Hansard: NA: Unrevised hansard- Vote 31
House: National Assembly
Date of Meeting: 11 May 2016
Summary
No summary available.
Minutes
REVISED HANSARD
WEDNESDAY, 11 MAY 2016
PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – NATIONAL ASSEMBLY CHAMBER
Members of the Extended Public Committee met in the National Assembly Chamber at 16:18.
House Chairperson Ms A T Didiza took the Chair and requested members to observe a moment of silence for prayers or meditation.
APPROPRIATION BILL
Debate on Vote No 31 – Small Business Development:
The HOUSE CHAIRPERSON (Ms A T Didiza): Ngizothanda ukwamukela amalungu Omnyango Wezokuthuthukiswa Kwamabhizinisi Amancane akhona lana ukuzoxhasa uNgqongqoshe neSekela lakhe. Ngiphinde ngamukele amalungu omphakathi azile ukuzoxhasa isabelomali sikaNgqongqoshe wezamabhizinisi amancane okumanje sebeyizivakashi zethu. Siyanamukela kodwa ngizothi mangichaze kancane ukuthi, uma nihlezi la eNdlini kufuneka niziphathe kanjani njengezivakashi. Uma sixoxa la phansi, kukhona okukuhlaba umxhwele, mhlawumbe ujabula, ungazishayi izandla, uthule nje umamatheke. Uma kukhona okungakuphathi kahle, ungamane uswace nje kodwa ungamemezi. (Translation of isiZulu paragraph follows.)
[I welcome the officials from the Department of Small Business Development who are present here today to support the Minister and her Deputy. I also welcome members of the public present here to support the Budget Vote of the Minister of Small Business Development, who are our guests today. We welcome you, but first I would like to give you some housekeeping rules that pertain to you while you are sitting in this House as guests.
When we are engaging here on the floor, and there is something that excites you, maybe something makes you happy, do not applaud, just smile. If there is something that doesn’t sit well with you, you can just frown but do not shout.]
We welcome all of you in the gallery as the guests of the Minister. But I was just giving you some housekeeping measures, how you must behave yourself while you are in the House. That, while we welcome you now as the guests of Minister you are now the guests of Parliament, since you are here.
When the debate goes on there may be issues that are exciting and you may be tempted to clap hands, unfortunately you may not be able to do so but you can smile. If there are things that are irritable that are being said, you cannot make sounds or even interject, you can just frown to show your disappointment. I will see it, they won’t see it. You are all welcome.
I will now ask the Minister of Small Business Development. Firstly I will ask the secretary to read the Order.
UNGQONGQOSHE WEZOKUTHUTHUKISWA KWAMABHIZINISI AMANCANE: Sihlalo, ngicabanga ukuthi uqeda ukusho ukuthi sonke kumele simamatheke uma kukhona into engasiphethe kahle noma ingekho engasiphethe kahle manje ngizwa abanye bathi: “Maliyekwe” Cha, malibongwe igama lamakhosikazi. [Ubuwelewele.] (Translation of isiZulu paragraph follows.)
[The MINISTER OF SMALL BUSINESS DEVELOPMENT: Chairperson, I think you have just said that we must all just smile if there is something that does not sit well with us or if there is nothing that does not sit well with us but now I hear others say: “Maliyekwe” [leave it alone] No, let the name of the women be praised]. [Interjections.]]
Chairperson; Ministers; Deputy Ministers; Hon Chairperson and members of Portfolio Committee on Small Business Development, the people that I work with, the people that I really enjoy working with because this is one of the most committees that I enjoy attending because most of the members, if not all members of this committee are always constructive in their criticism of what is good and what they think is not good that we are doing; Director- General of my Department, Prof Edith Vries; Small Enterprise Finance Agency, SEFA, and Small Enterprise Development Agency, SEDA, Board Members and CEOs; Organised Business Formations who have walked a long distance with; our special guests; compatriots; ladies and gentlemen
I stand before you, inspired by the people of South Africa who in 1955, at the Congress of the People declared that "South Africa belongs to all who live in it, black and white." Further and relevant to South Africa's economic transformation plan and the mandate of Department of Small Business Development, the delegates of the Congress in their wisdom and wish for South Africa declared "The people shall share in the country's wealth".
Fast forward, sixty one years later, we are 22 years in freedom and democracy, we have a constitution we should be proud of and
political power we should be exercising without fear or favour. We are guided by the provisions of the Constitution and the Bill of Rights and the dynamics that define our vibrant multi-party democracy as we can in this House.
The clarion call, "The People shall share in the country's wealth" should today resonate not only with a wealthy minority taking into account our high level of inequality but also the millions trapped in poverty, unemployment and inequality. The black population, I may venture to say, is still generations behind the wealthy white owners of the economy of South Africa. Their legal participation in the economy is a mere 22 years.
While the past still haunts us, I remain inspired by the citizens, who despite the socio economic challenges, their past differences, race, gender and status in society, have bought into government initiatives and plans to change the lives of the majority.
I am, in particular inspired by the Informal Businesses, Small and Medium Enterprises, SMMEs, Cooperatives, Entrepreneurs, the young and old who, with or without government support, have continued to live in the spirit of Vukuzenzele! Who, despite the slow pace of Economic Transformation, despite challenges of starting, running and sustaining their businesses, remain resolute and hopeful of the success and growth of their businesses. I salute you.
To those we have assisted and made a difference to your operations, shine so you can be a living example. And to those we have not managed to reach, we have our sights and we do understand the challenges that you are facing.
We are all aware that SMMEs and Cooperatives can be the main drivers of economic growth, poverty reduction, and job creation. This has been proven globally that SMMEs are the heartbeat of stable, growing and better performing economies such as China, India, Germany, amongst others, and greater source of job creation, economic empowerment and transformation. Chile for example, had a remarkable resurgence in economic activity thanks to new entrepreneurial initiatives in the last three years.
In an article by Jose Filomeno de Sousa dos Santos, written for the World Economic Forum, August 2015, he writes:
Africa grew despite the global recession and it shows no sign of abating. The continent is on course to achieve economic growth of around 4.5% this year, a rate higher than predicted for the economies of the world. Amazingly, this is set against a backdrop of a Eurozone crises, low growth and stagnant wages in the West and a slow growth in China. Africa's economic expansion is nothing short of remarkable. There’s something unique about what is happening on the continent now.
This time, the heart of the story is the boom in small and medium- sized enterprises SMEs. Today these small and growing businesses create around 80% of the regions employment, establishing a new middle class and fuelling demand for new goods and services. The scale of this transformation should not be underestimated.
South Africa is in Africa and therefore cannot afford to ignore these facts even though these facts change and figures change from time to time. Opportunities to share experiences, innovation, enterprise development, new solutions and learn from SMMEs and Cooperatives with the rest of the continent can only enrich our own support systems towards ensuring success and possibly opening up market opportunities. The success of SMMEs in South Africa can also be tied to the African markets. Africa is open for business and opportunities exist for SMMEs, Entrepreneurs and innovators. The majority of black people have yet to have an opportunity to go out and see these opportunities in the African continent.
As we celebrate Africa Month, I appeal to local SMMEs to connect more with the continent, acquaint with the continental models and markets and tailor solutions African markets.
Evidence confirms the untapped potential of the sector, as observed in the Goldman Sachs 2015 report on Small business which states, "the South African economy can grow by 5% over the next five years if government and the private sector invest R12 billion in three hundred thousand small businesses"
The country's Nine-Point plan clearly identifies 'Unlocking the Potential of SMMEs, Cooperatives, township and rural enterprises' as key to economic development and empowerment of township and rural communities. President Jacob Zuma's initiative of bringing government, private sector and labour bodes well for the country and brings into sharp focus the importance of SMMEs.
The recent announcement by the State President on the establishment of a fund to support small business, especially black entrepreneurs shows the commitment to growing the economy. Business further announced that they have pledged R1,6 billion. The Deputy President expressed hope that the fund could go into double digits. The fund must in the final analysis respond to what the Chairperson of the portfolio committee always say, respond to the felt needs and plight of SMMEs. The department and organised business formations must be part of shaping the design and implementation mechanisms of the fund. National economies are a product of consensus between economic players, and SMMEs and communities must be the role players also in the economy of South Africa.
Indications are that the small business sector is beginning to take its rightful place as the engine for our economy. This has recently been confirmed by the landmark 2016 tax collection success in which SARS broke through the R1 Trillion Rand ceiling. The tax authority has reported that more than18 000 new SMMEs had for the first time submitted tax returns. Naturally, growth in future revenue is dependent on us up-scaling government interventions coupled with sharpened awareness for more people to be involved in entrepreneurship, start-ups, SMMEs and Cooperatives.
I have called on national and provincial authorities to strengthen cooperative governance. I have also consistently invited MECs responsible for economic and small business development to join me in my engagements in provinces and municipalities and we are beginning to see the concrete manifestations of these efforts. We want to break the tendencies of thinking that three layers of government are three different governments. They are one government, they collect the revenue, and they must make sure that the revenue that is collected is optimally used for SMMEs and the development of South Africa.
This work will take us time but we are convinced that it will happen.
I have met with the Gauteng and Free State MECs for Economic Development, Lebogang Maile and Sam Mashinini. In Gauteng we learnt that the MEC's department profiled 65 townships, which informed their Township Revitalisation Strategy. In the Free State, I learnt that they aligned their strategy to the Nine- Point Plan announced by the President in 2015.
We would like to take this time to thank those who have walked with us on this path. We acknowledge the role of the Black Business Council and its affiliate, NAFCOC, who immediately joined hands with us when we were established and despite their challenges, we have been working together to also make sure that they are strengthened because their strength is an advantage to small business development. We also have travelled with a consortium of the AHI, SACCI and BUSA, whose support has been tremendous. We also acknowledge tireless individuals such as Xolani Qubeka, Carl Lotter – he gives me sleepless nights - Mam' Rose and others who share our zeal for the advancement and success of this sector. We also commend corporates who have opened their value chains to emerging suppliers. Enterprise development is an obligation for all.
