#BudgetSpeech2021: NAFCOC calls for more focus on SME support & growth

The Budget Speech for 2021 has been highly anticipated, with various industries still reeling from the effects of the COVID-19 pandemic. Gilbert Mosena, the Acting President of the National African Federated Chamber of Commerce and Industry (NAFCOC), shared his insights and recommendations for the South African economy in an interview with CNBC Africa. Mosena emphasized the urgent need for the government to prioritize economic growth and job creation, especially focusing on supporting small and medium enterprises (SMEs). He highlighted the challenges faced by informal sector traders, predominantly Africans, who have been severely impacted by the pandemic, leading to business closures across the country. NAFCOC outlined several key recommendations for Minister Tito Mboweni to consider in his budget speech, including a focus on investment promotion, infrastructure development, and youth skills development. Mosena urged the government to allocate funds for COVID-19 recovery and re-industrialization programs, with a specific emphasis on revitalizing abandoned factories in former homelands to support local manufacturing and exports. One of the critical concerns raised by Mosena was the lack of access to funding for SMEs, both from state financing institutions and commercial banks. He highlighted the challenges faced by small businesses in meeting the stringent requirements set by banks and the capacity issues within the Department of Small Business Development in distributing relief funds effectively. In addition to supporting SMEs, NAFCOC called for tax relief and subsidies for industries such as tourism and transport to stimulate economic growth and job creation. Mosena emphasized the importance of collaboration between the government and industry chambers to address the pressing economic challenges facing South Africa. As the country looks towards the Budget Speech for crucial policy direction, stakeholders like NAFCOC are advocating for a strategic and targeted approach to support SMEs and drive economic recovery. The government's commitment to fostering entrepreneurship and innovation through sustainable policies will be instrumental in shaping the post-pandemic economic landscape of South Africa.