SMD

Annual Report 2023/2024

Outcome Two: Improved, integrated and streamlined business processes and systems In an effort to ensure that Department, together with its entities (Seda and sefa ), business process and ecosystem partners systems are improved, integrated and streamlined, the Department continued provide support to municipalities to roll out the Red-Tape Reduction Awareness Programme. Through this Programme, the Department supported 55 municipalities to roll out the Red-Tape Reduction Awareness Programme. The Programme is primarily aimed at raising awareness, capacity building and commissioning research that: a) Helps identify sources of red tape that affect small business and Co-operatives at both a national and local levels. b) Monitors and evaluates impact that the Department’s awareness raising, and capacity building have on municipalities in terms of addressing red tape reduction on the implicated procedures and policies; and c) Investigates sectors and sub-sectors wherein the influence of red tape is unpacked in order to develop strategies and interventions that circumvent the negative effects of red tape. Outcome Three: Increased participation of SMMEs and Co-operatives in domestic and international markets The Department continued to implement SMMEs-focused Localisation Policy Framework that was adopted by Cabinet in 2020/21 financial year. To date, a total of 1 092 products produced by SMMEs and Co-operatives have been linked or introduced to domestic markets through working relationships with large retailers and wholesalers across the country. This achievement is against a five-year target of 1 000 products. To drive localisation, the Department designed a focused Small Enterprise Manufacturing Support Programme aimed at building and supporting SMMEs participating in the manufacturing value chain. The purpose of the SEMSP is to build a manufacturing sector for an improved industrial base through a focused import replacement programme and build the industrial base for both the domestic market and external market. The Programme aims to contribute to South Africa’s localisation strategy. As at 31 March 2024, since inception in 2020, SEMSP disbursements amounted to R642.7 million, which was disbursed to 104 SMMEs, assisting in facilitating 4 488 jobs. In order to ensure that the outcome is realised during the medium-term period, the Department also set itself an annual target of supporting 200 SMMEs and Co-operatives exposed

to global market opportunities. At the end of the financial year under review, 627 SMMEs and Co- operatives were exposed to global market opportunities. The Department is continuing to intensify its efforts, working towards realising its outcome to increase participation of women, youth and PWDs, SMMMEs and Co-operatives in the domestic and international markets. The Department successfully concluded the formalisation of the collaboration with Proudly SA through the signing of a Memorandum of Agreement (MoA) in February 2024. The signing of the MoA paved a way for the co-hosting of the Buy Local Summit and EXPO in Sandton on 25 – 26 March 2024. The MoA also committed to the inclusion of no less than 100 small enterprises per annum in the localisation and buy local campaigns at National and Provincial levels. The theme of the Summit and EXPO was “Localisation: An inclusive approach for all sectors of society to contribute to economic growth and job creation.” Eight DSBD-supported SMMEs and two DSBD-supported Co-operatives participated at the EXPO by showcasing their products. Further to this, the ten SMMEs and Co-operatives will be supported to become members of Proudly SA so that they can access various other benefits by being members. Panel discussions and workshops were also useful platforms to provide crucial information to small enterprises. Outcome Four: Scaled-Up and coordinated support for SMMEs, Co-operatives, Village and Township Economies The revised 2019-24 MTSF has set the SBD Portfolio a target to establish 100 incubators by 2024. At the end of 2023/24 financial year, through Seda, 110 incubation centres have been established across 15 economic sectors in nine provinces. During the reporting period, these incubation centres created 1 176 jobs, supporting over 3 803 SMMEs. An impact evaluation of the Incubation Support Programme was conducted during the year under review and improvement plan was approved by the DSBD EXCO. During the 2023/24 financial year, the Department also monitored the Incubation Support Programme Improvement Plan and produced two monitoring reports on the Incubation Support Programme improvement plan, which were also approved by the DSBD EXCO.

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Department of Small Business Development • PERFORMANCE INFORMATION • Part B