The Small Enterprise Finance Agency (Sefa) must change its funding model to favour the downtrodden and marginalised small, medium and micro enterprises (SMMEs) and co-operatives.
This was the aice from the Portfolio Committee on Small Business Development to Sefa, in which the Committee insisted for a radical change of its funding model.
“We need to see a radical economic transformation of the SMMEs and co-corporatives carried out by the downtrodden and marginalised citizens of this country,” said Ms Ruth Bhengu, Committee Chairperson.
Sefa appeared before the Committee on Wednesday to present its five-year corporate plan, but was sent back to the drawing board when its representatives, including board Chairperson Dr Sizeka Magwentshu-Rensburg, failed to provide answers to the questions raised by members of the Committee.
As a result, Dr Magwentshu-Rensburg offered to go back to the drawing board and reconsider how the agency will conduct its business in order to meet the expectations of the Committee.
Speaking about radical economic transformation, Ms Bhengu made reference to the franchise sector and supported her argument by quoting Clause 3 of the Freedom Charter, which says “the people shall share in the wealth of the country”.
“Let us know if you come across obstacles that prevent you to implement economic transformation, so that we can introduce legislation that will level the playing field,” said Ms Bhengu.
On the other hand, the Committee also interacted with the MCV International Forwarding, a company that seeks to assist SMMEs and co-operatives to participate in the international market through export.
Ms Nontokozo Gxumisa, the Managing Director of MCV International Forwarding, requested the Committee to endorse her company, saying it should consider introducing legislation that will encourage the formation of export management companies in order to speed up export development.
However, Ms Bhengu said the Committee cannot endorse a company, but can only endorse a business module.
Finally, the South African Women Entrepreneurs’ Network, an entity of the Department of Small Business Development, could not present its strategy and requested more time to go back and synergise it with that one of the department. The entity was given until 15 May 2015 to present its revised strategy.
Source : Parliament of South Africa