{"id":250056,"date":"2023-02-15T09:53:13","date_gmt":"2023-02-15T07:53:13","guid":{"rendered":"https:\/\/www.myza.co.za\/government-commits-to-assisting-small-businesses-affected-by-load-shedding\/"},"modified":"2023-02-15T09:53:13","modified_gmt":"2023-02-15T07:53:13","slug":"government-commits-to-assisting-small-businesses-affected-by-load-shedding","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/government-commits-to-assisting-small-businesses-affected-by-load-shedding\/","title":{"rendered":"Government commits to assisting small businesses affected by load shedding"},"content":{"rendered":"
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Government will be rolling out a Power Purchase Package to cushion Small, Medium and Micro Enterprises (SMMEs) against the crippling effects of load shedding.<\/p>\n

\u201cWe have designed packages to cater for all segments of our sectors. In rolling out these packages, SMMEs need to capitalise on opportunities presented by this transformation of energy production,\u201d the Minister of Small Business Development, Stella Ndabeni-Abrahams, said on Tuesday.<\/p>\n

Eskom has been battling to keep the lights on for the past few months, leading to increased stages of load shedding and a devastating impact on lives, livelihoods and businesses.<\/p>\n

The President has also declared a National State of Disaster on Energy, which will assist in the speedy resolution of energy supply challenges, whilst minimising its impact and contribute to the rebuilding process.<\/p>\n

Addressing Tuesday’s debate on this year\u2019s State of the Nation Address (SONA) delivered by President Cyril Ramaphosa, Ndabeni-Abrahams welcomed the announcement by the President that R1.4 billion will be allocated towards financing entrepreneurs through the Small Enterprise Finance Agency (Sefa).<\/p>\n

\u201cWe will be doing more to provide financial support to small businesses. This amount is significant, however, nowhere near what is required to address the SMME credit gap, which the International Finance Corporation estimates at upward of R350 billion. There are a number of interventions we are making to address this,\u201d the Minister said.<\/p>\n

She said the future must not replicate the past in terms of racial patterns of economic ownership.<\/p>\n

\u201cEconomic reforms must embed transformative outcomes that are meaningful and measurable. This requires that we are bold and courageous in changing the old structures of our economy. The state must fund the developmental dividend.\u201d<\/p>\n

Ensuring SMME growth<\/strong><\/p>\n

She noted that the country\u2019s Economic Reconstruction and Recovery Plan (ERRP) identifies a number of strategic areas around which the growth of SMMEs can be enabled.<\/p>\n

\u201cWe have heard complaints that our application systems are outdated and that we have inadequate offices countrywide.<\/p>\n

\u201cTo address this, ease of application will be better enabled through the digitalized systems we are working on. We intend to use advanced analytics supported by modern financial technology solutions to improve our delivery model.<\/p>\n

\u201cWe have been engaging with established players in the SMME finance ecosystem and we are partnering to extend our reach and loan approval time,\u201d Ndabeni-Abrahams said.<\/p>\n

The Department of Small Business Development is also increasing its footprint as a portfolio at local level, to improve access to services.<\/p>\n

The second strategic focus area identified is to reduce red-tape and remove regulatory blockages.<\/p>\n

\u201cWe are making strides as government in this direction. We have identified various red tape constraints that hobble the success of SMMEs and cooperatives.<\/p>\n

\u201cWe will also be paying attention on measures to curb illegal trade that operate in the shadows of criminality and is a source of violent tensions in many communities. It is important that trading activities happen within the parameters of rule of law and fair competition,\u201d the Minister said.<\/p>\n

Support mechanisms<\/strong><\/p>\n

Through Department of Agriculture, Land Reform and Rural Development (DALRRD) the department has an array of financial and other support instruments, which include among others the following:<\/p>\n