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Question NW1685 to the Minister of Small Business Development

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26 May 2023 - NW1685

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Small Business Development

Whether she will furnish Mr H C C Krüger with a comprehensive breakdown of the procurement allocation of (a) her department and (b) every entity reporting to her in terms of the percentages allocated to (i) small-, medium- and micro-enterprises, (ii) cooperatives, (iii) township enterprises and (iv) rural enterprises with a view to evaluating the effectiveness of the set-aside policy of the Government in fostering an inclusive and diverse economic landscape (details furnished) in the (aa) 2021-22 financial year and (bb) since 1 April 2023?”

Reply:

I have been advised that;

a) The Department of Small Business Development (DSBD) Preferential procurement allocation:

(aa) 2021/22: R29 154 571.56 (total procurement spending)

  1. SMMEs: R3 873 228.25 – 13.2% of total procurement.
  2. Co-operatives: R0.00
  3. Township enterprises: R2 817 196.92 – 72.7% of SMME.
  4. Rural enterprises: R1 056 031.33 – 27.3% of SMME.

(bb) 2022/23: R44 535 493.44 (total procurement spending)

  1. SMMEs: R13 366 125.02 – 30% of total procurement.
  2. Co-operatives: R0.00
  3. Township enterprises: R9 367 783.78 - 70.1% of SMME.
  4. Rural enterprises: R3 998 341.24 – 29.9 % of SMME.

b) The Small Enterprise Development Agency (Seda) Preferential procurement allocation:

(aa) 2021/22: R491 353 796 (total procurement spending):

  1. SMMEs: R176 083 798 – 35% of total procurement.
  2. Co-operatives: R0.
  3. Township enterprises: R95 085 251 - 54% of SMME.
  4. Rural enterprises: R49 303 463 - 28% of SMME.

(bb) 2022/23: R392 054 198 (total procurement spending)

  1. SMMEs: R172 205 153 – 44% of total procurement.
  2. Co-operatives: R0.
  3. Township enterprises: R84 380 525 – 49% of SMMEs.
  4. Rural enterprises: R46 495 391 - 27% of SMMEs.

c) The Small Enterprise Finance Agency (sefa) Preferential procurement allocation

(aa) 2021/22: 95 233 357 (total procurement spending):

  1. SMMEs: 60 203 272– 63.22% of total procurement.
  2. Co-operatives: R0.
  3. Township enterprises: - R54 845 813.18 – 91.10% of SMME.
  4. Rural enterprises: - R5 357 458.82 – 8.89% of SMME.

(bb) 2022/23: R86 691 884.74 (total procurement spending)

  1. SMMEs: R 66 274 556.00– 76.45% of total procurement.
  2. Co-operatives: R0.
  3. Township enterprises: – 60 059 248.96 – 90.62% of SMMEs.
  4. Rural enterprises: R6 215 307.04 – 9.38% of SMMEs.

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