DA welcomes Department of Small Business Development’s localisation framework for SMMEs

The Democratic Alliance (DA) welcomes the Department of Small Business Development’s SMME-focused localisation policy framework and implementation frameworkThis is the first time that the Department has introduced something constructive that is to the benefit of the small business community in South Africa.

The Department briefed Parliament this week on the localisation framework which will benefit all SMMEs and can be the key factor in creating an export-led economy in South Africa.

The DA has always been a strong advocate for small businesses and have made various recommendations in past to ensure a conducive environment for SMMEs to thrive. For years, we have been advocating for the reduction of red tape which hobble SMMEs and we have also called for the establishment of a Small Enterprises Ombudsman. Unfortunately, these calls have often fallen on deaf ears due to theANC members in the Portfolio Committee on Small Business Development, who chose to prioritise their party over the livelihoods of small business owners and their employees.

The DA is in full support of the proposed drive and will do everything in its power to ensure that the benefits reach every SMME throughout South Africa. We will strive to ensure that, unlike with Broad-Based Black Economic Empowerment policies, not only the insiders of the governing party and their ‘tenderpreneurs’ reap the benefits of the initiative, but that the benefits are harnessed equitably by all entrepreneurs and employees in the SMME industry.

Although the DA supports the Department’s drive fully, we do have some concerns about some of the potentially burdensome red tape that the initiative will create. We urge the Department to ensure that the localisation framework is free from unnecessary red tape and ascomprehensive as the DA’s Ease of Doing Business Bill Private Mmbers Bill. This will ensure that small business truly enjoy the benefits of this project.

Get to know newly elected DA leader, John Steenhuisen, and invest in the 2021 Local Government Election campaign. Click here.