We also take this opportunity to thank all departments that continue to support SMMEs and Cooperatives. And I must say, hon members, attending many of my colleagues’ Budget Votes, I clearly could hear them talking to SMMEs and the support, and we do not have to police them to do that because they believe in SMMEs in addressing the challenges facing the country. [Applause.]
Occasions such as these are moments to reflect on the road travelled, to account in line with the commitments we made and to ponder the long distance that still lies ahead.
As promised in last year's budget speech we have completed the Programme Review. The review sought to align inherited programmes to our mandate and to ensure that they respond to the challenges confronting small businesses. The recommendations ranged from up-scaling, mainstreaming, continuing and transferring. These recommendations were then interrogated by the department, which then took the appropriate action. The implementation process is on-going and obviously, change management is always very difficult but we are convinced that we will walk together in commitment.
According to 2015 Public Sector Review of Supply Chain Management, the public sector spends over R500 billion on goods and services and construction works. Given the enormous opportunity for small businesses and cooperatives to access this market, our department is committed to take advantage of this public spend to increase the demand for goods and services produced by small businesses and cooperatives. Consistent with this undertaking, we have signed transversal agreements with the Departments of Public Enterprises, Tourism and Social Development to access small business opportunities.
In addition, we have also entered into agreements with the Manufacturing, Engineering and Related Service SETA (MerSETA) and the AgriSETA to assist informal and micro- businesses in the field of manufacturing and agricultural process. We are convinced that if the SMMEs are not capacitated to take
advantage of this opportunity, those that have always been and are empowered and have deep pockets will always take advantage. We need to turn this around and this comes with accepting economic transformation.
Chairperson, you will recall that last year we announced that we were working with Treasury for the issuing of Practice Notes to implement the 30% set-aside public procurement programme. It has been established that the implementation of this transformative policy shift will require an amendment to the Preferential Procurement Policy Framework Act, PPPFA. Since this legislative review will take a longer time to complete, National Treasury announced in December 2015 their intent to amend the PPPFA regulations of 2011 to open more opportunity. We urge National Treasury to honour this and speed it up because SMMEs are breathing on our necks.
We also made a commitment to increase the value and quality of funding for small businesses. Sefa, has since its inception, increased its total approvals to R3.6 billion and disbursed into the economy over R3.2 billion to over 200 thousand small businesses. For the financial year 2015/16 alone, sefa approved R1.1 billion of loan facilities and disbursed R1.08 billion to 45 263 SMMEs and cooperatives through its various loan distribution channels.
I am aware, Chairperson, in my experience of the past two years, many of the small businesses have been complaining about even this that we are doing and that sometimes they are caught between a rock and hard place. We will work very hard to change what is very difficult. I am also aware that the value for the return of the money that is spent on government sometimes does not really get to the effect it’s supposed to. As the department we want to re-look into this because if we can go back and look at how much government has spent on SMMEs and Cooperatives, and look at how many of them are succeeding, a lot are not succeeding and therefore we have to engage to find out why is this government is spending so much money and so many are not succeeding.
Sixty-one youth-owned enterprises have been funded to the tune of R17.9 million through the Cooperatives Incentive Scheme, while R35.9 million has gone to 117 women enterprises. R45.2 million has funded 325 women-owned enterprises through the Black Business Support Development Programme. We will be monitoring these initiatives through appropriate monitoring and evaluation mechanisms.
During the 2015/16 financial year, 249 women, spread across all nine provinces, received a month long, formal seta-accredited training programme through the Bavumile Skills Development Programme. The programme is designed to increase their expertise in production processes in the creative and craft markets.
The department has entered into a Memorandum of Understanding, MOU, with the government of the Netherlands to promote cooperation in the area of cooperative development. One of the focus areas is to provide technical assistance with regard to the structuring of cooperative models that will improve production, efficiencies and economic viability within cooperatives.
The first cooperative to be based on this concept is the New Generation Cooperative that was launched during the visit of Prime Minister to SA. What makes this cooperative concept unique is that it incorporates members across the value chain, which makes it an ideal tool to fast track growth and development. All processes are in place to ensure operationalisation of this first new generation of co-operatives and I’m sure that the Netherlands and the Prime Minister Mark Rutte will be very excited about this.
Please join me in welcoming a few of the farmers who have signed the MOU to usher in this New Generation Cooperative. We have with us today members of the New Generation Cooperative Mr Piet Prinsloo from ZZ2 whose contribution in this partnership will be mentorship as well as Mr Thomas Sadiki and Ms Shonisani Ndou. [Applause.]
Two special Programmes were launched since the 2015 Budget Vote, namely the National Gazelles and Finfind. The National Gazelles Programme, as one of our flagships was launched in September 2015. The first 40 National Gazelles and the remaining 160 have been selected from 507 qualifying entrants who had successfully completed the application process. They come from key sectors such as manufacturing, ICT, energy and the green economy; health and bio-sciences, and energy. The importance of the Gazelles programme is that it is post start-up. South Africa has, for the past few years, concentrated on start-ups but, it must be clear, that a strategy; whether for small businesses or cooperatives, must provide support at every phase of the SMME pipeline. Post Start-up support is crucial because it talks to sustainability.
We will be introducing the 40 National Gazelles to the nation shortly, and also begin the process of identifying the next
group of growth-oriented small enterprises under the National Gazelles Programme.
Please help me to congratulate the 40 Gazelles who have been selected to pilot the exciting National Gazelles Programme. Some of them are among us today. We wish them well and trust that they will seize the opportunity and stay the 3-year journey of intensive business support and invite the private sector to take an interest in and to support these young people.
Finfind is an online portal that has proved to be a much-needed resource for entrepreneurs seeking access to finance. This can be seen in the 11 665 users who accessed the portal during the first five months from the launch on 31 March 2016. The data from the utilisation gives us a sense of the emerging trends in respect of prevalent sectors, reasons for requesting finance and the top lenders. We are also conscious of the fact that many of the people who are able to access this Finfind are those that have got access to technology. The challenge is, how do we reach those that are in the rural areas, those that in the townships and do not have this access?
The 'Women-in-Maize' programme is another of our Flagships and a concrete example of the benefits of a partnership between
government and the private sector. Working together with the South African Breweries-Miller, SAB-Miller, and the Agriculture Research Council, ARC, the project seeks to empower 5 000 women maize farming cooperatives in the next five years. The initiative will increase the inclusion of black women-owned cooperatives in SAB's supply chain; develop skills of women farmers; improve food security and stimulate local economies by increasing procurement from local suppliers. I wish to take this opportunity to invite you to join me on the 26th May at eKangala in Gauteng to witness the first harvest. We have a director from SAB Miller Mr. Monwabisi Fandeso and participating farmers Ms Lindiwe Masilela, Ms Jabulile Mphela, Ms Elizabeth Pico and Ms Ntombi Yende.
One of the challenges we face, Chairperson, is that of red tape reduction. We remain seized with the task of easing regulatory and bureaucratic burdens on the shoulders of small businesses. We must proceed from the premise that good policies, laws and regulations are conducive to a competitive economy. However, some policies or compliance processes may have the unintended consequences of weakening the business ecosystem.
During the 2015/16 financial year, the Department of Small Business Development, DSBD, continued with the roll-out of red
tape reduction guidelines at municipal level with 81 municipalities. We established a partnership with the International Labour Organisation, ILO, to assess the implementation of the guidelines within four municipalities in KwaZulu-Natal and Free State Provinces. Our goal is to ease and ultimately reduce the cost of doing business.
Last year, we made a commitment in this House that we would continue to work with local and foreign traders who are operating in our informal sector to ensure peaceful and competitive co-existence. I am pleased to announce that, working with all stakeholders, I recently witnessed the signing of a cooperation agreement between South African Spaza and Tuckshop Association, SASTA, led by Mrs Rose Nkosi and Township Business Development South Africa, TBDSA, led by Mr Abbas Mkhize. And I must say hon members that signing of the agreement does not necessarily resolve the problems but it gives us an opportunity to start from somewhere and we call for community support.
The department and its partners are implementing the National Informal Business Upliftment Strategy, which hinges on three pillars: Building capacity of our local traders, Promote partnerships between locals and foreign nationals and Ensuring an effective regulatory environment.
Now, our budget commitments and priorities. Since the start of the 2016 Budget Vote, this House committing to advancing the rise of small business through their mandates and budgets and we have heard of success stories from Ministers of Human Settlements, Science and Technology, Trade and Industry, Telecommunications and Postal Services and Agriculture, Forestry and Fisheries to name a few. Others would say why are we talking about other departments? It is because they contribute to SMMEs.
Consistent with the undertakings we made last year, sefa will over the Medium-Term Expenditure Framework approve a further R3,4 billion of loan financing facilities to SMMEs and Cooperatives. During this period, sefa will fund 157 000 SMMEs and Cooperatives.
The Emerging Enterprise Development Programme will provide support to Women, Youth and People with Disabilities in order to increase their capacity to access economic opportunities and enhance their competitiveness. The programme offers a cost- sharing grant to a maximum of R200 000 to eligible applicants.
The grant may be used to acquire machinery, equipment, tools, raw materials and so forth.
The Department is also working with the National Youth Development Agency, NYDA, and the SA Business Resources Institute, SABRI, to develop youth-owned cooperative micro franchising in the catering sector of the Western Cape Cape Flats region, including Phillipi, Khayelitsha, Delft, Strandfontein, Manenberg, Gugulethu, Nyanga and Saldanha on the West Coast.
Also, the Franchise Association of South Africa, FASA, secured funding from the Jobs Fund which will be used in partnership with other funding institutions to address the funding challenges that limit participation.
We are implementing the Enterprise Incubation Programme, EIP, as a pilot programme during this financial year. The objective is to support the establishment of new incubators and for the growth and expansion of existing incubators. It will offer incubation to small businesses and cooperatives with potential but limited technical and business skills and expertise, to be mentored so that they can take advantage of market
We have examples of the impact of financing provided by sefa. One example is Thabo Vuyo Sikukula: in acquiring the business, the existing jobs of 136 women employees were retained and 5
additional jobs have been created; The business has for the past four years been turning over R21 million per annum and has now increased its revenues to an average R2 million a month, projected to be totalling R24 million per annum.
