Policy Assessment and Recommendation Report: Budget Vote 26: Department of Small Business Development

Meeting report

The Chairperson said this brief meeting was set to cover two key items. The first was the consideration of the Department of Small Business Development's (DSBD's) Policy Assessment and Recommendation Report, which had been received late the previous week and had therefore required the meeting to be rescheduled to the current date. The second involved the consideration of the second term programme.

The Chairperson requested a motion for the adoption of the agenda.

Mr N Pienaar (DA, Limpopo) moved the adoption, and Mr H van den Berg (FF+, Northern Cape) seconded. The agenda was duly adopted without further discussion.

Report of the Select Committee on Economic Development, and Trade on Budget Vote 36, Strategic Plan, 2024/2025 Annual Performance Plan of the Department of Small Business Development

Ms Mahdiyah Solomons, Committee Secretary, began by reading through the Policy Assessment and Recommendation Report.

The Chairperson asked if there were any pressing issues or comments regarding page one before proceeding to page two. After confirming there were no concerns with page one, the meeting moved on to page two, with the same process applied to pages three and four. When the Secretary reached page five, the Chairperson requested that the recommendations be read aloud to ensure all Members were aligned.

The Secretary then read the recommendations of the Report. The Chairperson highlighted the fragile state of both the global and domestic economies, noting the strain on the African economy due to low growth rates and the impact of the COVID-19 pandemic on small enterprises. The Report's recommendations emphasised the challenge of achieving the National Development Plan’s (NDP's) targets without enhanced support from both the government and the private sector.

Recommendation 1

Recommendation 1 was that growth and support for small businesses should remain a high priority on government’s policy agenda. The Report suggested addressing the financing gap experienced by cooperatives, particularly in underdeveloped provinces and regions. The Committee expressed the need for the Minister to engage with the Minister of Finance to allocate additional resources over the  2024 medium term. This would support the scaling up of funding and financing to boost the growth and expansion of cooperatives, and address the rural and urban financing gap.

Recommendation 2

Recommendation 2 proposed that over the 2024 medium term, the Minister should establish capacity within the Department to support and promote initiatives aimed at improving the ease of doing business nationwide. It further recommended formulating an action plan to accelerate business ease initiatives in collaboration with other government agencies responsible for supporting cooperatives.

Following the presentation of the recommendations, the Chairperson requested a motion to adopt the recommendations.

Adoption of the Report

The following Members of the Committee cast their votes in favour of the Report.

• Ms M Ndlangisa-Nodada (ANC, Eastern Cape).
• Ms S Sithole (ANC, North West).
• Ms H Boshoff (DA, Mpumalanga).
• Mr N Pienaar (DA, Limpopo).
• Mr B Farmer (PA, Western Cape).
• Mr H Van den Berg (FF+, Northern Cape).

Ms N Mcinga (EFF, Eastern Cape) voted against the Report.

The Chairperson confirmed that the policy assessment report had been duly adopted. See report here https://pmg.org.za/tabled-committee-report/5915/

Second term programme

The Chairperson directed the Committee Secretary to proceed with the final item on the agenda, which was the consideration of the second term programme.

Ms Solomons said the term would commence on 20 August and conclude on 20 September. Several key activities were planned, including the NCOP Provincial Whips and Chairpersons of Committees Workshop, and the National Council of Provinces (NCOP) Planning Session during the second week. This period allocated only two weeks for community activities within the second term.

She highlighted two outstanding items for consideration. The first was a briefing on the 6th Parliament legacy reports involving the Select Committee on Trade and the Select Committee on Communications and Public Enterprises. She suggested inviting the Auditor-General of South Africa (AGSA) to provide an audit overview of the departments within the Committee's portfolio. This would offer insight into the Departments' audit outcomes and their impact on the legacy issues. The briefing on the legacy reports was scheduled for 4 September.

There would be a session with the Department of Communications and Digital Technologies on 11 September, focusing on the Budget 2024/2025 and performance plans. The term would conclude with Provincialial Week from 16 to 18 September 2024.

Discussion

Following the presentation, the Chairperson addressed the Committee regarding the second term programme. She highlighted the importance of the Auditor-General’s (AG's) briefing on all departments within the economic and trade cluster and the legacy report. She inquired whether there would be sufficient time for Members to engage with the AG and discuss the legacy report on 4 September.

Ms Solomons confirmed that she had coordinated with the AG's office to ensure the presentation would fit within the available time. The AG was expected to deliver a presentation lasting approximately 45 minutes, with an additional 45 minutes allocated for Member questions and engagement. While the AG would address broad performance issues, the respective departments would need to handle specific responses to detailed queries.

The Chairperson asked if the Department would be available to discuss the legacy report.

The Committee Secretary responded that the current plan was not to invite the Department, as the focus was on the AG's presentation.

However, the Chairperson suggested that if Members needed to discuss the Report with the Department, it might be necessary to arrange for written responses if time did not permit a direct discussion.

Ms Solomons reminded Members that, as per the previous meeting, departments were required to respond to outstanding legacy report issues by 5 August. This would ensure that by the meeting on 4 September, the Report would have been addressed and responses would be available for review.

The Chairperson advised Members to keep an eye out for the departmental responses and to review the legacy report thoroughly. This preparation was essential, given that there would be only two meetings with the Department in the next term. She then called for a proposer and seconder to adopt the second term programme.

Adoption of Committee programme

Mr Pienaar moved the adoption of the second term programme, with the caveat that he would like the Committee Secretary to ensure that, where possible, meetings be held in-person. He emphasised the importance of in-person meetings for effective engagement, and asked her to push for this arrangement, noting that the venue for the meetings was yet to be determined.

The Chairperson acknowledged Mr Pienaar’s request, and indicated that she had also advocated in-person meetings to address logistical challenges. She noted ongoing issues with electricity at the current venue, and requested that Ms Solomons take note of this concern.

The Chairperson then sought a seconder for Mr Pienaar’s motion, and Mr Van den Berg seconded it.  

The meeting was adjourned.