Question NW1628 to the Minister of Small Business Development
23 June 2016 - NW1628
Chance, Mr R to ask the Minister of Small Business Development
(1)(a) How will her department be involved in the joint fund established by the Government and the private sector to support small business, as announced by the President, Mr Jacob G Zuma, on 9 May 2016, (b) how will the mandate of the specified fund differ from that of the Small Enterprise Finance Agency Ltd (SOC) and (c) by what date will the specified fund be fully operational;
Reply:
(a) The joint private and public sector fund established by the private sector and Government under the auspices of National Treasury is a fund that is aimed at accelerating the scale-up of high-potential SMEs for jobs and growth. This fund will only address one part of the mandate which we call growth-focused support. The details of how the different departments will be involved in the establishment and operationalization of the fund are still being discussed by the parties.
(b) As mentioned in the President’s statement the focus of the fund is to provide “venture” capital-type funding and mentoring to the target groups, especially black entrepreneurs, Sefa does not provide venture capital funding but provides financial support through loans.
(c) The date of operationalizing the fund has not been finalised as the parties are still dealing with the details of setting up the fund and therefore it is envisaged that the dates will be announced once all systems are in place.
(2) whether her department will have an oversight function over the specified fund; if not, why not; if so, what are the relevant details? NW1798E
The parties are still in discussions regarding the operationalisation of the fund and as this fund’s mandate falls squarely on the Department of Small Business Development’s mandate the department will play a role in the fund.