MICRO, SMALL AND MEDIUM ENTERPRISE FUNDING POLICY GAZETTED

MICRO, SMALL AND MEDIUM ENTERPRISE FUNDING POLICY GAZETTED

• 13 February 2025
• Small Business Development
• SA Legal Academy

A policy for funding micro, small and medium enterprises (MSME) has been gazetted and is expected to create an enabling environment to support the formation, expansion and maintenance of existing small businesses. This is according to a Small Business Development Minister Stella Ndabeni-Abrahams’ foreword to the policy document, which notes the fundamental importance of an ‘holistic, co-ordinated and pragmatic framework for strengthening the provision of development finance’ for MSMEs and the co-operative sector.

By facilitating access to finance, the new policy is expected to:

• ‘reduce the level of concentration or monopolies in certain sectors of the economy’
• ‘transform … ownership patterns’ across the economy
• promote financial education among ‘small enterprises operating in unserved and underserved areas such as townships and rural areas’
• improve the co-ordination of MSME funding support programmes, and
• reduce ‘double dipping and ecosystem fragmentation’.

Released in draft form in April 2023 for public comment, the policy includes an implementation plan outlining practical steps to be taken by private and public sector financiers.

• policy

Published by SA Legal Academy Policy Watch

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