Zuma's doing business

Johannesburg - President Jacob Zuma’s government is making steady progress in paying small businesses which provide it with goods and services within 30 days of them having completed the jobs.

The Public Sector SMME Payment Assistance Hotline, which started operating last September, helps facilitate the payments. It has already disbursed R40m in delayed payments to 3 100 small businesses. Only 250 of the businesses that called the hotline are still owed money.

City Press polled business organisations to take their pulse on the first anniversary of the Zuma administration.

"The emphasis on better delivery and greater accountability is welcomed, but faster progress needs to be made in spheres that seriously matter to economic performance, such as state-owned enterprises and local government efficiency,”"said Business Unity SA CEO Jerry Vilakazi.

Another success the business community points to is the establishment of the BEE advisory council – but business people are not satisfied with the lack of clarity on policy and coordination.

"The lines are blurred and it is easy for the trade and industry department, the National Planning Commission, economic development and the national treasury to interfere with each other’s duties," said Eskom economist Mandla Maleka.

He said even the government’s policy proposal to incentivise companies hiring youth had not yet been drafted, despite the treasury’s promise to release it in March. 

Maleka noted that strongest growth in the economy had been in the services sector, an industry in which most youth could not get jobs due to its demand for skills.

"The economy needs to be developed so that more youth can easily become artisans, teachers and nurses," Maleka said.

Small business analyst Khethiwe Kubheka said government support for youth-owned small businesses was in a state of paralysis.

"The National Youth Development Agency (NYDA) has existed for 11 months, but the organisation is yet to offer funding to young entrepreneurs," said Kubheka.

She said service providers that worked with the NYDA’s predecessor, the Umsobomvu Youth Fund, were going belly-up as the NYDA appeared to have suspended servicing small businesses.

"Money is being spent on the agency’s operations but not on funding youth-owned businesses," said Kubheka.

Foundation for African Business and Consumer Services president Mxolisi Zwane said the government needed to consult small business chambers before forming institutions like the planning commission and the BEE advisory council, because they had an effect on small businesses.

Cosatu president Sidumo Dlamini said Zuma’s government had failed to prevent high job losses, despite evidence the recession was going to pose major challenges. 

Dlamini said ways should have been found to avoid the high electricity tariffs, especially for the poor.

"With consumer demand shrinking, how are companies expected to afford the high electricity prices without retrenching workers?" he asked.

Dlamini said the government’s training layoff scheme programme, created for upskilling the retrenched, is a disaster as it had absorbed only 15 000 people while 833 000 jobs had been lost.

Dlamini said Zuma had led a smooth transition to a new government, especially after the formation of new departments and the employment of inexperienced ministers.

 - City Press