New ministry for SA small businesses

Minister Lindiwe Zulu was sworn in by deputy chief justice Dikgang Moseneke last month.

Minister Lindiwe Zulu was sworn in by deputy chief justice Dikgang Moseneke last month.

South Africa’s highly-anticipated first small business development minister Lindiwe Zulu carries the hopes of millions of small business owners on her shoulders, after President Jacob Zuma appointed her to this new ministry as part of his second-term cabinet.

Zulu, a former special adviser to the president for international relations, who has admitted to not having much experience in the small business sector, says she plans to focus on making conditions more conducive for the growth of small business owners.

It was unclear how she planned to do this as she was still in the process of setting up the small business ministry when Small Business Connect spoke to her three days after her appointment.

Media reports and social media comments were full of requests from business owners and business organisations appealing to her for assistance in reducing regulatory burdens that they believe are hindering growth in the sector.

Zulu stressed that she would draw on the experience of her deputy minister Elizabeth Thabethe as well as programmes, policies and studies conducted by the Department of Trade and Industry (DTI) and the Department of economic development, which were the previous custodians of small business.

Thabethe is also the former DTI deputy minister.

“I won’t be starting from scratch. I want to look at the challenges that the current programmes and policies face and the results of the studies so that we can address (these problems).

“I have to sit down with the other departments and we have to move everything that has to do with small businesses to the new ministry.

However, these departments will still play a role in the small business sector,” Zulu said, reluctant to elaborate further as the ministry was still in the process of being set up.

She says she also plans to listen to what small business owners are saying.

“The reason government is setting up this department is because small business owners were calling for it. They have been saying they need special attention and government recognised that small businesses play an important role in the economy and job creation. I have already taken calls from a few small business owners in the last few days,” says Zulu.

She believes that her past travels through Africa will assist her in her current position.

“My experience while travelling to different African countries is that these small business owners are able to operate without as much assistance as our small businesses and they still perform better and grow faster,” she said. Zulu believes that this is due to small business owners not being able to compete with big retailers in South Africa.

In general the response to the creation of the new ministry has been positive. The South African Chamber of Commerce (Sacci) welcomed the appointment of the minister which they say was high on their wish-list, but added that they are concerned about recent official statements which they termed “interventionist”.

A statement released by Sacci advised that it would “engage a department that serves the development interests of small business and the economy.

This would include simplifying the regulatory environment, reviewing and expanding incentives and championing the cause of small businesses with other government departments and the Presidency vice versa policy development.”

The ministry was also welcomed by the South African Small Medium Enterprises Foundation who released a statement saying that it looked forward to co-operating with and assisting the minister in setting up the department as soon as possible.

 

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  • Johan Conradie

    This new Ministry is good news for SA! Small business has a very important role to play in our local economy, especially for the potential which it might unlock in the so called informal sector and the spin-offs it might have for community development.
    The crucial success factor is going to be training in entrepreneurship! Please empower people first by means of training before creating and involving people in actual opportunities. Without relevant training the opportunity will die a fast death. Best of luck Minister Zulu.

  • kkanu

    Our prayers has been answered at long last! Welcome Minister.. but may i remind you that this by no means is an easy task. Gloves must be off, toes must also be stepped ..especially toes of labor unions. But with steel determination…we will succeed. I am not a complete fan of President Zuma.. but this is one of his best decision. It is now up to you minister.

    • http://www.ChristoffOosthuysen.com/ Christoff Oosthuysen

      It is indeed a big task to start a new department. Our best wishes to all the officials working on this and of course to Minister Zulu in leading the way!

  • Isaac

    Hi how do I list my product with Pick n Pay?

    • Heather Muchemenyi

      I could give you some advice but it comes with a fee!

  • Isaac

    Dear Minister Zulu
    How is my Business going to benefit from SBD ?As Im in the Manufacturing sector.I have been to DTI,MEGA,Standard Bank even the are my bank for Funding but nothing,

  • Heather Muchemenyi

    Great decision made there. Congratulations, Minister. I would like to assist in rolling out this plan starting from the grassroots level. I am an African and understand the continental problems but can offer world class solutions. Please contact me.

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