Chairperson, there are currently two wars that have a major impact on South Africans. The first is the much-publicized war in Ukraine, where Russia has invaded the independent country and is relentlessly murdering its citizens.

This war will have a devastating economic effect on the worlds’ economy, including our own. Ukraine is one of the biggest producers of grain and cooking oil in the world, and the war in Ukraine will translate into rising local prices on these items, which form an already important part of South African households’ ability to put food on the table. Small business owners will be hit hard, as they are forced to react to the rising cost of doing business, while their customers’ ability to spend worsens.

This brings us to the second war that threatens South Africa – the war on poverty, unemployment, and inequality. This war is currently being lost, as unemployment recently soared to 35% by the narrow definition and 46% by the expanded definition. As explained by the President in his SONA address, and widely supported by most parties and commentators, small businesses could be the engine of economic growth that South Africa needs to bring down unemployment, and it therefore becomes critical that government creates an environment for SMMEs to thrive.

The purpose of this budget vote for the Department of Small Business Development is exactly that, to enable the Department to promote the development of small businesses, which it does via various services and its agencies, SEDA and SEFA. As a Department, there are various goals, which most portfolio committee parties and members agree on.

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