DA calls for urgent update on long-overdue Small Business support schemes for beauty, auto and textile sectors
18 May 2020
The Democratic Alliance (DA) will write to the Minister of Small Business Development, Khumbudzo Ntshavheni, to request an update on her Department’s progress on support schemes for eight sectors that are currently buckling under pressure due to the Covid-19 lockdown regulations.
The Minister indicated on 4 May 2020, during a Small Business Development joint committee meeting, that the Department was working on setting up these support schemes and that details would be communicated “soon”.
Minister Ntshaveni promised support for the following eight sectors:
Auto Spares, Auto Fitment Centres, Mechanics and Motor Body Repair Shops in the form of grants and a revolving credit facility;
Bakeries and confectioneries support in the form of grants and a revolving credit facility;
Tradesmen and Artisan businesses or Sole Traders. They will also be able to participate in the public infrastructure program;
Informal Clothing and Textile businesses. The Department will support sewists whilst also creating opportunities for access to markets with options to organise them through secondary cooperatives;
Hairdressers, beauticians and wellness spas. They can become an effective channel to market beauty and personal care products that are manufactured by local businesses;
General hawkers and street vendors;
Professional business services; and
Small-scale manufacturing
Since the Minister’s announcement, these eight sectors have seen nothing of the promised support. These sectors are potentially facing irreparable damage due to the ongoing lockdown, with little to no reprieve in sight. The situation is so dire that hairdressers and beauty salons have threatened legal action to compel Government to urgently reopen their salons.
While Minister Ntshavheni might not consider two weeks a very long turnaround time, it is unbearably long for someone unable to earn an income to put food on the table.
The closure of the economy due to the lockdown means that many South Africans are unable to earn a living. In this time, most business owners simply want the right to earn a living and the opportunity to offer someone else that same right. They do not want to burden the state and become dependent on it. They want to actively take part in building the country’s economy.
Desperate law-abiding citizens simply want clarity so they can try and plan for an already uncertain future. The Department cannot continue to drag its feet while people are desperate and vulnerable.
The ANC government would rather push for the establishment of another new state-owned airline but ignore the plight of hard-working South Africans who now face an uncertain future.
Issued by Zakhele Mbhele, DA Shadow Minister of Small Business Development, 18 May 2020
