Rustenburg - The R20 billion allocated to support small businesses in not enough, the National African Federated Chamber of Commerce and Industry (Nafcoc) in North West said on Wednesday.
Spokesperson Tshepang Ramosepele said they welcome the bounce-back scheme as announced by Finance Minister Enoch Godongwana but, believes it is too little.
"We believe that the R20-billion allocated to support small businesses is nowhere near enough, considering the number affected due to Covid- 19. We believe that at least R100 billion should have been allocated to not only resuscitate businesses that were severely impacted, but also provide capital for start-ups to create more new jobs," Ramosepele said.
In his budget speech, Godongwana announced the bounce-back scheme to support businesses in distress owing to the Covid-19 pandemic.
The bounce-back scheme would also be available to qualifying non-bank small and medium finance providers.
He said the new business bounce-back scheme would be launched, using two mechanisms which would be introduced sequentially.
"Firstly, small business loan guarantees of R15 billion will be facilitated through participating banks and development finance institutions. This allows access for qualifying non-bank small and medium loan providers.
"Government will partner with loan providers by underwriting the first 20 percent of losses for banks and other eligible small and medium loan providers...This mechanism will be launched and operational next month," Godongwana said.
Ramosepele said South Africa needs to rapidly create sustainable jobs to alleviate pressure on the social grants.
"Our concern is that the bulk of the money spent through social grants ends up in the hands of the multinationals who own the means of productions and the economy, thus making them wealthier. More support to small black business mean the complexion of ownership of the economy will diversify."
He said the national government should dump the ‘comradely approach’ when dealing with delinquent municipalities who owe services such as water and electricity.
"Municipalities currently own Eskom more than R45 billion which, if paid, would improve the services the utility provides. We are however encouraged by the steady progress made by Eskom in stabilising the electricity supply in the country.
"The reported sharp increase in their profit is positive sign that the new management is turning the tide around. We hope that this trajectory will continue and translate to cheaper electricity in the long."
IOL