The South African Minister of Tourism, Mmamoloko Kubayi-Ngubane, spoke at the SMME Suitability Summit in Sandton on July 30 to share ideas on how to maintain the sustainability of businesses and grow SMMEs in South Africa.
Minister Kubayi-Ngubane spoke about how the economy as a whole must contend with the reality of a rapidly changing business environment brought about by technological changes and advancements.
“New technologies have transformed the way business is conducted and new technologies and innovation pose other challenges that also need discussion and careful consideration in today’s business environment. We must be mindful of the fact that we live in a world that is globalised and globalising.”
The Minister pointed out that securing finance for SMMEs remained a huge challenge, especially working capital. “As a result, the delay in payment for services rendered, especially by government renders, is a threat to the very survival of small businesses.”
To rectify this, the Department of Tourism has introduced the Market Access Support Programme, which aims to reduce the cost burden of participating in selected international trade platforms for small tourism enterprises by improving access to buyers in new and growth markets. It has also partnered with the National Empowerment Fund (NEF) to establish the Tourism Transformation Fund (TTF), a dedicated capital investment funding mechanism to encourage capital investment by majority black-owned investors.
The TTF aims to stimulate accelerated sector transformation and more inclusive growth. It is expected to give rise to a new generation of black-owned youth, women and community-based tourism enterprises. The TTF offers a combination of debt finance and grant funding for new and expanding tourism development projects with majority black shareholding.
In addition, there is the Hidden Gems Programme, a partnership between the Department and SA Tourism to allow SMMEs to exhibit at local trade shows, Meetings Africa, WTM Africa and Africa’s Travel Indaba.
“As government, we are operating within a constrained fiscal environment and we are mindful that these initiatives do not go far in getting us where we want to be. In this regard, we challenge the private sector to come on board and partner with us so that we can get more and more young entrepreneurs actively and sustainably to participate in the mainstream economy,” says Kubayi-Ngubane.
