Question NW881 to the Minister of Social Development

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08 December 2020 - NW881

Profile picture: Cachalia, Mr G K

Cachalia, Mr G K to ask the Minister of Social Development

(1)Whether her department will offer any form of Covid-19 financial or other relief to small businesses; if not, why not; if so, what are the relevant details; (2) whether the Covid-19 financial or other relief will only be allocated to qualifying small businesses according to the Broad-Based Black Economic Empowerment Act, Act 53 of 2003, as amended; if not, what is the position in this regard; if so, (a) on what statutory grounds and/or provisions does she or her department rely to allocate Covid-19 financial or other relief only to small businesses according to the specified Act and (b) what form of Covid-19 financial or other relief, if any, will be made available to other small businesses?

Reply:

  1. and (2), (a) and (b)

The Department of Social Development has entered into a Memorandum of Understanding (MoU) with the Department of Small Business Development. One of the key responsibilities of DSD as per the MoU is to facilitate linkages of cooperatives to economic opportunities deriving from Social Development programmes.The department has developed a Tool on support to Co-Operatives. During Covid-19, Department of Social Development has identified Co-Operatives and other small businesses that are involved in food production and purchased food especially in the form of vegetables and fruits from them which were part of the food parcel packages. This has brought some form of reliefto these small businesses as they had access to some form of income during the height of Covid-19 Pandemic.

As a way of offering any form of Covid-19 financial or other relief to small businesses, DSD continues to link Co-Operatives to Community Nutrition and Development Centres (CNDCs) where people have access to cooked meals.

Plans are currently underway at level one to gradually openCommunity Nutrition and Development Centres in line with the current Covid-19 regulations. Small Businesses and Co-Operatives will continue from these linkages as plans to massifythis initiatives are underway within the Department of Social Development, South African Social Security Agency and National Development Agency.

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