providing leadership, and hoped the new Chairperson would follow that example.

The Chairperson thanked Members for their confidence in him. He looked forward to working with all Members of the Committee, continuing the practice of unity that has always underpinned their way of work. It remained important to ensure that oversight continued. He promised that the work would continue to be done professionally, listening to the people and the various stakeholders in the sector.

Consideration of the First Term Committee Programme

The Committee Secretary presented the proposed draft committee programme for the first term.

Ms K Tlhomelang (ANC) proposed that the Minister of Small Business Development be engaged on the Global Entrepreneurship Conference that will take place on 13-14 March in Cape Town, to ensure that Members of the Committee are accommodated to attend. She also suggested that outstanding oversight matters across provinces be dealt with. She supported the programme.

The Chairperson directed the Committee Secretary to compile the outstanding oversight issues of the previous terms and share them with the Department so they can provide the necessary responses. He pointed out some of the issues that fell under that proposal.

Ms Lubengo supported the proposal for the programme to be adopted.

The Committee Programme was thus agreed to.

Consideration of the Germany Study Tour Report

The Chairperson wished to acknowledge Mr Viet Gesenhues (DGRV), who was in attendance at the meeting and had been supportive of the study tour as one of the hosts. The study tour took place from 19-24 June 2023.

Mr Gesenhues remarked that the report is a true reflection of what took place during the visit, giving a snapshot of the events of the few days. He thanked the Committee for the opportunity to assist with the organising of the tour.

Over the last year, they embarked on research with the Department of Small Business Development to get real data on the ground, which will be used to inform policy. The findings will be shared with the Committee in due course.

Mr De Villiers agreed that the report was a true reflection of the Committee's experiences during the visit. He thanked all the internal and external stakeholders who played a role in making it a success. His main takeaway from the visit was the importance of structures like cooperatives, something South Africa can learn a lot from. He proposed the adoption of the report.

Ms B Mathulelwa (EFF) remarked that although the tour was a success, she worried that the information gathered would not be brought to life through implementation. She wished to know if there was a programme of action to ensure this. She suggested that in the future, the Minister must follow up with the South African Embassy in Germany, to ensure ongoing interaction for effective implementation.

Ms Tlhomelang agreed that implementing the recommendations would be important, but that process began with adopting the report. She made observations about the work of cooperatives in the country. She was impressed by the concept of worker ownership and the skills training that precedes the incorporation of people into cooperatives. The discipline and commitment of Members were something to take note of - a lesson that is crucial for cooperatives in South Africa. She proposed an additional recommendation on the need to invest in the education and skilling of members of cooperatives before investments are made, so they also understand what their ownership means. She further proposed that there should be more investment in research and development, averaging 3% of the group’s revenue, to ensure the country remains competitive with other countries on such things as exports. She further called for interactions with the various national structures that deal with cooperatives, to get them more involved and for the Committee to understand the setup of cooperatives in the country. There was a need to understand the role of incubators in South Africa, especially concerning cooperatives. She supported the adoption of the report.

The Chairperson remarked that he had noted that the report touched on several issues and proposed that it be shared with other government departments that are mandated to deal with them. These included National Treasury, Trade, Industry and Competition, and Social Development. He recalled that even during the apartheid era, cooperatives were central to the economy, including through state-owned entities, even though this was for the benefit of the minority. There remained an important role for the model to work in, as well as breaking down the monopolies and concentrated markets like retail, energy, and banking sectors. The cooperative and social economy models provide a credible alternative to these, including their role in dealing with social issues like women empowerment and others. There was an opportunity to incorporate the lessons of the study tour in the democratic era to benefit more people.

The report was duly adopted.

Consideration of Committee minutes

Due to time constraints, the Chairperson proposed that the consideration of the minutes be postponed to the next sitting of the Committee, which was agreed to.

The meeting was adjourned.