Question NW3795 to the Minister of Small Business Development

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10 November 2022 - NW3795

Profile picture: Luthuli, Mr BN

Luthuli, Mr BN to ask the Minister of Small Business Development

What steps has her department taken to alleviate the financial risk and pressure caused by load shedding on small and medium enterprises (SMEs), as the cost of business disruptions and the risk of damage to business equipment caused by load shedding has significantly impacted all South African businesses, but large businesses are often able to weather the financial storm whilst SMEs with their limited financial capacity are not equally as fortunate?”


The Department has not packaged a particular intervention to mitigate against this challenge. However, there has been some observations on the Informal and Micro Enterprise Development Programme (IMEDP) applications of the trends of alternative source of energy such as generators. It should be borne in mind though that the programme is meant for the informal and micro segment of enterprises.

The Small Enterprise Finance Agency (sefa) has a range of products and service that can be accessed by SMMEs to address some of these challenges brough about by loadshedding. In particular, the Township and Rural Entrepreneurship Program (TREP) program can be used to acquire backup generators as well as working capital is a relevant programme for affected enterprises. The TREP program is aimed at rural and township businesses. The loan is for a maximum of R1m with a maximum grant of R100 000. Should the entrepreneur require more than R1m, sefa is also administrating the Business Viability Program (BVP) which is aimed at assisting businesses in distress to a maximum of R15m in blended finance, with the grant capped at 20% of the loan depending on developmental impact.



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