Small Business Development Minister Stella Ndabeni on Friday tabled in the National Assembly her department’s R2.9 billion budget for the 2025/26 financial year.
Speaking during the budget vote debate, Ndabeni said the budget reflected their unwavering commitment to the spirit of the Freedom Charter.
“We are building a more inclusive economy that enables youth, women, and communities in townships and rural areas to participate meaningfully in shaping South Africa’s future through Micro, Small, and Medium Enterprise (MSME) development,” she said.
Ndabeni also said R2.4 billion of the budget will be transfers and subsidies to the department’s entities, while the remaining R468 million was meant for compensation of employees at R265 million, R197 million for goods and services, and R6 million in capital expenditure.
“Of the R2.45 billion for transfers and subsidies, the Small Enterprise Development and Finance Agency (SEDFA) receives R1.908 billion (77.9% of the transfers and subsidies). The department manages the remaining R542.6 million, accounting for 22.1% of the total transfers.”
The minister said the department has allocated just R990m in entrepreneurship finance packages to the Development Fund, which is meant for new entrants and higher risk borrowers, and R330m to the Commercial Fund for the growth-ready MSMEs.
“We will launch a new Youth Entrepreneurship Fund, initially capitalised at R300m. This fund is aimed at harnessing the creativity and innovation of our younger generation to contribute to the country’s growth through entrepreneurial ventures,” she said.
“We will launch the new Women Entrepreneurship Fund, also initially capitalised at R300 million, to enable more women to be self-employed as entrepreneurs and small business owners.”
Ndabeni added that R979m in credit guarantees will be allocated for small enterprise borrowers.
“These credit guarantees remain an important part of our offerings, leveraging banks and non-bank financial institutions to take on MSME borrowers that are above their ordinary risk tolerance.”
On township and rural economy development, Ndabeni said they will build 50 small business hubs for entrepreneurs and MSMEs in each district.
“Aligned to local industrialisation opportunities, these will be spread across the townships and rural areas, and will integrate the financial and non-financial services we offer as a portfolio.
“We will also refurbish small industrial parks in four provinces – North West, Mpumalanga, Eastern Cape and Northern Cape,” she said.
Ndabeni also said digital transformation of small businesses will be at the centre, as township and rural enterprises often struggle to get access to reliable and affordable broadband services.
“Through SEDFA and as part of our mandate to finance small businesses, we will support 50 internet service providers across 50 districts to provide the necessary affordable, quality broadband to small enterprises and communities in rural areas.
“This intervention will not only deliver affordable broadband to small enterprises and communities, but will bring ownership of telecommunications infrastructure to people who have never owned such infrastructure before and create jobs for the youth.”
The department will also support two cellphone repair centres in 50 districts.
“We have budgeted R958.7 million over the Medium-Term Expenditure Framework (MTEF), and R310.8 million for 2025/26. SEDFA will also contribute R253 million over the MTEF.”
According to Ndabeni, a total of R543m has been allocated for the Township and Rural Entrepreneurship Programme to empower local businesses in order to drive economic growth and job creation in historically disadvantaged areas.
“We will also roll out Asset Assist, which provides township and rural MSMEs with assistance for productive assets and working capital, allocating R219 million for 2025/26 and R664 million over the MTEF.
“Our Co-operatives Development Support Programme will receive R61.3 million for 2025/26 and R192 million over the MTEF. This programme now integrates both financial and non-financial support for co-operatives.”
A further R125 million has been allocated to increase support for the Spaza Shop Support Fund.
