EFF statement on government bureaucracy that is destroying SMMEs

21 September 2022

The Economic Freedom Fighters condemns the Small, Medium and Micro Enterprises (SMMEs) bureaucracy that is destroying SMMEs that are in dire need of support to maintain and develop their businesses.

The lying Cyril Ramaphosa, in his State of the Nation Address (SONA) said that he will remove the red tape for SMMEs. It was in this SONA address that he also delegated Government responsibilities when he stated that "The Government does not create Jobs, only Private sector does". However, the same SMMEs that he stupidly said must create jobs on behalf of the Government remain bulldozed with bureaucracy.

To date, SMMEs remain distressed and many are forced to close shop. The ANC Government expects SMMEs that were in the firing line of the COVID-19 pandemic to be productive (and without the necessary support) in order for them to qualify for Relief and Support Funds. This is the senselessness that is the DNA of the ANC Government.

The 900 Cooperatives that applied for Relief and Support Funds were not funded during the 2021/22 financial period. As a result, the budget allocated for Cooperatives was not spent on Cooperatives. Moreover, businesses for People Living with Disabilities were sidelined by Cyril Ramaphosa as none received support.

The Department of Small Business Development was allocated Flood Relief Fund to the tune of R50-Million. To date the applications received to access this funding are 169 of which 32 applications have been declined and 127 have been uploaded for national approval. In other words, the ANC Government has not bothered to pay a single SMME. The downright incompetence of this ANC Government is further evident in its response to the 2021 July Unrest Relief Fund; a lousy 10% out of 15000 SMMEs that applied received funding.

The Minister for the Department of Small Business Development (DSDB), Stella Ndabeni has long proved herself incapable of holding any Ministerial position yet alone a ministry that her President, Cyril Ramaphosa said must create jobs. There is no rocket science required to remove bureaucracy and implement processes and systems that actually assist distressed SMMEs. However, a government led by Cyril Ramaphosa that excels strictly in corruption and incompetency cannot be expected to assist the people it was elected to serve.

Issued by Sinawo Thambo, National Spokesperson, EFF, 22 September 2022