South Africa Consolidates Small Business Support with New Amendment Act
The move is part of the government's efforts to broaden economic participation among South Africans by simplifying access to support services for small business owners and entrepreneurs.
PRETORIA, South Africa— President Cyril Ramaphosa has signed the National Small Enterprise Amendment Act, streamlining government support for small and medium businesses in South Africa, writes Winston Mwale.
The new law amends the 1996 National Small Enterprise Act, establishing the Small Enterprise Development Finance Agency (SEDFA).
This entity will merge three existing agencies: the Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA), and the Cooperative Banks Development Agency.
"This consolidation aims to create a one-stop-shop for aspiring entrepreneurs," a government spokesperson said.
The act also introduces the Office of the Small Enterprise Ombud Service, empowered to recommend that the Minister of Small Business Development prohibit unfair trading practices affecting small enterprises.
Additionally, the law grants the Minister authority to set classification criteria for micro, small, and medium enterprises and regulate legislation impacting these businesses.
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