SMD

Annual Report 2023/2024

Matters raised by the Portfolio Committee Department’s response Non-financial support The DSBD provided workshops to 321 co-operatives as part of non- financial support to co-operatives during the financial year 2022/23:

% There were workshops conducted which focused on awareness campaigns on the Co-operatives Development Support Programme (CDSP). To popularise the CSDP, the Directorate plans to organise/facilitate/host several awareness/outreach campaigns across the nine provinces of the country. These campaigns also provide a platform for other stakeholders to make presentations on their product offerings, contributing to non-financial support. % The workshops happened in the 5 provinces – Limpopo, Gauteng, North West, KwaZulu-Natal and Eastern Cape and further categorised in terms of rural/ urban co-operatives members, number of females, male, youth and persons with disabilities’ attendees as well as the date of the intervention.

In the current financial year there is a target of exposing 200 SMMEs and Co-operatives to global market opportunities. To date, within the 2023/24 financial year, 183 have been exposed to global market opportunities. Through the Market Linkages Programme, the Department linked SMME/Co-operatives’ products to the local retailers and/or wholesalers, see Annexure B..

The process of appointing the Advisory Body is underway. There necessary documentation and the concurrence with other relevant government departments has been sought. This has paved the way to go through the process as mapped out in the legislation before the Advisory Body can be appointed.

One of the Department’s five-year targets is to increase participation of SMMEs and Cooperatives in domestic and international markets. The Department had set itself a target of 1000 products in its five-year plan.

While for the 2022/23 financial year it is committed to ensuring that 250 products produced by SMMEs, and Co operatives are linked to domestic market. For the period under consideration the Department reports that the target was exceeded by 31 products, slightly less from 288 attained in 2021/22 period.

The Committee commended the Department for beginning the process of establishing the Small Business Advisory Body in accordance with the Act’s requirements in its 2022/23 annual performance plan. Since the fifth Parliament, the Committee has been making this

suggestion because it firmly believes that the Department requires an experienced, impartial, and external view on problems relevant to small business development. Regrettably, no action has been taken to fulfil this

commitment. Instead, the same promise is included in the current 2023/24 APP, but there are no stated timeframes for when the Advisory Body appointment process will begin. The Committee further acknowledges that the

recently tabled National Small Enterprise Amendment Bill is making provision for the Advisory Body to submit its performance report to the Minister. The Committee is adamant, however, that the proposed amendment

does not prevent the Minister from proceeding with the appointment of the Advisory panel.

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Department of Small Business Development • GOVERNANCE • Part C