10 679 clients that received Seda interventions during the 2015/2016 financial year, together with the ones from previous years who continue to receive support, have created a pool of entrepreneurs that can make a contribution to the country's socio economic growth.
The Department and Seda hosted the inaugural Southern African Business Incubation Conference, with the Deputy President delivering the keynote address. The main objective of the conference is for Seda to lead a dialogue on aligning the incubation ecosystem in the country.
Our Legislative Programme, Chairperson. Between January and February 2016, we conducted the first round of provincial stakeholder consultations on the amendment of the National Small Business Act, as amended. The next round of consultations will take place between June and September 2016.
Recognising that the economy and the operating environment has undergone significant changes, and in some instances has become more complex, the envisaged outcome of the review is a conducive legislative and policy environment that supports the growth and development of small businesses and cooperatives.
The regulations for the implementation of Cooperatives Amendment Act have been finalized and should be proclaimed within the next
6 months.
South Africa continues to be a player in the creation of knowledge on entrepreneurship at a global stage. Having hosted two previous international conferences on entrepreneurship and small business I am pleased to inform the House that in March next year we will host the Global Entrepreneurship Congress, GEC, in Johannesburg.
This year's International Cooperatives Day will be hosted in Mpumalanga Provincial Government from the 1st to the 2nd of July.
I am also happy to announce to you that I will be interacting with Small Business Organisations tomorrow at the University of the Western Cape.
I must acknowledge colleagues for their support. Colleagues, thank you for your advice to me and the leadership you provided in this. I also would like to thank the Deputy Minister, Elizabeth Thabethe, thank you for your support and the experience that you have generously shared.
I would also like to thank ... [Interjection.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon Minister, if you can wind up your time is up.
The MINISTER OF SMALL BUSINESS DEVELOPMENT: I would wish to
thank everybody that has supported us as the department but more importantly, I would like to thank my family, my husband – who is in the gallery – who I have to tiptoe around every time I have to leave and come back late; my brother, who is in Cape Town for the first time, and his wife, and thank everyone at home. [Time expired.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Just to assist Members of Parliament, the Minister had 30 minutes. I can see some of you were worried about the time. So, it was 30 minutes, we made sure it is.
Ms N R BHENGU: Hon Chairperson, hon members, fellow South Africans, the ANC supports the budget of the Department of Small Business Development. The ANC believes that this budget, though not enough, would take the country a step further towards radical transformation of the economy that is currently in the hands of a few white monopoly capitals leaving the majority of the South Africans surviving on government handouts and abject poverty.
While appreciative of social grants and free services to the poor people, we are mindful that they are not a permanent and sustainable solution to poverty. Therefore, they need to be complimented by interventions that are aimed at enabling the poor people to become self-sufficient and self-reliant.
When the ANC assumed power in 1994, it inherited a skewed economy controlled by white monopoly capital. South Africa is perceived to be a mixed economy driven by three pillars: The state-owned companies, co-operatives and private sector. This, in reality, is an ideal economy which would be achieved through radical economic transformation to reverse a racially based capitalistic economic system inherited by the ANC government, which continues to enrich a few, leaving the majority in abject poverty.
It was based on this understanding that the ANC in its 53rd ANC Conference resolved to radically transform the economy. The establishment therefore, of the Department of Small Business Development, is part of a radical economic transformation process through small businesses and cooperatives owned by blacks in general and Africans in particular.
In the report of the portfolio committee on 2015-2016 financial year Budget Vote of the Department of Small Business Development, the committee recommended to the department an assessment of programmes inherited from other departments so as to determine their relevance to the mandate of the department and their effectiveness in reducing poverty, unemployment and inequality moving forward.
The department adhered to this and reported back to the portfolio committee. The committee supports the implementation of programmes that are in line with the mandate of the department and those that address challenges and felt needs of SMMEs and co-operatives.
We advised the department to further engage and consult the affected beneficiaries on programmes where there were
disagreements either between the Minister and the Deputy Minister or the department and the portfolio committee.
The committee also identified that the assessment by the department, Small Enterprise Development Agency, Seda, and Small Enterprise Finance Agency, Sefa, looked more inwardly, ignoring oversight reports of the portfolio committee and consultation with SMMEs and co-operatives, especially those that had not been serviced by the department and its entities.
Based on these observations and shortcoming of the assessment report, the portfolio committee advised the department to broaden the assessment and consult with the affected groups before terminating some of the programmes that the department wanted to terminate or transfer to other departments.
We hope that the director-general would find wisdom in the advice of the portfolio committee and speedily resolve these issues, applying constructive change management tactics to prevent unnecessary tensions between the Minister and the Deputy Minister regarding the transfer and termination of programmes which were under the Deputy Minister.
The Strategic Plan of the Department of Small Business 2016- 2021, the Medium-Term Expenditure Framework, MTEF, and the annual performance plan for 2016-2017 financial year is a combination of reviewed programmes inherited from the Department of Trade and Industry, the DTI, and Economic Development Department, EDD, as well as new programmes which are informed by a broader mandate of the department.
The committee’s report on 2016-2017 financial year budget vote of the Department of Small Business Development raises a concern on the merger of SMMEs Development Programme and Co-operatives Development Programme into Programme 2. Our concerns, hon Minister, are based on the following: SMMEs and Cooperatives play different roles in a space of economic development and community economic development; SMMEs are profit driven businesses; and co-operatives are a social capital with community socioeconomic development interests. Therefore pursuing different economic policies and require different support systems, financially and non-financially.
Ngabe sesakuchaza kahle lokhu singuKhongolose ukuba le Ndlu yesiShayamthetho yasinikeza ithuba lokuba nenkulumo-mpikiswano yeziphakamiso ezihambelana nokushintsha komnotho kuleli zwe.
Kodwa-ke le Ndlu ibilokhu iphindaphinda inkulumo-mpikiswano
yesiphakamiso se-DA sokuthi le Ndlu ayisamethembi uMongameli uJacob Zuma nakuba kwaziwa kahle ukuthi le Ndlu angeke ize isithathe isinqumo esinjalo. Lokhu kusibambezele kakhulu, sicela ukunikezwa ithuba lokukhuluma ngokushintshwa komnotho waleli zwe ubuyele ezandleni zabomsinsi wokuzimilela. Maqembu aphikisayo, yekani ukusibambezela.(Translation of isiZulu paragraph follows.)
[As the ANC, we would have explained this properly, if this House had given us the opportunity to have debates on economic transformation for this country. Instead, this House engaged over and over again on debates on the motion of no confidence by the DA on the President Jacob Zuma; even though we all know that this House was never going to take such a decision. This has greatly delayed us, can we please be afforded an opportunity to debate on the economic transformation of this country and for it to be given back to the hands of the native people.
Opposition parties, please do not delay us.]
The Integrated Strategy on the Development and Promotion of Co- operative 2012-2022 document of the DTI has this to point out. Registered co-operatives as at 31 March 2009 were 43 062, KZN being the highest with 26% and Northern Cape the lowest with 2%.
Sector spread indicated that agriculture was the highest with
5 680 registered co-operatives, which is 25%, and fishing being the lowest sector with only 46 registered co-operatives, which is ,0%.
The mortality and survival per province was as follows in 2009. In KwaZulu-Natal, the survival rate 12%; and the failure rate 88%. The Eastern Cape survival rate was 7%; and failure rate was 93%. The Western Cape survival rate was 7%; and failure rate was 93%. The Northern Cape survival was rate 2,5%; and failure rate was 97,5%. The Limpopo survival was rate 22%; and failure rate was 78%. The Mpumalanga survival rate was 12,5%; and failure rate was 87,5%. The Gauteng survival rate was 17%; and failure rate was 83%. The Free State survival rate was 8%; and failure rate was 82%. The North West survival rate was 13%; and failure rate was 87%.
The said strategy also points out that there were more registered agricultural cooperatives before the promulgation of Co-operatives Act 14 of 2005. By 2009, there were 18 co- operative sectors. The best performing sector being: Housing co- operatives at 32 % survival rate and 68% failure rate;
arts and culture at 30% survival rate and 70% failure rate; social and burial at 29% survival rate and 71% failure rate; and
banking at 25% survival rate and 75% failure rate.
The concerns raised by the portfolio committee about putting SMMEs and co-operatives under one programme overseen by one deputy director-general, as well as moving away from a sector based development approach, are partly informed by this analysis.
Hon Minister, we urge you to relook at this issue and provide the portfolio committee with more tangible information and a political policy direction that would influence the direction taken by the department other than recommendations of the consultants assigned by the department to assess programmes inherited from the DTI and other departments.
In conclusion, I thank all members of the portfolio committee who participate in meetings of the portfolio committee, to ensure that the department rises to the challenge. I thank the support staff to the portfolio committee led by King Kunene, the Committee Secretary, assisted by Nola Jobodwana.
To our content advisors Xolile Mgxaji and Sibusiso Gumede: I thank you for the long hours that you spend in the office, sometimes up to 4:00 a.m., to ensure that both the department
and the portfolio committee meet parliamentary deadlines. This is a demonstration of your commitment beyond the call of duty.
To the acting deputy director-general, Mr Lindokuhle Mkhumane, who was a former acting director-general for sometime in the department: Thank you for stabilising the department and putting the foundation for the director-general, Prof Edith Vries, to build on. [Applause.] To all staff members in the department and Ministry: Thank you very much!
I thank the Deputy Minister, Ms Elizabeth Thabethe, for sharing her knowledge and experience of the road travelled by government with SMMEs and co-operatives since 1994 to where we are today.
Last but not least, may I thank Minister Lindiwe Zulu for providing political direction in the department and building relationships with other Ministers, the business sector and other spheres of government? The ANC supports this budget. I thank you. [Applause.]
Mr R W T CHANCE: Chairperson, Minister, Deputy Minister, members of the portfolio committee, hon members, visitors in gallery, good afternoon. Firstly, let me acknowledge and welcome my guests Vuyisa Qabaka and his group of his young mentees from Nyanga East. Vuyisa, through his example as a successful
entrepreneur and commitment to building the next generation of entrepreneurs is showing the way to building a more prosperous South Africa. Malibongwe! [Praise!] [Applause.]
