Minister Stella Ndabeni has launched a powerful plan to help small businesses all across South Africa grow and thrive. With nearly R3 billion set aside, her roadmap supports over a million micro, small, and medium enterprises through funding, training, and new technology access. She wants to break down old barriers that kept many entrepreneurs, especially in rural areas, from succeeding. By investing in skills, assets, and digital tools, the plan lights a bright path for local makers and dreamers to build stronger communities and a fairer economy for everyone.
What is Minister Stella Ndabeni’s plan to support small businesses in South Africa?
Minister Ndabeni’s 2025/26 roadmap focuses on inclusive economic growth by investing R2.918 billion to support over 1.1 million MSMEs through funding, skills training, asset acquisition, digital access, and regional equity, aiming to overcome structural barriers and boost entrepreneurship nationwide.
The Spirit of Enterprise: Stories from the Heart of South Africa
From the rural landscapes of Limpopo to the bustling streets of Soweto, South Africa’s entrepreneurial energy weaves itself into the daily life of the nation. The country’s future, as Minister Stella Tembisa Ndabeni recently highlighted in her 2025/26 budget speech, resides not only in large corporations but in the hands of millions of small business owners. These are the makers, dreamers, and innovators – individuals whose stories illuminate a path toward inclusive prosperity.
Minister Ndabeni personalized her address, shining a spotlight on the men and women who are redefining what’s possible in their communities. Mr. Mubeen Ebrahim’s Wonder Snacks, now found in major retailers, exemplifies local innovation and ambition. The Jacobs family’s Jacob Jams, grown from home-based tradition into a brand supported by mentorship, speaks to the potential of artisanal craft when paired with modern support. Meanwhile, Ms. Ntombi Nonxuba’s Rise Apparel and Mr. Abdul Rashid Ebrahim’s work in steel demonstrate the diversity of South Africa’s entrepreneurial spirit, each overcoming barriers often ignored by the formal economy.
The Minister drew inspiration from periods of cultural and social transformation throughout history. She likened today’s small business drive to the surges of creative output during the Harlem Renaissance and rooted it deeply in the ethos of the Black Consciousness Movement, where self-determination and dignity took center stage. In this narrative, small businesses stand not only as economic contributors but as cultural pioneers, helping recalibrate the identity and potential of their neighborhoods.
Overcoming Barriers: Confronting Structural Challenges
Despite their promise, South Africa’s entrepreneurs often contend with significant hurdles. Minister Ndabeni directly addressed the persistent absence of opportunity in townships, rural towns, and villages – spaces still shaped by patterns of exclusion dating back to apartheid’s spatial legacy. Limited access to funding, markets, and targeted policy attention has left many businesses at the margins, perpetuating cycles of underdevelopment and missed economic potential.
These obstacles represent more than unfortunate circumstances; they reflect deep-seated structural issues, ranging from the lingering effects of exclusionary planning to global economic volatility. The Minister emphasized that redress requires more than acknowledgment; it demands a reimagining of where and for whom opportunity flows. Her call to action was unequivocal: to move small businesses from the periphery to the core of national economic strategy.
Minister Ndabeni underscored the importance of global collaboration and learning. She referenced recent international gatherings, such as the StartUp20 and Global SME Ministerial meetings, where policymakers from 62 countries affirmed the centrality of micro, small, and medium enterprises (MSMEs) to economic resilience. In uncertain times marked by global protectionism, MSMEs provide flexibility, adaptability, and the promise of broad-based growth.
Investment and Equity: The 2025/26 Budget in Action
Turning policy into practice, Minister Ndabeni’s budget speech laid out a robust and ambitious framework for supporting MSMEs and co-operatives. The Department of Small Business Development, through SEDFA’s Development and Commercial Funds, will back more than 1.1 million MSMEs and co-operatives over the medium term. Funding will reach nearly 620,000 businesses via the Development Fund, while the Commercial Fund will focus on helping 34,000 growth-oriented enterprises scale up. Additionally, 7,000 MSMEs will benefit from credit guarantees that leverage both traditional banks and innovative non-bank lenders.
Financial assistance is only one facet of the plan. The department will provide nearly 560,000 MSMEs with pre-investment support – including skills training, incubation, and guidance on becoming formal businesses. Another 180,000 businesses will access coaching and mentoring after they receive funding, ensuring that knowledge and capital go hand in hand. This approach echoes the Bauhaus philosophy, blending practical support with creative guidance to build sustainable, innovative ventures.
Equity and fair distribution stand at the core of the allocation strategy. No longer will metropolitan hubs like Gauteng and Cape Town absorb the majority of resources. Instead, provinces such as the Eastern Cape and Limpopo will each receive R118.8 million, signaling a determined shift toward under-resourced regions. KwaZulu-Natal, the North-West, Mpumalanga, and the Northern Cape will also benefit from increased investment, reflecting a commitment to close the geographic gap in opportunity. The Commercial Fund, targeting more established businesses, will inject R261.36 million this year, with projections of nearly a billion rand over the medium term. While urban provinces maintain a lead due to advanced project pipelines, rising investment in rural areas marks a move toward greater balance.
Building a Holistic Ecosystem: Assets, Skills, and Digital Access
The government’s support extends beyond finance, recognizing that sustainable growth depends on a comprehensive ecosystem. Through the Asset Assist Programme, the department will invest R206 million in 2025/26 to help township and rural MSMEs acquire productive assets. Providing modern equipment enhances efficiency and product quality, much like past technological revolutions transformed industries elsewhere. The District Development Model ensures that this assistance addresses the specific needs of different localities.
