Cape Town - The cabinet has approved the merger of several small, medium and micro enterprise (SMME) finance entities.
These are Khula, the SA Micro Enterprise Apex Fund and the Industrial Development Corporation's (IDC's) small business activities, government spokesperson Jimmy Manyi told a briefing on Thursday following cabinet's regular Wednesday meeting.
The merger is subject to approval of the business case by the National Treasury and the public service and administration department, he said.
In line with the new growth path, access to finance for small business is an enabler for creating and sustaining enterprise and jobs.
The current fragmented approach to delivery of finance to small business has resulted in higher overhead costs, limited reach and insufficient impact.
The merger would fall under the auspices of the IDC where it would be better resourced and capacitated.
It would also create the framework for improved support for SMMEs, Manyi said.