The Department of Small Business Development is approaching its second birthday. At our first Extended Public Committee, EPC, I portrayed our Minister as Cinderella and urged her to avoid the clutches of her ugly sisters, Ministers Davies and Patel whose antagonism to business is well known. Rather, she should be outspoken as the first truly business-friendly Minister in the Cabinet.
Then, a year ago, Minister Zulu had seemed to fall prey to a deep sleep from which we, in the DA were desperately were trying to wake her up. Our sleeping beauty Minister was asleep on the job while her department drifted along with no clear leadership purpose or strategy; this, against the backdrop of the falling contribution of SMMEs to the economy as reported by Statistics SA.
A further year later we are mystified why her department is still so ineffectual and has barley made an impact on the economy; with 8,5 million people unemployed and small businesses continuing to suffer from over-regulation and unkept promises.
Meanwhile Minister Zulu allowed herself seemingly with great enthusiasm to be placed in the role of chief government defender and Zuma cheerleader rather than doing her job by leading the charge to unshackle small business from webs of regulations and red tape.
Why is Minister Zulu defending the indefensible to Parliament, first in the Al-Bashire debate and then in the President Zuma no-confidence debate? Does it instill confidence in the business community when our Minister of Small Business Development provides political cover for one President who is a fugitive from justice and another one who refuses to have his day in court?
But delve a little deeper and some answers emerged. You see, Chairperson, the fairy-tale land inhabited by our Minister and her Cabinet colleagues is not some random wonderland. Whilst the brothers grim have given us Cinderella and sleeping beauty, events of the past few months revealed a most sinister conscript writing team: the brothers Gupta, whose attempt to control the state know no bounds.
It would be a travesty if the Grimm Guptas are found to be deflecting state resources and depriving the Minister and her department of the means to do its job.
Why is the National Gazelle programme in the Minister’s department struggling to get R100 million to support small business while the Department of Trade and Industry’s Black Industrialist programme has been promised R21 billion? The Grimm Guptas? Perhaps the answer is that small business is small pickings to the Guptas, while juicy contracts with state-owned enterprises, through carefully chosen and pliable black industrialist, are far more appealing.
On Monday evening President Zuma announced the formation of an entrepreneur fund, the outcome of one the three task teams as established by business and government to boost growth and avoid a ratings downgrade. The DA has called for the formation of such a fund for the past three years. We are happy government and business are finally listening.
Initial funding of about R3 billion will be injected on a 50:50 basis and is targeting high growth businesses like the Gazelles. The fund has been set up under the watchful eye of Finance Minister Gordhan, and we hear it will be private-sector driven,
thus bypassing Minister Zulu. This raises question of relevance regarding the department’s programmes and how they will interact with the fund. An examination of their performance over the past year and projected impact in 2016-17 reveals just how insignificant the department’s programme are to stimulating growth and creating jobs.
This is because Minister Zulu’s department’s driving motivation is poverty alleviation and not promoting enterprise, redistribution not growth, want not opportunity. So, how does her department measure up?
The programme review released in November recommends and adopt a broad facilitative approach instead of its current deep execution approach. Starting with the smallest part of the budget - support for co-operatives – the department has admitted to the committee that it has no strategy at all.
Turning to Small Enterprise Finance Agency, Sefa, of its
544 million projected disbursements, roughly 10% will be spent on funding 46 000 micro-owned and informal enterprising supporting 69 000 jobs - that is one and a half jobs per business financed. In a sector employing up to 3 million people this is a drop in the ocean. A total of 40% of Sefa’s budget
will be lent directly to 163 SMMEs, creating 817 jobs – 817 jobs created by the country’s flagship small business finance agency; is a pitiful number.
What is just as worrying is that on historic performance, 58% of this loans to SMMEs will not be repaid. The Sefa’s sister agency Small Enterprise Development Agency, Seda, is equally ineffective consuming half of the department’s entire budget or R663 million, it measures impact by the number of businesses supported not by their long-term growth and survival rates.
This box-ticking approach fails to measure turnover, profit, job created, taxes paid, patents registers, exports achieved - in other words things that are tangible and making a real contribution to the economy. What is depressing is that the DA and the portfolio has been saying this for two years repeatedly but nothing changes. Perhaps this is because Seda has been headless for this entire period and still does not have a permanent CEO.
A year ago the DA advocated that Seda and Sefa be merged to create a single point of entry for small business support at the national level. This was supported by the programme review. Now with the formation of the new entrepreneur fund, a better
solution could be to disband them altogether and redirect the funds to the new entity. I am sure Minister Gordhan is keen to avoid an additional burden on the fiscus and any savings in the wasteful government expenditure would be welcomed.
Through a diligent mix of grant, loan and equity finance backed up by mentorship support and widely distributed through approved retail channels, the new fund could have a catalytic impact. It can play a role in the informal and micro enterprise sector by funding badly needed infrastructure. It can support promising startups as well as high growth potential businesses to stimulate the entire entrepreneur ecosystem. Just as is important it can help big companies integrate small businesses into their supply chains by supplying working capital.
The DA has high hopes that big business will get fairly behind it. It must not simply be co-opted by government but in return demand root and branch reform of the regulator environment and labour market to reduce the cost of doing business.
A radically transformed economy is more likely to emerge from this approach than an obsession with funding ineffective state agencies. This are open to abuse and capture by cronies like the
Grimm Guptas or else provided protected employment for useless cadres.
A growing and inclusive economy will not come from throwing money at SMMEs and hope some will stick. It will come from targeted landing and equity investment, opening market linkages to new and innovative suppliers so improving competitiveness in these sectors.
It is time for Minister Zulu and her Cabinet colleagues to enter the real world and leave their fairy-tale world at the developmental stage far behind. I thank you. [Applause.]
Mr T E MULAUDZI: Mudzulatshidulo, EFF i khou hanedza Mugaganyagwama wa muhasho hoyu. [Chairperson, the EFF does not support the Budget Voute of this department.]
Mr T E MULAUDZI: This department was established with the aim for radical transformation of the economy through effective development and increases the participation of Small, Medium and Micro-sized Enterprises, SMMEs and Cooperative in the main stream economy, something that was grossly neglected by the Department of Trade and Industry, DTI, for more than 20 years.
The ANC government is not serious at all with the issue of radical economic transformation because only R1,325 billion for this department was allocated while more than R10 billion was allocated to DTI. All what the DTI does with that money last time, it was to waste money into incentive scheme that continue to fund and develop the already mainstream big business normally owned by white monopoly capital.
Most of the activities to assist SMMEs and Cooperatives are still arrested in the DTI for the reasons unknown by us.
This department budgeted more funds on Programme 1 for Administration R118 million, other than to the Programme 2 for the SMMEs development and cooperative, which is only
R26 million.
Hezwi zwi tou sumbedza fhedzi zwauri hoyu muhasho wo vha hone hu tshi khou iteliwa fhedzi u thusa na u pfumisa mira?o ya ANC fhedzi i si khou thusa vhoramabindu vha?uku.
Afrika tshipembe muvhuso wo vulela zwibveledzwa zwinzhi zwo no bva China na India, zwine zwa sa ?ure, zwine zwa ita uri vhoramabindu vha?uku vha sa ite mbuelo. (Translation of Tshiven?a paragraphs follows.)
[This clearly shows that this department was created to help and enrich members of the ANC without helping small business owners.
In South Africa the government has allowed an abundance of Chinese and Indian products, which are very cheap, to enter our shores; and as a result small business owners are not making any profit.]
Chairperson, we do not produce anything important in this country, all we do is to facilitate the transaction between buyers and the sellers of the product manufactured somewhere.
Late payment by the department to SMMEs and Cooperatives continue to increase the fatality rate of emerging entrepreneurs, which is contrary to the commitment made that all suppliers will be paid within 30 days after the service thereof. No assistant is given to the street hawkers and informal market by this department – only the harassment by the municipal police.
Ro ?walela vhurifhi Vho Minisi?a ri tshi khou amba nga mafhungo a makete wa Tshakhuma hune vhathu vha khou lingedza u tshila nga u rengisa mitshelo vhusiku na masiari hu si na mabunga na ma?i
kha mi?waha ya mahumi mavhili na mivhili ya demokirasi. (Translation of Tshiven?a paragraph follows.)
[We wrote a letter to the Minister in which we informed her about fruit vendors at the Tshakhuma fruit market who sell fruits day and night, as a means of living, without sanitary facilities for 22 years since the dawn of democracy.]
Small Enterprise Development Agency, Seda, and Small Enterprise Finance Agency, Sefa, offices are only in cities, which is a big challenge to the poor people in rural areas and townships to access those offices. Seda has no CEO for the past three years and most of executive staffs in this department are on acting capacity. Where is radical economic transformation?
No report about the signing of Transversal Agreements between this department and other departments to speedy the empowerment of SMME and Cooperative. There is no in-house capacity to manage funds for Craft Customised Sector Programme; instead the funds are still managed by consultant middleman like in the DTI.
The EFF’s people municipality will demonstrate how to localise the economy by engaging small business and cooperative. The EFF will make sure that all malls which are mushroomed to the
townships and villages have 40% of its margin profit to benefit the poor of that society.
Csfa must be funded so that it can fund the cooperative and small businesses because now most of the businesses are suffocating because of the poor finance in the country.
Ri dovha hafhu ra amba ri tshi khou ri havha vhoramabindu vha?uku vha khou kwanyiwa ngauri a vha khou kona u wana thuso na nthihi. [We also say the small business owners are struggling because they are not receiving any assistance.]
The EFF reject this Budget Vote because there is nothing radical economic translation
Ndi khou livhuwa Mudzulatshidulo. Ndaa! [Thank you Chairperson.]
Mr M HLENGWA: Hon House Chairperson, this budget comes on the backdrop of Statistics SA telling us that unemployment in South Africa has gone up and now stands at 26,7%. And then of course is a problem.
However, having said that hon Minister, your department needs our fullest support because on its shoulders rest the collective
needs of our people, who bore the brutal brunt of apartheid and are struggling each day to work their way out of that suffering.
