South Africa: Cabinet approves funding policy for small businesses and cooperatives

JOHANNESBURG, October 29, 2024 — The South African Cabinet recently approved the final funding policy for micro, small and medium enterprises [MSMEs] and cooperatives, for implementation.

This was revealed by the Minister in the Presidency, Khumbudzo Ntshavheni, who addressed the local media regarding the outcomes of the Cabinet meeting.

The policy comes in handy to help MSMEs and cooperatives to get financial support. “The policy seeks to eliminate obstacles that prevent MSMEs and cooperatives from obtaining financial support.
“These interventions will also enable seamless transition from informal to formal enterprises and from small to medium enterprises,” said Ntshavheni.

She explained that the policy provides for the creation of a funding environment for targeted groups such as youth, women and persons with disabilities.

This policy, according to her, also forms part of other interventions to support small businesses, including the National Integrated Small Enterprise Development Framework that was approved by the Cabinet in 2022.

“Government has prioritised support for MSMEs and cooperatives because these businesses create the most jobs and provide the most opportunities for people to earn a living.

“The implementation of the policy will eliminate the credit gap in the MSMEs ecosystem and enable economic growth, which is the priority of government,” she added.

Source : SAnews.gov.za

https://thecooperator.news/south-africa-signs-agreement-to-benefit-local-cooperatives/

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