SMD

Annual Report 2023/2024

Reason for the virement % The Administration Programme contributed a net virement of (R2.8 million). The funds were mainly reprioritised from goods and services to Programme 3: Development Finance to write-off irrecoverable debt (R762 thousand), and Programme 4: Enterprise Development to cover the shortfall on the travel budget (R2 million). % The Sector and Market Development Programme contributed a net virement amount of (R12.8 million). The funds were reprioritised from goods and services to Programme 3: Development Finance to supplement the IMEDP (R8.7 million), R2.5 million to sefa for the finalisation of the merger process, and R506 thousand for the write-off irrecoverable debt. An amount of R1.1 million was reprioritised to Programme 4: Enterprise Development to cover the shortfall on travel and consultants. % The Development Finance Programme received net amount of R42.4 million. Funds amounting to R762 thousand were received from Programme 1: Administration for the write-off irrecoverable debt. Programme 2: Sector and Market Development contributed a total of R11.7 million to supplement the budget for IMEDP (R8.7 million), write-off irrecoverable debts (R506 thousand), and the finalisation of the merger process (R2.5 million). An amount of R30 million was received from Programme 4: Enterprise Development as a correction of funds misallocated during the adjustment period. % The Enterprise Development Programme contributed a net virement of R26.9 million. Programme 1: Administration contributed an amount of R2 million to cover the shortfall on travel, Programme 2: Sector and Market Development contributed an amount of R1.1 million to cover the shortfall on travel and consultants, whilst an amount of R30 million was moved to Programme 3: Development Finance as a correction of funds misallocated during the adjustment period.

delivery and subsequent payment of the vehicles before the 31 March 2023 deadline, hence the request to roll over the funds. A description of the reasons for unauthorised, fruitless and wasteful expenditure and the amounts involved as well as steps taken to address and prevent a recurrence

The DSBD did not incur any unauthorised, fruitless and wasteful expenditure.

Strategic focus over the short to medium term period The 2024/25 financial year is the last year of implementation of the 2020/21 to 2024/25 planning cycle. The results/ conclusion of the 2024 General Election will introduce the Seventh Administration of Government for the 2024 to 2029 period. The new planning cycle (2025/26 to 2029/30) starts a year after the elections as it is informed by the decisions of the new Administration. The 2024/25 Annual Performance Plan (APP) that the Department started implementing in April 2024 will also be used as the transition plan from the Sixth Administration to the Seventh Administration. Although the 2019-24 MTSF period ended on 31 March 2024, the DSBD continued to plan for the relevant revised 20219 24 MTSF indicators that were not achieved by the end of the 2023/24 financial year. The revised 2019-24 MTSF ascribed a critical role to small businesses, including Co-operatives, which included increasing their contribution to the Gross Domestic Product (GDP) from 35% to 50% by the year 2024. As part of the implementation of the revised 20219-24 MTSF, the DSBD was expected to play a much more direct role in respect of Priority 2: Economic Transformation and Job Creation of which its expected outcomes were the creation of more decent jobs and inclusive economic growth. The SMMEs and Co-operatives are recognised as a critical sector that will contribute significantly to the transformation of the economy, inclusive economic growth and job creation. For small businesses to be able to deliver on these imperatives, Government has a critical role to play in ensuring that they are properly supported, and a conducive environment is created for them to strive and grow. Special attention is also required for support interventions and initiatives that will broaden opportunity and employment for Women, Youth and Persons with Disabilities (WYPWDs).

Roll-overs

A request to roll over R2.538 million for four vehicles ordered in July and August 2022 from the RT57 transversal contract was not approved by the National Treasury. The supply chain issues experienced by the manufacturers delayed the

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Department of Small Business Development • GENERAL INFORMATION • Part A