To do this, they need a necessary skills, knowledge and expertise. And whilst we encourage everybody to start a business, that must be coupled with us developing people who will be able to work in those businesses.
And therefore, education needs to be on point. It is pointless to start a business, but not have the workers who are going to be in a position to sustain those businesses. So, that’s important.
I remember my grandmother telling us that she had 10 kids and she was into subsistence farming.
Elima amadumbe nobhontshisi laphaya eMzumbe, engasebenzi, kodwa ngalokho okuncane wagqugquzela abanye besifazane bomphakathi ayehlala nabo ukuthi asilime ukuze ikusasa lezingane zethu liqhakaze. Safunda ngenxa yokuthi wafundisa abazali bethu.
Kuqala ngokuthi, asiyeni emphakathini siyobanikeza ulwazi olufanele ukuthi bakwazi ukuzifukula bona ngoba uma singakwenzi lokho sibabeka ngaphansi kwengcindezi yokuthi ngaso sonke isikhathi kufanele bakhangeze kanti isithunzi somuntu asikho
ekukhangezeni sisekutheni akwazi ukuthi azenzele yena.
(Translation of isiZulu paragraph follows.)
[She was growing yams and beans at uMzumbe, she was unemployed, but with the little she had she inspired other women in the community to resort to ploughing in order for their children to have a brighter future. We studies because she sent our parents to school. It starts by going to the communities and empowering them with the relevant knowledge so that they can enrich themselves because if we do not do that we are putting them in a position where they must ask for handouts every time whereas the dignity of a person is not on being handed things but it is in doing it for yourself.]
And that is why the IFP policy is that of self-help and self- reliance because there is dignity in independent. There is dignity in you being able to provide for yourself. We should be giving them the support they need to be independent.
Hon Minister, there is the issue of unviable municipalities and I would think is in your best interest to zoom into the reasons being given into the municipalities being deem to be unviable. It’s sad that they do not have an income base or a tax base. Let us identify needs economic opportunities in those municipalities
to assist those municipalities to be able to give us what we need. And that is businesses.
So, the fact that all development is local would mean that the developmental in those localities must be underpinned by businesses which are going to be able to sustain those economies.
Science, technology and innovation remain one of the most critical and most important areas in modern days South Africa, and if we are a global competitor, we must do everything possible to ensure that science, technology and innovation are at the forefront of small businesses.
I want to relate a story, hon Minister. In Durban West Street, the main street of Durban, you have vendors and hawkers there, but on a daily basis, there subject to the abuse of Metro Police, who are taking their things and loading them on trucks telling them you don’t have a permit, you are not supposed to be here. They should be chasing criminals, but they are chasing the people who are trying to make ends meet. It’s those things which are a hindrance to small business and really those things must be sorted out.
Hon Chair, beneficiation and key strategic areas of the economy needs to be prioritised because in mining we must be able to say what business opportunities are available around there because we must make maximum use of where South Africa is strong.
And so, I want to conclude by saying, when there is political instability, violence and protests which end up in us burning schools and so on, the first people to suffer are the ones who are in the industry of small business, the ones who are working in those schools, the taxi operators who must commute the students to school.
If we burn the school there is nobody to commute. So, we must be able to look at small business objectives and create a conducive enabling environment for it to thrive and for it to function.
It’s only when we restore the dignity of people to fend for themselves through self-help and self-reliance, will small business begin to make a difference. I thank you. [Applause.]
Mnu S C MNCWABE: Sihlalo, ngibingelele uNgqongqoshe neSekela lakhe, abahlonishwa abakhona kule Ndlu, nezihambeli zethu endaweni ekuhlala khona izihambeli zethu. (Translation of isiZulu paragraph follows.)
[Mr S C MNCWABE: Chairperson, I greet the Minister and the Deputy, the hon members in this House, and our guests in the gallery.]
Mr S C MNCWABE: Hon Minister, the NFP supports the budget of your department. [Applause.] The establishment of the Department of Small Business Development was welcomed by the NFP and we remain convinced that the department has a very important role to play in creating an environment within which small businesses can be established and flourish.
Considering the magnitude of the task awaiting the department, the NFP believes that the allocation of R1,325 billion is inadequate, despite the fact that it presents an increase of 17, 5% compared to the previous financial year.
We are encouraged by the efforts of the department to rationalise its programmes and note with approval the allocation ratio of the budget across the three programmes. Perhaps more funds can in future be allocated for Programme 2, which deals with SMME and Cooperative Policy Research.
Hon Minister, the department is in its infancy and the NFP believes that in-depth research will generate invaluable
information and insight, which will assist in developing and formulating policy and other related small business development enhancing programmes.
The NFP is also in agreement with the observations and recommendations of the portfolio committee contained in the report tabled here today. We are aware that there will be teething problems in any newly established department and believe that the observations and recommendations of the portfolio committee will, if implemented, contribute to the increased efficiency of the department.
In particular, Minister, we agree with the recommendations of the portfolio committee that co-operatives should be looked at in a holistic manner. The NFP believes that co-
operatives could be the back-bone of rural job creation if these enterprises are given dedicated and tailor-made assistance, advice and support. We are also of the opinion that women could be meaningfully empowered through successful
co-operatives and, through this vehicle of enterprise, enter and compete in the mainstream formal economy.
Finally hon Minister, whilst the NFP supports the strategic plan, aims and goals of the department, we believe that our
small business remain economically vulnerable, despite the sterling efforts made by the government to create an environment which is conducive for their development.
What we would like to see is some protection for our small businesses, and in particular those micro enterprises which are migrating from an informal economic venture to a fully- fledged registered and potentially prospering business.
The NFP suggests that we can start protecting our small businesses at municipal level using existing regulations and powers, and we intend to do just that in those municipalities where we will be governing after the local government elections.
Lokhu kuyiqiniso sizobaphatha omasipala, ngeke kungatshazwe. [This is the truth, we are going to run those municipalities, and there is no doubt about that.]
In addition, the NFP will also explore the possibility of legislative measures to entrench such protection measures and present relevant proposals to this august House for the debate in due course. Thank you very much. We support the budget. [Applause.]
Mr N CAPA: Hon Chairperson, hon Minister and other Ministers present, hon Deputy Minister other Deputy Ministers present, hon Members of Parliament, officials of the department, distinguished guests, having listened to the budget presented by the Minister, and having been properly briefed by the department in the portfolio committee, and having listened to all the challenges, we as the ANC we support this budget. [Applause.]
We further believe and urge that any person or group of persons who justifiably claim to be champions for the economic freedom for the poor, they must support this budget. We say so because it is in line with the objectives of our socioeconomic transformation agenda, which implies our facilitation of radical transformation of the economy through increased participation of small businesses and co-operatives in the mainstream economy.
It is interesting that hon Mdlauzi knows this very well.
The objective of the ANC’s socioeconomic transformation agenda, as articulated in the ANC’s Strategy and Tactics of 2007, states that:
The achievement of democracy in 1994 has provided South Africans with the opportunity to deracialise the economy and
society at large and to pursue economic growth, development and redistribution so as to achieve a better life for all.
It is the ANC’s task during this second phase of the democratic transition to intensify radical economic transformation, to overcome the triple challenges of poverty, unemployment and equality. [Interjections.]
I think some of them think it should be radical, radical transformation.
At the 53rd ANC Conference, the resolution taken to develop SMMEs through public sector procurement and infrastructure spending is a firm commitment of the ANC government towards opening a sustainable market for SMMEs and co-operatives to radically transform the economy.
Small business allows more people to participate in the economy, create jobs and spread income.
We submit that it is the responsibility of the ANC government, or the ANC-led government, or the ANC and its government ... [Laughter.] ... to use the budget as a vehicle with which to address the evils of the past without being apologetic. We do
not have to submit to those who would like to limit the budget to their narrow understanding of economy growth. Nor do we want our people to be the victims of demagogues that preach that there is anything beyond radical economic transformation. Both of these tendencies are a distortion.
The fact is that small businesses allow more people to participate in the economy, create more jobs and spread income. It is in this context that we debate this Budget Vote.
The evil past and its subsequent current situation dictates that SMMEs and co-operatives primarily need access to finance. They have been historically excluded because access to finance was a privilege reserved for white, big business. Small businesses and co-operatives have always faced the difficulties of being referred to by big banks as being risky and unbankable. They find it difficult to qualify for loans, sometimes even those which the government had designed for them.
And in this case, you find someone ...
... oboleka imali kuba engenamali angayinikwa imali kuba kusithiwa akanamali. [... who needs a loan because he is bankrupt doesn’t qualify because he is told he is bankrupt.]
This is what is what these people are faced with. [Interjections.] This is the reason we have the Small Enterprise Finance Agency, Sefa, whose strategic objective is to expand access to credit and finance so as to finance the informal and micro-enterprise sector.
Since April 2013, Sefa has assisted 160 000 SMMEs and co- operatives to the value of R3,2 billion. Through its various loan programmes, Sefa has assisted 141 000 black-owned SMMEs,
37 000 youth-owned SMMEs and co-operatives, and 155 000 women- owned SMMEs and co-operatives, the latter to the value of
R1,3 billion.
These funding initiatives have led to the facilitation of more than 130 000 new jobs in different SMMEs and co-operatives. [Applause.]
Access to markets is a huge challenge facing SMMEs and co- operatives. The department has the SMME and Co-operative Program Design, a sub-program of Market Development and Stakeholder Relations, which is a vehicle to fund the implementation of assistance to identifying international market opportunities.
The department has further wisely identified that addressing challenges of this nature needs partnerships. It has therefore committed itself to paying particular attention to establishing strategic partnerships with all relevant departments, as well as with the private sector and NGOs.
All these facts indicate what the ANC government is committed to doing for the people who gave it its mandate. Those people are the people who voted for change in 1994. How can someone now call on them to vote for change? How can they change the change? [Applause.] This Budget Vote favours the poor. The ANC supports it. I thank you. [Applause.]
Mr N L S KWANKWA: Chairperson, I was deployed to say “agbare Voorsitter.” [Laughter.] I will not say that the UDM is going to win municipalities because when hon Mncwabe said that in his speech, the Chairperson got the shock of his life. He pressed the mic button and almost told him that the time had expired, even though we were still busy talking!
