SA Government Sets Aside R500 Million for SMMEs, SA Displeased: “Looted by Cadres”

• The South African government has set aside half a billion for Small, Micro and Medium Enterprises
• The funds will be managed by the Departments of Small Business Development and Trade, Industry and Competition
• South Africans suspected that the funding would be disbursed through cadre deployment and were not excited

Tebogo Mokwena, a Briefly News current affairs journalist in Johannesburg, South Africa, analyzed policy changes and small business development at Vutivi Business News for three years.

JOHANNESBURG — The South African government has raised R500 million to boost township businesses.

SA businesses to be boosted

According to @eNCA, the acting Deputy Director-General of the Department of Trade, Industry and Competition, Susan Mangole, said the funds will not be distributed as a grant. She said the funds will be disbursed through blended funding, which means part of the fund will be a grant, and the other part will be a loan. She said the company's size will determine the blended finance component.

Read also

President Cyril Ramaphosa shows respect to SMME entrepreneurs, SA slams him

She also said the money would be used primarily for stock and to create a credit facility for a spaza shop to access stock at a wholesale price.

"Because we want to instill discipline, we've put a loan to make sure we monitor process so that after we give business the stock, they don't sell but it goes for what is intended. The loan component part of the grant is for us to hold South Sfricsn businesses liable for money we would have given them,"she said.

View the clip here:

South Africans are not excited

Netizens were displeased with the loan and said it would not be disbursed fairly.

Cde BOB said:

"The department in Nelspruit that does this doesn't even look at applications. They have already allocated their budgets to friends and cadres."

Anthony Gonsalves said:

"80% will be looted by cadres. 20% will be distributed to illegal foreigners."

Read also

Businessman Edwin Sodi is expanding nightclub business, SA unimpressed

BennyMab said:

"The biggest winners will be contracted facilitators, wholesalers and comrades."

A Revolutionary said:

"I've seen this before. History repeats itself."

Cyril Ramaphosa praises small business owners

In a related article, Briefly News reported that President Cyril Ramaphosa praised small business owners at the Presidential Awards.

He said small businesses are the real human capital and called for greater support for their success.

Source: Briefly News