Budget doesn't back up Sona SMMEs pledges

The 2025 State of the Nation Address (Sona) by President Cyril Ramaphosa, alongside Minister of Finance Enoch Godongwana's Budget Speech, ideally should reflect a coherent economic strategy. However, a critical comparison reveals a troubling inconsistency in the government's small, micro and medium enterprises (SMMEs) strategy.

- Phosane Mngqibisa

While the Sona sets a promising tone with targeted support for SMMEs, the Budget Speech fails to back these commitments with adequate fiscal measures, jeopardising inclusive development and economic growth.

In his address, Ramaphosa highlighted the crucial role of SMMEs in job creation and economic transformation. He announced a R20-billion transformation fund to support black-owned and small enterprises over the next five years. The president also stressed reforms in public procurement to ensure equitable access for youth, women, and businesses owned by people with disabilities.

He emphasised support for rural and township enterprises and introduced the Energy Bounceback Loan Guarantee Scheme to protect SMMEs from financial losses due to power disruptions.

If effectively implemented, these commitments could spur entrepreneurial growth, especially in historically marginalised sectors. Unfortunately, such declarations were absent from the finance minister's budget speech, which focused on fiscal consolidation and infrastructure investment bailouts for state-owned enterprises, neglecting SMMEs.