Small businesses are vital to the success of job creation and socioeconomic development. Therefore, creating an environment conducive to small business development may produce more jobs than trying to lure one or two large enterprises.
However, the massive jump in the unemployment rate from 24,5% to 26,7% according to the latest Statistics SA report, warrants a candid assessment of the job creation strategies of this government and requires us to put small businesses at the centre of any solution to the problem of unemployment.
While some progress has been made in small business development, the greatest promise of some of the institutions that have been created to facilitate the development of and support for small business, is so far unmet. Many small businesses to this day are still struggling to access finance and business support.
In light of the current failures of small businesses and co- operatives in particular, steps should be taken, not only to determine and address the causes of this failure, but also to consider alternative ways of extending credit to SMMEs as well as the poor and support mechanisms to ensure business success.
In this regard, we should learn from the likes of Grameen Bank from Indonesia, a microfinance institution that specialises in lending to poor households. Grameen Bank and Kreda Desa Bank in rural Indonesia seem to have mastered the art of giving loans to poor households for rice processing, livestock raising, traditional crafts and so on.
But more interestingly, at some point, the average loan at these banks was $71. We could also learn from these banks about innovative local enforcement mechanisms to collect outstanding debts, and about the ways and other mechanisms they use to support and ensure the success of these businesses. For instance, countries such as Bolivia, China, India, Ethiopia, Tanzania, the US, among others, have all copied this model.
The time has come for the department to instigate industrial diversification by incentivising entrepreneurs to invest in markets that they may not otherwise have. Taiwan and Korea have done this very well over the years. We could use the state-owned enterprises, SOEs, that are about to be restructured to achieve this objective.
Sithi mama, okwesibini, phambi kokuba sihlale phantsi khaniyiyeke le nto yokube nixhwithana torhwana, nizame ukulungisa lento yamashishini mancinci. [Secondly mama, we are saying before we sit down you must please stop fighting, and try to rectify the issue of small businesses.]
But more importantly, there is an issue that was highlighted by hon Hlengwa here, ...
... le nto yokususwa kwabantu abathengisa apha endleleni, ubone ukuba ngabona baxhatshazwayo. Sasiyithethile le nto kuhlahlo- lwabiwo-mali lakulo nyaka ophelileyo kodwa isaqhubeka. Enye ingxaki, niya kumana nizibala zonke ezi ngxaki zentswela-ngqesho ingathi nibala iinkobe – ukuba aniyisombululi le ngxaki yokuqeshwa kwabantu ngokungekhosemthethweni apha kula mashishini abucala apho kuthathwa abantu bangaphandle kuba befuna ukubaxhaphaza bayeke abantwana bethu apha ngaphakathi.
Ukhona omnye obeqashwe yinkampani ethile yalapha eKapa, othe epeyinta phaya phezulu esilingini wawa, wabetheka waza waphuka umlenze. Uyayazi ukuba kwenzeke ntoni? Endaweni yokuba bamlungise, bavele bathatha omnye bamfaka kula ndawo yakhe yena bamyeka engqengqe pha. NguMzantsi Afrika ke lowo olumkileyo. (Translation of isiXhosa paragraphs follows.)
[... the one of removal of street vendors, and you will see that they are the ones who are abused. We talked about this in the previous year’s budget but it still continues. Another problem is that, you will keep on counting all the problems of unemployment as if you are counting mealie grains – if you do not solve this problem of employing people illegally in private enterprises, where they employ foreigners because they want to abuse them and leave our children jobless inside the country.
There is another one who was employed by another company here in Cape Town, his leg was broken while he was painting the ceiling. Do you know what happened? Instead of taking care of him, they replaced him with someone else and left him lying where he fell. That is wise South Africa.]
The UDM supports this Budget Vote.
La masela. [Uwelewele.] [These thieves. [Interjections.]]
Rev K R J MESHOE: Chairperson, the national development plan envisages that the small business sector will create 90% of the expected 11 million jobs by 2030. However, according to Pali Lehohla, statistician general of Statistics SA, who earlier in the week announced that unemployment has substantially increased to 26,7% in the first quarter of 2016, compared to the fourth quarter of 2015, South Africa has not done enough to create jobs. He reportedly further said that currently, there is no indication of a turning point.
In February, the World Bank was reported to have said South Africa needed annual expansion of 7,2% from 2018 to reduce the jobless rate to 6% by 2030.
The ACDP welcomes President Zuma’s announcement that a R10 billion fund has been established to help stimulate economic growth through the empowerment of small business operators. We believe if this fund is invested wisely in viable SMMEs, then it will help create many job opportunities for the unemployed, particularly among the youth.
The ACDP believes that small business is a catalyst for economic growth and should play far more significant role in job creation ad poverty alleviation.
Furthermore, the ACDP believes that a culture of entrepreneurship should be inculcated in our children from an early age. We agree with those who are calling for the introduction of entrepreneurship studies from basic school level to tertiary education, because there is a direct link between education and entrepreneurial activity. Our people need proper skills and training to become employable.
We need to invest in the future of our children and our country by providing skills training and mentorship programmes to aspiring local entrepreneurs with a special emphasis on empowering women and youth.
According to Kasiepreneurs, 2015 series, about 60% of South Africa’s unemployment comes from townships and informal settlements, and only 25% of money generated in the townships is spent there.
Chairperson, the levels of entrepreneurship in our black townships are worryingly too low. While these townships are places of great wealthy, very little is generated within these townships or stays within their economy.
The ACDP therefore calls on the hon Minister to ensure that most of the 10 billion the President has promised to pump into the small business sector, benefits the 60% of those unemployed in the townships and informal settlements so that they can receive training and skills that will enable them to become part of the mainstream economy.
Additionally, they need to be empowered so that they can play a far more significant role in job creation and poverty alleviation. Local spaza shop owners and street vendors particularly those grandmothers selling fruits and vegetables and Amagwinya, Vetkoek, should also benefit from this fund. Some of us went to school because of the proceeds from Amagwinya.
The ACDP will support this budget vote that hopefully will transform the township’s SMMEs into self-sufficient and vibrant economies that will participate effectively in the mainstream economy. Thank you. [Applause.]
Mr T Z M KHOZA: Chairperson, Minister, Deputy Minister, hon members, netivakashi tetfu, ngiyanibingelela [and our visitors, I greet you].
Ngiyanibingelela nani lapho ekhaya kaMbambiso ngapansi kwenkhosi Ndlemane 11. Angicale ngekwekhuta lomhlolo lesiwubonako la kutsi ekomitini bantfu bayaphila bayibone indlela. Leyo-ke yi-DA kanye ne-EFF. Batsi bangefika lapha babe lunwabu bagucule imibala yabo. (Translation of Siswati paragraph follows.)
[I also greet you at home, under Chief Ndlemane 11. Let me start by reproving this awe-inspiring occurrence I am experiencing here, in the committee people are alive and they see the way.
Those are the DA and the EFF. But when they come here they become chameleons and change their colours.]
The ANC-led government remains resolute and continue to uphold the commitments made to our people during its 52nd national conference in Polokwane, where we outlined an economic vision
that is premised on the Freedom Charter’s call that the people shall share in South Africa’s wealth. And again, during the 53rd national conference in Mangaung where we took a groundbreaking resolution by affirming the national development plan as the country’s blueprint for socioeconomic development.
We therefore wish to remind the millions of South Africans who overwhelmingly voted for us that we have no appetite of backtracking or betraying the mandate and trust that the people of this country have conferred upon us. Vote ANC. Sishoda ngawe. [We are running short of you.]
The ANC continues iyaqhuba. Yes, we are moving. We are not flawless but we are mindful of the pits calculatingly put before us by saboteurs, this side. However, as Conrad Hall reminds us that “you are always a student, never a master. You have to keep moving forward”.
South Africa’s small micro and medium enterprise, SMME and Co- operative sector continue to register positive growth in terms of employment, economic growth and reduction of inequalities, notwithstanding countless hurdles, which in many instances have tended to strangle the sector’s true potential. Estimates of the
sector’s contribution to the overall economy are fairly substantial.
Small businesses, as an economic sector, currently contribute in the region of 35% to the GDP, and 54% to formal private sector employment. Given this statistics, this gives one an indication that the SMME and the co-operatives sector play a pivotal role in resolving the country’s development challenges such as unemployment and economic growth.
However, compared with many other emerging economies, its contribution to employment and economic growth is below average. This relatively low performance can be attributed to racial distortions in education, income and economic disparities inherited from the old order. It is in this context that ever since coming to power the ANC-led government has prioritised entrepreneurship and the advancement of SMMEs and Co-operatives as the catalyst to achieving economic growth and employment. The ANC government is awake to the reality that small business and co-operatives sector is critical and forms part of the backbone of a thriving society and building blocks of an inclusive economy.
The ANC noted in its 2016 January 8 NEC statements that one of the most integral parts of advancing prosperity is a society in which small businesses and co-operatives flourish. The ANC encourages government to ensure that entrepreneurs benefit.
The development of small businesses and co-operative are critical means to empower people, draw new entrants into the economy, strengthen inclusive growth, build the social economy, encourage social solidarity and create large numbers of jobs.
While small business support was strengthened over the past five years, it is necessary to scale up support and expand the number of viability of co-operatives and small businesses to achieve our development vision.
Hon Chair, we want to see the department reach out to all corners of South Africa to support survivalists, the chicken dusts, including Mphikeleli Galinando in Newskom in Mbombela to name but one. The Small Enterprise Development Agency, SEDA, was established through the National Small Business Amendment Act 29 of 2004. It is an agency of the Department of Small Business Development.
Its mission is to develop, support and promote small enterprise throughout the country, ensuring their growth and
sustainability. Let us see the visibility of Seda in deep rural areas giving support. Since the development of the department Seda has already entered into a memorandum of agreement with the South African Bureau of Standards with the purpose of assisting small businesses to produce goods of acceptable standards.
One of the key tasks of the department is to sign transversal agreements with various departments. The purpose of these transversal agreements is to ensure access to market for small businesses and co-operatives, ensure well co-ordination to avoid duplication.
