As part of an extended Cabinet, President Jacob Zuma announced the formation of new ministry to foster the development of small business development, under the lead of Lindiwe Zulu.<\/p>\n
“You will recall that we stated in the inauguration address that the economy will take centre-stage,” Zuma said.<\/p>\n
“The development of the small business sector is critical to economic development and transformation.”<\/p>\n
Elizabeth Thabethe was appointed the deputy minister of small business development.<\/p>\n
Zulu told Talk Radio 702 that the first job would be to set the ministry up, \u201cbecause there is no ministry at all\u201d.<\/p>\n
Zulu said she would look at the policy issues as well as the legislative elements, amid concerns of over regulation for small enterprises in South Africa.<\/p>\n
Zulu said that the ministry was formed following consultation and feedback given to the ruling party, the ANC.<\/p>\n
\u201cThe strong feeling was that small and medium enterprises were very important in the building of the economy, but also empowering particularly our own people, black people who have been excluded in the economy of the country.”<\/p>\n
\u201cI will also be looking at what other countries have done, those countries that are successful, how did they get there,” Zulu said.<\/p>\n
The new minister, formerly Zuma’s international relations adviser, said that she would address the support structures for small businesses, both from government and financial institutions.<\/p>\n
\u201cI don\u2019t think this ministry would have been set up to failure; I have no space for failure. I am sure I will be able to fight for this at every level.”<\/p>\n
\u201cAnd when decisions need to be taken, I am going to do my best. Together with my collective, we are going to do our best to make sure that we are seen, we are felt, we are known that we are around. It\u2019s important for the building of the economy.”<\/p>\n
Clem Sunter, an author and\u00a0scenario planning expert,<\/span> <\/span> said that the formation of the ministry represented a green flag for the economy. “If you want to create five million jobs by 2020, you have got to create one million new enterprises,” he said.<\/p>\n Sunter noted that Trevor Manuel, following is announcement of the National Development Plan, said that 90% of the jobs needed to meet NDP targets by 2030 would be created by small business enterprise.<\/p>\n “It\u2019s the absolute core of the economy over the next 20 years,” Sunter said.<\/p>\n South African Chamber of Commerce and Industry (Sacci) said it welcomed the new Ministerial appointments and the creation of a Small Business Ministry, adding however, that it remains concerned about the interventionist tone of recent official statements.<\/p>\n “Sacci will be an active partner toward an improved economic and investment environment but remains of the view that this must be predicated on lower levels of state interventionism,” CEO Neren Rau said.<\/p>\n “We welcome the SME Ministry which was high on Sacci\u2019s wish list. Sacci has, and will continue to engage towards an SME Department that serves the development interests of SMEs and the economy.<\/p>\n “This would be include simplifying the SME regulatory environment, reviewing and expanding incentives for SMEs, championing the cause of SMEs with other government department and the Presidency vis-\u00e0-vis policy development,” Sacci said.<\/p>\n Department of SMEs likely: ANC<\/strong><\/a><\/p>\nMore on South Africa’s government<\/h3>\n