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Cape Town - The portfolio committee on small business development has vowed to exercise stringent oversight over the department following a meeting with Plastic South Africa.
Committee chairperson Ruth Bhengu said in statement issued on Friday the committee has five years to change the business environment in order to make it conducive for the Small, Medium and Micro Enterprises (SMMEs) and cooperatives.
“The committee would use the Money Bills and Budget Review powers as well as a stringent monitoring approach to ensure that the department of small business development and its implementing agencies do not implement the nice-to-do programmes that have over the past 20 years failed to yield positive and meaningful impact on poverty reduction and job creation,” said Bhengu.
She made these remarks when interrogating a presentation by Plastic South Africa, a non-profit company representing the South African plastic industry, including polymer producers, importers, converters, machine suppliers, fabricators and recyclers.
The company appeared before the committee to give a presentation on the case of South African plastic companies on how they plan to assist SMMEs and cooperatives.
According to Anton Hanekom, Plastic SA’s executive director, the plastic industry employs more than 60 000 people and contributes 1.6% to the country’s gross domestic products (GDP).
“It must be noted that the GDP multiplier effect of plastic as a growth driver for the economy is approximately 2.7% and the employment multiplier is 3.5%,” said Hanekom.
In light of the lack of market access and funding for SMMEs and cooperatives in South Africa, Bhengu reiterated that the committee will have to consider establishing legislation that will create a conducive growth environment for the SMMEs and cooperatives, in which they should emulate the Buy American Act and the Buy Brazilian Act of 2010.