The National Skills Development Strategy, NSDS 111, underscored the training needs of the co-operatives, including relevant capacity-building for secondary, Apex and co-operative movements as a whole. Hence, the Department of Higher Education and Training undertook to work even more closely with the department.
The department should develop a master plan for co-operatives that will also depict co-operative model that relates to community economic development, aligned to job creation and poverty eradication as well as the establishment of co- operatives incubator. The ANC supports the budget. We say,
people must vote for ANC – that is the real change. Thank you. [Applause.]
Mr H C C KRUGER: House Chairperson, today’s debate takes place against the conditions of an economic decline and bottlenecks that hamper the growth and development of small businesses and co-operatives. The truth of the matter is that when governments fail to implement appropriate legislation; the economy, society and business fail. It is commonly known throughout the world that bad governments introduce bad legislation.
Having said this, the Minister of Small Business Development must, without fail, implement an action plan to reform the regulatory system to ease the business environment. In South Africa’s small businesses and co-operatives are estimated to account for only 60% of the employment compared to a global average of more than 75%. Minister Rob Davies stated in this House that more than two thirds of small businesses fail in the first year. A critical challenge facing start-ups is a result of inconsistent policies, excessive regulations and extreme compliance administration costs across government departments and municipalities. In fact, recent research shows that a small business spends not less than eight working days a month on red tape. Therefore, it makes business sense to implement strategies
that cut red tape and streamline application processes. We have seen the success of this approach in the Western Cape government and the City of Cape Town.
In our view, the Minister failed to support small businesses by not bringing support services to the doorstep of potential entrepreneur. The Small Enterprise Development Agency, Seda, and the Small Enterprise Finance Agency, Sefa, approach is outdated. She also failed to protect small businesses, co-operatives and street traders from the consequences of bad regulatory measures.
Every consultant, political advisor, economist, business owners and even the President warned that if government does not take the reduction of red tape seriously, the already high small business failure rate will increase even further. A study done by Dr Wim Marneffe of the Hasselt University in the Netherlands found that red tape cost as much as 1,6 % of the gross domestic product, GDP, in the Organisation for Economic Co-operation and Development in Europe.
Geagte voorsitter, die vorige regering het al in 1980 politiese geluide begin maak oor die vermindering van rompslomp. Die ANC regering poog al vanaf 2004 om hierdie knelpunt op te los.
Uit die aard van die saak het hierdie poging gefaal en is die sakegemeenskap meer bekommerd as ooit oor die invloed van rompslomp op die groei van Suid Afrika se ekonomie.
Die DA glo in ? samelewing wat vry en regverdig is. Ons glo ook dat kleinsake die drywers van die ekonomie behoort te wees en daardeur geleenthede skep wat werkskepping sal bevorder. Daarom is dit nie ’n verassing dat die DA ’n wetsontwerp in die staatskoerant gepubliseer het wat daadwerklik sogenaamde “red tape” sal verminder nie. Die DA het die beste praktyke wêreld wyd bestudeer en met ’n produk vorendag gekom wat verseker dat ’n omgewing deur die regering daargestel sal word waarin kleinsake en koöperasies suksesvol sal wees. (Translation of Afrikaans paragraphs follows.)
[Dear chairperson, the previous government as far back as 1980 started making political noises about the reduction of red tape. The ANC government has been attempting since 2004 to resolve this obstacle.
It goes without saying that this effort has failed, and the business community is more concerned than ever about the influence of red tape on the growth of South Africa’s economy.
The DA believes in a society that is free and fair. We also believe that small businesses should be the drivers of the economy and in that way create opportunities that will promote job creation. That is why it is no surprise that the DA published a Bill in the Government Gazette that will actually reduce so-called red tape. The DA has studied the best practices world-wide and come up with a product that an environment is created in which small businesses and co-operatives will be successful.]
The Red Tape Impact Assessment Bill is aimed at assessing legislation in order to identify and reduce the reduction burden it places on small businesses. The Bill seeks to address the following problems associated with red tape in South Africa: The general absence of red tape impact assessments; the lack of cost calculations of red tape to business; and a regulatory environment that is not business friendly and fraught with inconsistencies.
By providing for the mapping and the assessment of regulatory measures, the Bill seeks to create a business friendly environment by reducing negative unintended consequences and their cost to business. Ultimately, the Bill aims to create an
enabling environment that will stimulate small business growth and create jobs.
Well-designed legislation on regulatory reform will give the South African economy an opportunity to accelerate growth and development. The DA will continue to find ways through which red tape can be reduced in order to create real jobs for the millions of unemployed South Africans.
Phansi ngethephu elibovu, phansi! [Down with the red tape, down!]
Nkul X MABASA: Mutshamaxitulu, Holobye, Manana Zulu, Xandla xa Holobye, Manana Thabethe, Swirho swa Huvo, ku katsa na vayeni va hina ndza mi xeweta – avuxeni. Laha ku na nchumu lowu ndzi hlamarisaka. (Translation of Xitsonga paragraph follows.)
[Mr X MABASA: Chairperson, Minister, Miss Zulu, Deputy Minister, Miss Thabethe, Members of the House, including our guests I greet you – afternoon. There is something that baffles me here.]
There is something in common between two parties only, while all other parties admire the work that is being done, two parties have decided not to support. Those two parties - that is the EFF
and the DA - what is common between the two of you? I want to go back and say ...
... mitirho leyi Ma-Afrika-Dzonga va hlanganaka na yona namuntlha i mintlhotlho ya vusweti, ku pfumaleka ka mitirho na ku pfumaleka ka ku ringanana eka leswi humaka eka mbewu leyi byariweke hi 1910 na 1948. Xivangelo xa xihlawuhlawu xi fanele xi kumiwa eka ku navela ka mulungu ku va na xiyimo xa xifundzho eka vaaki va Afrika-Dzonga. Ku sukela loko ku ri na ku hlangana hi 1910, xihlawuhlawu xi hundzukile pheteni leyi nga enawini ya vaaki, naswona ku sukela hi 1948 pheteni leyi ... (Translation of Xitsonga paragraph follows.)
[... the kind of work that South Africans are confronted with today is the challenge of poverty, unemployment and inequality which comes from the seed planted between 1910 and 1948. The cause for apartheid must be found as to how a white man has the need to be honoured by the people of South Africa. Since the union in 1910, apartheid has become a lawful pattern to citizens, and that since 1948 this pattern has ...]
Mr N L S KWANKWA: Point of order, hon Chair. Ntate Mabasa, excuse me for one second. Grant my atonement for disturbing you, sir. There are no interpreters here, are they on strike?
The TEMPORARY CHAIRPERSON (Mr B L Mashile): Thank you very much. We have just tried to deal with it. We have just sent one of the Table staff to attend to it. Thank you very much. You may proceed, Ntate Mabasa.
Nkul X MABASA: Ku sukela loko ku ri na ku hlangana hi 1910, xihlawuhlawu xi hundzukile pheteni leyi nga enawini ya vaaki, naswona ku sukela hi 1948, pheteni leyi yi tiyisisiwile swinene. Cecil John Rhodes u vule leswi ePalamende: (Translation of Xitsonga Paragraph follows.)
[Mr X MABASA: Since the union in 1910, apartheid has become a lawful pattern to citizens, and that since 1948 this pattern has been strongly entrenched. Cecil John Rhodes said this in Parliament:]
We have to treat natives... I contend, we must treat them as if
...
Cecil John Rhodes said:
I will lay down my policy on this native question. Either you have to receive them on an equal footing as citizens, or you
call them a subject race. I have made up my mind that there must be ... [Interjections.]
The TEMPORARY CHAIRPERSON (Mr B L Mashile): Order! Allow the member to debate.
Mr X MABASA:
... class legislation that there must be pass laws and Peace Preservation Acts and that we have to treat natives where they are in a state of barbarism in a deferent way to ourselves. We are to be lords over them. These are my politics and these are my politics of South Africa. The natives are to be treated as a child and denied the franchise. He is to be denied liquor. We must also adopt a system of despotism such as works so well in India in our relations with the barbarism of South Africa.
This was said by your hero, Cecil John Rhodes.
The TEMPORARY CHAIRPERSON (Mr B L Mashile): Order! Order!
Mr X MABASA: As if that was enough, Jan Smuts in 1948 followed and said: “It is a fixed policy to maintain white supremacy in South Africa”.
The TEMPORARY CHAIRPERSON (Mr B L Mashile): Order! Allow the member to proceed with the debate.
Mr X MABASA: Smuts in 1948 ...
... u yile emahlweni a vula leswi: [... he continued to say the following:]
Equal rights have never been our policy ... our policy has been European supremacy in this country.
Verwoerd a tshikelela hi ku vula leswaku: [Verwoerd augment this by saying that:]
South Africa is a white man’s country and that he must remain the master here.
I am saying all these things because when we are struggling to build the economy of this country, those that planted the seeds
... [Interjections.]
The ACTING CHAIRPERSON (Mr B L Mashile): Order, hon members! Hon Mabasa, just take your seat a little bit. Hon members, if the member is debating and he is quoting, allow him to quote
whatever he quotes. Therefore, your next member will have an opportunity to respond if you have got anything to deal with that. The Chair has discretion to allow interjections, but if the interjections drown the speaker, then we will always call order on members so that we can hear the member on the podium. Please, can you allow him to proceed? Proceed, hon Mabasa.
Mr X MABASA: The problem, Chairperson, is that truth hurts.
Ntiyiso wa vava. [Truth hurts.]
The TEMPORARY CHAIRPERSON (Mr B L Mashile): Hon members, allow the member to continue with the debate. Please, allow him to proceed.
Nkul X MABASA: Ndzi vulavurile hi sekithara leyi nga riki ya mfumo. Sekithara ya hina leyi nga riki ya mfumo eAfrika-Dzonga a yi ta va yi fana na tisekithara leti nga ri ki ta mfumo ta matiko yo sungula emisaveni ... (Translation of Xitsonga paragraph follows.)
[Mr X MABASA: I spoke to private sector. Our private sector in South Africa should be the same as that of the first world countries the world over ...]
... if it had not been of these people that I quoted that delayed our progress – wrong seats.
