Open to the Minister of Small Business

Open letter t the Minister of Small Business Khumbudzo Ntshavheni

13 June 2020

Dear Ma’am

Congratulations on the anniversary of your appointment to the Cabinet of the 6th Administration as the Small Business Development Minister. The year has not been without tribulations but the manner in which you handled these and still energetically to introduce new SMME development projects particularly in the time of Covid 19, must be fully acknowledged.

#SASMEF looks over the year with pride yet trepidation. We are proud of our early connection with you at the beginning of your ministry. We thank you for inviting SASMEF to you in your Parliamentary office on 13 June 2019 and our subsequent exchanges of confidence , the pinnacle being December 13, 2019 when you engaged with private sector SMME collaborators and facilitators (enablers) represented across South Africa.

Now as we face your first post Covid19 budget speech, what will we expect?

Since March 2020, most of our messages from you ended with the request “Please give me time to get these relief packages sorted out.” I cannot imagine the challenges this entailed at an administrative level and I am sure it still persists. None of us were prepared for Covid19 because in most aspects we collectively did not have buffer resilience nor were we resource ready financially. Now as we emerge, we must return to matters left unspoken since December 2020.

The appointment of the National Small Business Council being the first constitutional which matter you inherited and which we agreed to amicably resolve at our meeting nearly 12 months ago on 13 June 2019. The pandemic threw us a curve ball, not underestimating the onerous parliamentary and administrative procedures.

This constitutional matter must be set right as soon as possible and I hope before your forthcoming budget speech.

Will the budget speech reflect a new model for SMME Support?

#SASMEF engagement with the sector reveals that hardly anyone expected the COVID19 relief measures to change the trajectory of economic development in South Africa though you made a vigorous attempt by repositioning the Rural and Informal economy at the centre. But as you will admit, this is not the complete systemic change that the economy needs.

It will require old wine skins be scrapped and new containers for new wine. This applies to centers of power, the government and the private sector jointly and severally. But it is government through the legislature that must enable that the new wine is enjoyed by all. Put bluntly, the department of Small Business and Development must be re-purposed. We look forward in your budget speech for hints of this transformation.

In the next few months many demands will be made upon your attention. Many of these you will have to return a blind eye; some there are windows of opportunity but the ONE matter of constitutional non-compliance, outstanding for many years, must now under your watch be rectified. As the SME ACT: “The minister must appoint… the National Small Business Advisory Council”.

#SASMEF looks forward to a relationship of continued trust.

Sincerely

Carl J Lotter