SMD

Annual Report 2023/2024

providing relevant tools, machinery and equipment to informal and micro enterprises as an important intervention for their upliftment. Thus the efforts of the DSBD leading to the popularity of the scheme among these enterprises ultimately resulting in the over-achievement of its stated targets. NIBUS seeks to uplift informal businesses and micro enterprises; and to empower local chambers/business associations and municipal Local Economic Development offices to deliver and facilitate access to upliftment programmes. The priority is mainly on informal and micro business entrepreneurs from designated groups, i.e., women, youth, and persons with disabilities, predominantly in township and rural areas of South Africa. The effectiveness of the programme as experienced by and as attested to by beneficiaries who own and operate informal and micro enterprises within the targeted communities has increased the popularity of IMEDP to the point that the demand for the programme has grown exponentially. This, coupled with the responsiveness of the unit and the officials responsible for its implementation, over-extension of limited human capacity and the availability of funds has led to the over-achievement of targets during each quarter culminating in an impressive indication of the relevance and appropriateness of the IMEDP incentive. The Department further supported 596 crafters through the Craft Customised Sector Programme against the set annual target of 1000. The under achievement was due to delays in finalisation of MOAs, that lead to first payment tranches being made late in quarter two., secondly the two entities (TIKZN and FDC) only claimed first tranches moreover FDC encountered compliance challenges from the 3rd to the last quarter. The department initiated catch up plans which also did not materialised due to the limited time that entities were left with to implement in Quarter four. In conclusion, the Department and its entities continues to facilitate the increase in the number of competitive small businesses with a focus on township and rural economies. The competitive SMMEs and Co-operatives are those SMMEs and Co-operatives supported financially and/or non-financially with the ability to create or sustain jobs. A total of 50 077 competitive SMMEs and Co-operatives were supported by 31 March 2024.

4.3.5. Linking performance with budgets Sub-programme expenditure Sub- Programme Name 2023/2024

2022/2023

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

R’000

R’000

R’000

R’000

R’000

R’000

Development Finance Management

4 762

4 672

90

414

-

414

Model Funding Collaboration

14 192

14 122

70

10 526

9 061

1 465

Blended Finance

754 214

749 685

4 529

1 295 922

1 294 916

1 006

Business Viability

22 828

21 975

853

11 622

11 309

313

Total

795 996

790 455

5 541

1 318 484

1 315 286

3 198

Annual expenditure for Programme Three: Development Finance amounted to R790.5 million (99.3%) against the final appropriation of R796 million, resulting in an under expenditure of R5.5 million (0.7%). Compensation of Employees contributed R4.8 million to the underspending largely due to vacancies. Craft Customised Sector Programme contributed R650 thousand to the underspending as funds were not transferred to Trade and Investment KwaZulu Natal (TIKZN), R300 thousand, as their co funding was withdrawn; and to the Free State Development Corporation (FDC), R350 thousand, due to compliance issues. The main cost drivers of expenditure in the Programme are Transfers and Subsidies at R693 million, Goods and Services at R63.5 million, as well as Compensation of Employees at R32 million. The drivers of expenditure in Goods and Services are inventory for redistribution to IMEDP beneficiaries (R57.5 million), Travel and Subsistence (R3.7 million) and Legal Services (R1.7 million).

Part B • PERFORMANCE INFORMATION • Department of Small Business Development

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