Committee concerned about lack of coordination
The Portfolio Committee on Small Business Development is concerned about the lack of coordination among government departments that are running programmes which could benefit small, micro and medium-sized enterprises (SMMEs) and cooperatives.
Four Departments, Water and Sanitation; Energy; Transport; and Telecommunications and Postal Services, appeared before the Committee on Wednesday to report on the progress made towards signing a Transversal Agreement with the Department of Small Business Development (DSBD).
The agreement will assist SMMEs and cooperatives because the government has committed itself to develop them through public procurement and infrastructure expenditures. The Committee could not believe that not a single department from the four that were invited has signed a Transversal Agreement with DSBD on market access and infrastructure support.
The Committee therefore pointed out that the Minister of Small Business Development, Ms Lindiwe Zulu, should lead a process of signing Transversal Agreements with other departments to facilitate an integrated development approach of SMMEs and cooperatives.
Committee Chairperson Ms Ruth Bhengu said the four departments that appeared before the Committee have enormous opportunities with disintegrated and uncoordinated programmes, resulting in duplication of resources.
She further said that development of SMMEs and co-operatives will yield job creation, poverty reduction and address inequality.
“We recommend that the Department of Small Business Development should go and develop guidelines for development of small businesses and co-operatives. This will avoid creating super rich individuals at the expense of extremely poor communities,” Ms Bhengu said.
Enquiries:
Justice Molafo (Mr)
Parliamentary Communication Services
Tel: 021 403 8444
Cell: 081 424 7481
E-mail: jmolafo@parliament.gov.za