South Africa’s ubiquitous spaza shops – informal convenience stores that form the backbone of many communities – stand to benefit from a dedicated support fund. With over 10,000 applicants, the Spaza Shop Support Fund illustrates the sector’s scale and importance. These businesses, often operated by families or individuals, need more than funding; they require help with compliance, formalization, and business skills to thrive in an evolving market.
Targeted sector programs add further depth to the department’s strategy. R100 million will strengthen co-operatives, while R12.38 million is earmarked for the creative industries, supporting local artisans and crafters across multiple provinces. The Informal Micro Enterprise Development Programme, with a budget of R36.7 million for 15 districts, will provide essential tools and equipment to micro-businesses that straddle the border between the informal and formal economy.
Infrastructure investments will anchor these initiatives. The creation of small business hubs – supported by R958.7 million over the medium term – promises to bring together financial services, training, and digital resources, fostering community-based economic resilience. These hubs echo the multifunctional centers of industrial Europe, where commerce and social life intermingled to build stronger local economies.
Bridging the digital divide also features prominently in Minister Ndabeni’s blueprint. SEDFA will support 50 internet service providers across as many districts, helping entrepreneurs in remote areas access online platforms and global markets. Digital connectivity has become essential for business growth, and this initiative aims to ensure that no community is left behind.
Towards a Shared Future: Partnership, Dignity, and Possibility
Minister Ndabeni’s 2025/26 budget, totaling R2.918 billion with 84% dedicated to transfers and subsidies, stands as both a pragmatic and visionary response to the country’s development needs. Her approach combines data-driven planning with a profound empathy for the lived experiences of South Africa’s small business owners.
Throughout her address, the Minister consistently emphasized the potential of South African entrepreneurs. She acknowledged the real obstacles they face but insisted on their agency, inventiveness, and determination. Their stories – woven through the daily fabric of township markets, family-run enterprises, and emerging regional industries – hint at the emergence of a new social contract based on partnership, respect, and cooperative effort.
To witness a spaza shop owner balancing the books at day’s end, or watch a family label fresh jars of jam, is to glimpse the untapped energy fueling South Africa’s economic transformation. These small, persistent actions form the groundwork for a more inclusive and dynamic national economy. Minister Ndabeni’s vision, backed by targeted investment and an ethos of solidarity, aims to ensure that this energy flourishes, shaping a South Africa where every enterprise – no matter how modest – can help define the nation’s future.
FAQ: South Africa’s Small Business Renaissance and Minister Stella Ndabeni’s Roadmap
What is the main goal of Minister Stella Ndabeni’s plan for small businesses in South Africa?
Minister Ndabeni’s plan aims to foster inclusive economic growth by supporting over 1.1 million micro, small, and medium enterprises (MSMEs) across South Africa. With nearly R3 billion allocated in the 2025/26 budget, the plan provides funding, skills training, asset acquisition, digital access, and regional equity. It seeks to break down historic barriers – especially in rural and township areas – that have limited entrepreneurial opportunities, ensuring a fairer and more resilient economy.
How does the plan address the challenges faced by entrepreneurs in rural and township areas?
The plan confronts structural obstacles such as limited funding, poor market access, and exclusionary spatial planning rooted in apartheid history. It increases investment in under-resourced provinces like the Eastern Cape, Limpopo, KwaZulu-Natal, and others, moving resources beyond traditional urban hubs. Programs like the Asset Assist Programme and the Spaza Shop Support Fund specifically target township and rural MSMEs to provide equipment, compliance support, training, and digital connectivity, helping these businesses formalize and grow.
What types of support will small businesses receive beyond financial assistance?
Beyond funding, the plan offers nearly 560,000 MSMEs access to pre-investment support including skills training, business incubation, and formalization guidance. About 180,000 enterprises will benefit from post-funding coaching and mentoring. Digital inclusion is also a priority, with support for 50 internet service providers serving remote districts to bridge the digital divide. Additionally, investments in small business hubs and sector-specific programs (like for cooperatives and creative industries) aim to nurture a holistic ecosystem for sustainable growth.
How does the plan ensure equitable distribution of resources across South Africa?
Equity is central to the plan’s design. While urban provinces like Gauteng and Cape Town continue to receive support due to existing infrastructure, significant funding is dedicated to historically marginalized regions. For example, the Eastern Cape and Limpopo each receive R118.8 million. The allocation strategy promotes regional balance by directing investments into rural areas and smaller towns, helping to close geographic and economic gaps that have long hindered inclusive development.
What role do small business stories and examples play in this initiative?
Minister Ndabeni highlights inspiring stories from entrepreneurs such as Mr. Mubeen Ebrahim of Wonder Snacks, the Jacobs family with Jacob Jams, Ms. Ntombi Nonxuba’s Rise Apparel, and Mr. Abdul Rashid Ebrahim’s steel enterprise. These stories exemplify how local innovation, when combined with mentorship and support, can transform small ventures into thriving businesses. They also illustrate the cultural and economic vitality of South Africa’s small business sector, which is seen as a driving force for community development and national identity.
Why is digital access and technology a focus of the small business support plan?
Digital connectivity has become essential for modern business growth, enabling access to markets, financial services, and global networks. The plan supports 50 internet service providers across various districts to ensure entrepreneurs, especially in remote and underserved areas, can benefit from online platforms. Providing access to digital tools helps MSMEs improve efficiency, reach customers, and compete more effectively, thus playing a crucial role in building a resilient, future-ready economy.
If you want to learn more, visit the Department of Small Business Development website or follow updates on local economic initiatives supporting MSMEs nationwide.
