Durban, South Africa – The Portfolio Committee on Small Business Development has completed the KwaZulu-Natal (KZN) leg of public hearings on the National Small Enterprise Amendment (NSEA) Bill. The hearings, part of a nationwide consultation, saw KZN become the seventh province to provide feedback on the draft legislation. The committee will continue its consultations in North West and Gauteng before presenting its report to the National Assembly.
According to Parliament of South Africa, During the hearings in KZN’s four districts – Ugu, uMgungundlovu, King Cetshwayo, and eThekwini Metro – the Bill garnered strong support from participants, particularly small business operators. In the eThekwini Metropolitan Municipality, community members expressed hope that the Bill, once enacted, would aid the small business sector. Concerns were raised about the complexity and length of the funding application process with the Small Business Funding Agency (SEFA), with many applications reportedly rejected without explanation. Delays in obtaining business permits from the government were also highlighted.
The NSEA Bill proposes to enhance the operating environment for small, micro, and macro enterprises (SMMEs) by amending the National Enterprise Act. This amendment will consolidate SEFA, the Small Enterprise Development Agency (SEDA), and the Co-operative Banks Development Agency into a single entity named the Small Enterprise Development Finance Agency. This new agency will be responsible for funding and providing non-financial support to small and emerging businesses. Additionally, the Bill includes provisions for establishing the Office of the Small Enterprise Ombud Services to handle complaints within the sector.
Small business operators also voiced concerns about the increasing number of foreign-owned tuckshops in their communities. They suggested that legislation should regulate the presence of foreign-owned businesses in townships and rural areas. Another significant submission called for a review of public sector procurement processes, particularly the non-refundable tender fee requirement, which is seen as detrimental to the small business sector. The need for simplification of the tender process to accommodate small business operators was emphasized, along with the lack of SEDA and SEFA offices in the provinces, causing inconvenience and travel expenses for many.
Ms. Violet Siwela, the Committee Chairperson, stated that the purpose of the public hearings was to gather public input on the Bill without immediate responses from Members of Parliament. She assured the community that the Small Enterprise Amendment Bill aims to address several of the issues raised, such as bureaucratic obstacles in business support. Ms. Siwela noted the bill’s intention to merge agencies currently operating independently, addressing complaints about bullying and red tape in the sector.
The Chairperson also addressed concerns regarding foreign nationals operating businesses, emphasizing the need for them to operate legally, pay taxes, and comply with South African laws.