Sekithara leyi yi nga riki ya mfumo yi na xiave xa nkoka eka nhluvukiso wa swa ikhonomi na vaakatiko eAfrika-Dzonga. Yi na vutihlamuleri eka ku tlula 20% ta GDP ya tiko. Yin’wana ya mintlhotlho leyi Afrika-Dzonga ri kongomaneke na yona i ku kota ku hambanisa ku hambanahambana loku nga kona eka sekithara leyi nga riki ya mfumo leyi ku nga xiphemunkulu xa ku kala ka ikhonomi. (Translation of Xitsonga paragraph follows.)
[This sector has an important role to develop our economy and our people in South Africa. It is responsible for 20% of the GDP of our country. One of the challenges that confronts South Africa is to tell apart between diversity that is in this sector which is not of government but that is because of the growth of the economy.]
Blacks, meaning Africans, coloureds and Indians have always had a way of using their numbers to achieve many things. This is evident in burial societies and stokvels. Letsema [working together] is an illustration that blacks have always used their numbers to overcome challenges where one group of a farming
community will assist the others so that in turn they come and assist that farmer – letsima.
In South Africa, co-operatives are critical for the development of informal business sector. Organisations like SA National Apex Tertiary Co-operative, Sanaco, need to be supported as they play an important role of supporting and helping in the formation of co-operatives. In Parliament, if we could have a co-operative assuming that a half million rand is set aside by Parliament for cleaning Parliament, if services are provided by a co-operative, that money would be shared amongst many co-operative members instead of enriching one boss who may exploits and possibly underpays the other workers.
Providing a cleaning service or a catering service, we could be contributing in the redistribution of wealth indirectly. A value chain is also critical for the development of co-ops and small businesses, for example, a co-op that manufactures toilet paper and sells it to a co-op that looks after the toilets of Parliament would be a positive step. A co-operative that cleans Parliament would also be redistributing wealth, instead of enriching one business person. A co-op benefits all the masses.
What is common amongst informal sector? Their vulnerability is what is common. Some of the main weaknesses existing in the informal sector are the following: Weak policy environment; excessive and costly legal and administrative procedures; inadequate infrastructure; lack of access to land - by the way that land you know who stole it in 1913 - training of human capital; access to credit in banks; the barriers that separate the structures administrations of informal sector from those of formal sector should be broken down unless a more positive complementary relationship is established between the two sectors. There is little scope for evolutionary growth in the informal sector. Some positive contributions by government could be tax exemptions, tariff protection and subsidies.
Minister, when you came forward to announce the informal trader upliftment project, you did a wonderful thing because with that project you are training many upcoming business people. All those informal businesses were trained and they received certificates and they graduated so that they can compete in the bigger economy of the country. Therefore, I say, well done. This is indeed a momentous milestone on our journey towards the radical transformation of our economy because spaza shops benefited; small, medium and micro-sized enterprises, SMMEs and co-operatives benefited. As you are aiming to train them
throughout the whole country, the benefit of training will be well-spread in the townships as well as in the rural areas.
Let me proceed, Comrade Chair, and say that excessive and costly legal administrative procedures are what is a hindrance to the development of small businesses and co-operatives. But, let me tell you something again. It is important that what you are doing, Minister, of making sure that you co-operate with a two spheres of government, provinces and municipalities, you are doing a great thing. That was witnessed because when it comes to the provision of the remainder of that little 1913 Land Act, it is municipalities that must distribute it. Therefore, it is a good thing that you are working with municipalities. I witnessed in that graduation - that most of these businesses graduated at
- that you worked with your member of the executive council, MEC, of Gauteng on Economic Development so that it is a task that is undertaken by all the spheres of government.
Ndza khensa, Mutshamaxitulu. Xihlawuhlawu lexi xi ta teka nkarhi ku hela – xa vava. [Nkarhi wu hela.] [Va phokotela.] [I thank you, Chairperson. Apartheid which has been in existence for years – is painful. [Time expired.] [Applause.]]
The MINISTER OF SMALL BUSINESS DEVELOPMENT: Chairperson, the
African National Congress was voted by the majority of people of South Africa so that I can be able to speak for those 40 minutes.
And Chairperson, I presented to the House Budget Vote 31 on Small Business Development. I wish to thank all the members who were positive with encouraging interventions. I wish to thank them because South Africa needs positivity to take us forward.
Mr Chance, I do not want to get into much political mudslinging today, I am not in street fight politics, not today. You know when I want to get into that space you will run. I am 100% sure that the majority of SMMEs and Cooperatives do not and will never see me in that light. I am totally committed, as well as my government, to liberating black people from the bondage of economic empowerment. And by the way hon members and people at home ...
... sihlala nabantu la abacabanga ukuthi uma sikhuluma ngokuhlomisa kwezomnotho sikhuluma ngento enesithukuthezi. [... we live with people who think that when we talk about economic empowerment we are talking about something boring ...]
... they’ve said this many times. When our people stand here to speak, even when we refer to our history which is painful and past, they say it is boring. From now on, the one thing that you must always know, our history can never be boring. It is boring to yourselves because you have absolutely no clue of how we got to be where we are today.
You are here courtesy of the African National Congress. You are here courtesy of the sacrifice of the struggle of the people of South Africa. And it is only this side of the House that doesn’t understand that. The rest of the opposition, who have been with us in the trenches, even when they begin to address us they tell us how to do things right because – hon Shenge, you have walked with us throughout this time. Lusaka and Dar es Salaam are the homes that housed us while we had to runaway from you.
To the ANC members in particular and the DM ... [Interjection.]
THE ACTING CHAIRPERSON (Mr. B L Mashile): The hon Minister, just take your seat a little bit, hon Minister.
Hon members, hon members, we had speakers that have debated, they’ve communicated their messages and we expect that the Minister will respond to them. And we have invited guests at the
top that want to listen to the responses. Surely the guests are not here to listen to the noise, they are here to listen to the responses that the Minister is giving.
Can you give the Minister an opportunity to continue to respond? Thank you very much, proceed.
The MINISTER OF SMALL BUSINESS DEVELOPMENT: To the ANC members
in particular and the DM, we can only be strong with your continued support.
Chairperson, you are the one who knows, we are known to be the champion of Cooperatives.
Hon Hlengwa, many of us are products of the grandparents that you spoke about today. Those are the grandparents who sacrificed their own lives to make sure that some of us ...
... singakwazi ukukhuluma lolu limi esilukhulumayo. Ulimi olunzima kakhulu londlebe zikhanya ilanga kodwa siyakwazi ukulukhuluma namhlanje ngoba ... (Translation of isiZulu paragraph follows.)
[... can be able to speak the language we are speaking now. A very difficult language, the white people’s language but we are able to speak it today because ...]
... our grandparents sacrificed to take us to school and educate us. I also would like to say to you, I hear you on the matter of the people on the streets who are always hustled. That is the reason why we want to work strongly with the local structures to make sure that our people are given dignity by ensuring that the local structures build the infrastructure for them.
Education is at the centre of everything. We do understand that and it is for this reason that we believe entrepreneurship must be introduced in schools and adult education in order to empower our people.
Hon Mncwabe, policy research is important for us. It is for that reason that we introduced research, monitoring and evaluation in the department so that facts and figures and information that we have can be able to assist us to make sure that we develop interventions that can respond properly.
Hon Kwankwa, lessons from the grinding bank is what we would also like to see because we believe that progress is important.
And as for the industrialisation and diversification, it is for this reason that we encourage those that are already in capacity to be part of the black industrialists’ project to participate.
The ANC spoke to the banks ...
... amabhange athi kubantu, ikakhulukazi abamnyama, asinakho ukuninika imali ngoba ungenamali ngoba ungenalo irekhodi lesikweletu. Silithathaphi irekhodi lesikweletu? Silana nje eminyakeni engamashumi amabili nambili bonke laba abane ... (Translation of isiZulu paragraph follows.)
[... and the banks say to the people, especially the black people, that we cannot lend you money because you do not have money and because you don’t have a credit record. Where can we get a credit record from? We have 22 years and all those with
...]
... credit records, they’re five generations ahead of us ...
... kungako sithi kumabhange nezikhungo zemali [... that is why we are saying to the banks and financial institutions ...]
... and to government - as the small business development - the transformation of banks, the transformation of financial institutions and the formation of a black bank that will also understand that we’re a developmental state must be speeded up very quickly.
Hon Chair, I also do want to go back and thank all the members of the provincial legislature responsible for economic development, the MECs and everybody to thank them. For them, agreeing to work with us as the Department of Small Business Development. And this is going to assist us in ensuring that the weaknesses that we have learnt from in the past 22 years are lessons for the future.
We have encouraged the media interest in small business development and I want to express my sincere appreciation to the progressive media houses and teams for their coverage of their work and their opinions.
I ... yes ANN7 because it talks to black people.
Hon Chairperson, I wish to thank and express appreciation again to the Director-General, Prof. Edith Vries and the entire department. The people who work closest to me, for their
dedication and commitment in order to keep up with my diary. Your hours have shaped a new normal for the public service.
As for the DA, I am going to meet with you in the streets of South Africa as we campaign for the empowerment of black people, but also to make sure that the people of South Africa continue to vote the African National Congress. In fact, today I have absolutely no intention of going this route. But you know when you stand in here and you hear the noise that comes form this side, it just makes your blood boil and then you think, where do we come from? Where are we going? Should we really continue to carry this lot with us?
And I also want to say, in my life they are asking me where I was. For your information, you ask knowing perfectly well that at youth I had to leave my children, leave my family, my brother who is up there in the gallery, leave my grandmother to take care of my children, to make sure that South Africa is free.
They ask me the question about where I was, if you want to know, I can, outside of this House, explain it to you where was I and how did I get here. I am not sitting on that chair having liberated South Africa in high heels. When it comes to the push,
I take off the high heels and defend democracy, defend freedom, including the defence of my President, President Jacob Zuma.
I thank my family for being here ...
... laba ababanga umsindo, sizotholana nabo emgwaqeni. [Ihlombe.] [... those who are making noise, we will meet in the streets. [Applause.]]
Debate concluded.
The committee rose at 18:19.
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