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IOL News
a day ago
- Business
- IOL News
Minister Ndabeni outlines steps to support small businesses and co-operatives
Minister of Small Business Development Stella Ndabeni is confident that the legislative and policy interventions will make the support to Micro, Small and Medium Enterprises more coherent. Image: Kopano Tlape / GCIS Small Business Development Minister Stella Ndabeni on Friday said her department was steadily moving towards closing policy gaps in order to remove constraints in a move to enable Micro, Small, and Medium Enterprises (MSMEs) and co-operatives to thrive. 'We move from the premise that the small enterprise support ecosystem has legislative and policy gaps. To this end, we are steadily closing those gaps to ensure that constraints are removed, and a more enabling environment is created for MSMEs and co-operatives to thrive,' Ndabeni said. Speaking during the budget vote in the National Assembly, she said the amendment of the National Small Enterprise Act has led to the establishment of the Small Enterprise Development and Finance Agency (SEDFA) and the Office of the Small Enterprise Ombud. Ndabeni also said the MSME and Co-operatives Funding Policy was approved by the Cabinet last year. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'We are now working on partnerships to establish an alternative MSME credit rating system as well as a movable asset registry to address the lack of collateral among MSME borrowers. 'The current risk assessment models used by financiers (audited financial statements, credit history, collaterals) are not suitable for MSMEs, as they are mainly designed for big businesses. With an alternative credit data model, we can ensure that financiers are able to use alternative data like bill payments, e-commerce activity, mobile money transactions, and others to foster financial inclusion for the majority of MSMEs.' Ndabeni further said they were working with the Department of Trade, Industry and Commerce on the Transformation Fund. 'This will be a game-changer for MSME funding. We must enhance MSMEs' readiness to secure funding, particularly in poorer provinces, townships, and rural areas.' Ndabeni stated that they have recently approved the National Business Licensing Policy and were now amending the Business Licensing Bill to simplify business licensing and introduce preferential licensing for targeted empowerment and promotion of previously disadvantaged groups in economic activity for specific sectors. She added that the department was finalising the National Entrepreneurship Strategy, which focused on the individual entrepreneur and their needs at different stages of development. Another policy initiative was the Township and Rural Economic Development and Revitalization Policy, which will go to Cabinet this year. 'This policy will enable a more consolidated approach by the government when it comes to supporting township and rural MSMEs and co-operatives. The policy calls for the creation of vibrant township and rural small business hubs, which will require a more coordinated approach by the three spheres of government around zoning, business licensing, infrastructure provisioning, and investment.' Ndabeni was confident that the legislative and policy interventions would make the ecosystem more coherent and ensure that more MSMEs were better served, especially those owned by women, youth, people with disabilities, as well as enterprises from townships and rural areas. According to Ndabeni, the department was also instituting a new service delivery model. 'We are developing a robust monitoring and reporting framework for all ecosystem players, which we will present to the Cabinet this year. We are also establishing internal research capacity and undertaking sector-specific value chain studies to inform targeted interventions in productive sectors of the economy.' She also said they have created a research think-tank to support evidence-based policy and formal partnerships with deans of commerce from higher education institutions. 'We are also finalising the appointment of a new Small Business Advisory Body.'
The South African
30-05-2025
- Business
- The South African
Cabinet approves bill to limit employment of foreign nationals
The South African Cabinet has approved the tabling of a new bill in Parliament aimed at limiting the employment of foreign nationals, as part of broader efforts to address rising unemployment among citizens. According to Eyewitness News , Cabinet also approved the National Labour Migration Policy White Paper. The policy sets quotas on how many documented foreign nationals businesses can hire in sectors like agriculture, hospitality, tourism, and construction. Minister in the Presidency Khumbudzo Ntshavheni announced the decisions during a briefing at Parliament on Thursday 29 May. She said the policy aims to balance employment across sectors and address public concerns about job opportunities. Ntshavheni said the migration policy works alongside other government measures. These include limiting business visas for foreign nationals in certain sectors and changing the National Small Enterprise Act. These changes aim to prevent foreign nationals from establishing small, medium and micro enterprises in some areas of the economy. Cabinet also approved the tabling of the Employment Services Amendment Bill. The bill aims to create a legal framework to regulate the employment of foreign nationals. The bill would give the employment minister the power to set quotas. It would also tighten controls on labour brokers to stop the exploitation of undocumented workers. In a further directive, Cabinet instructed the Minister of Employment and Labour to expedite consultations to define what constitutes scarce and critical skills in the country. This process will help build local skills and create more job opportunities for South Africans in key areas. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Eyewitness News
30-05-2025
- Business
- Eyewitness News
Cabinet approves bill aimed at regulating movement and employment of foreign nationals
CAPE TOWN - Cabinet has approved the introduction of a new bill that seeks to limit the number of foreign nationals that can be employed in the country. At the same time, it also approved the National Labour Migration Policy White Paper, which introduces quotas on the total number of documented foreign nationals that can be employed in major sectors such as agriculture, hospitality, tourism, and construction. Providing an update on Cabinet decisions at parliament on Thursday, Minister in the Presidency Khumbudzo Ntshaveni said the policy is aimed at achieving balance across the sectors, including addressing South Africans' expectations for job prospects amid rising unemployment. "The policy complements other interventions such as the enforcement of a list of sectors where foreign nationals cannot be allocated business visas and amendments to the National Small Enterprise Act, 1996, which limits foreign nationals establishing Small, Medium and Micro Enterprises, and trading in some sectors of the economy." ALSO READ:- DA argues that employment targets set by labour minister could lead to employers firing employees who don't meet quotas Cabinet has also given the thumbs up to the tabling of the Employment Services Amendment Bill in Parliament, which provides a policy framework and the legal basis to regulate the employment of foreign nationals in business. It will also tighten the screws on labour brokers to prevent exploitation through the employment of undocumented foreign nationals. According to the bill, the employment minister will have the power to set quotas for the employment of foreign nationals. "Cabinet directed the Minister of Employment and Labour to speedily finalise the mapping, through consultations, of what constitutes scarce and critical skills in order to develop a domestic skills base to improve absorption of more unemployed South Africans."
