Lindiwe Zulu on the role SMMEs in driving SA’s growth

South Africa's small and medium enterprises sector has been at the forefront of economic development in the past five years, thanks to the efforts of outgoing Minister of Small Business Development, Lindiwe Zulu. In a recent interview with CNBC Africa, Zulu emphasized the importance of SMMEs in driving economic growth and addressing the country's challenges of poverty, unemployment, and inequality. Zulu highlighted that the focus on SMMEs has empowered many individuals to start and run their own businesses, particularly for black-owned, women-owned, and youth-owned enterprises. The government's support, both financial and non-financial, has played a crucial role in uplifting these businesses and integrating them into the mainstream economy. However, Zulu pointed out a significant gap in private sector support for SMMEs. She stressed the need for companies to open up opportunities for small and medium enterprises, especially those owned by historically marginalized groups. Zulu emphasized that government attention and collaboration with the private sector are essential for the sustained growth of SMMEs. Looking ahead, Zulu outlined key strategies to enhance support for SMMEs in the coming years. She emphasized the importance of coordination and collaboration within the government to ensure a unified approach to supporting small businesses. Zulu also highlighted the need to strengthen local economic development offices to provide accessible support to SMMEs, cooperatives, and informal businesses. One of the pressing issues facing small businesses is late payments by the public sector, which can significantly impact their cash flow and survival. Zulu acknowledged this challenge and mentioned initiatives to improve payment processes, such as requiring government departments to pay SMMEs within 30 days and implementing naming and shaming tactics to ensure compliance. Regarding the organizational structure of the small and medium business portfolio, Zulu advocated for maintaining a standalone department while fostering collaboration within the economic cluster. She emphasized the need for a common understanding across various departments, including treasury, trade and industry, and international relations, to effectively support SMMEs. In conclusion, Zulu reiterated the critical role of SMMEs in South Africa's economic development and emphasized the need for continued government and private sector support to empower small businesses and drive inclusive growth. By prioritizing SMMEs and fostering collaboration across sectors, South Africa can pave the way for a more inclusive and robust economy.