Small businesses across the Northern Cape are watching closely after finance, economic development and tourism MEC Venus Blennies-Magage allocated R39 million towards SMME development in the 2025/26 provincial budget.
The funding, which forms part of the broader R23.5 billion budget tabled, aims to unlock township and rural economies that have long been sidelined from formal economic participation.
The department has allocated R18 million to support SMEs ranging from early-stage micro enterprises to high-growth ventures.
A further R12 million has been set aside for the Blended Finance Fund, co-managed with the National Empowerment Fund (NEF).
The Township and Rural Economic Grant Fund has been allocated R9 million.
“Our intention is to support and accelerate township and rural enterprises that are often underfunded and overlooked,” said Blennies-Magage.
“SMMEs are not charity cases, they are the engine of inclusive growth.”
While the announcement has been broadly welcomed, many small business owners are cautious.
Kedibone Mashile, who runs Mashile Catering Company Pty Ltd, said access to provincial funding remained a major barrier.
“Every year there’s money in the budget, but most of us never see it. We submit applications, attend workshops and are left in the dark,” she said.
Letlhogonolo Phiri, who is spokesperson for the Northern Cape Business Forum, said the allocations were necessary, but red tape remained an issue.
“Too many SMMEs are excluded by bureaucracy or pushed aside for politically connected businesses,” he said.
Phiri urged the province to invest in shared infrastructure, transport services and simplified funding processes that reflected the realities of rural entrepreneurs.
According to the department, the R18 million SMME fund would provide financial and non-financial support, including access to markets, compliance support and training.
The Blended Finance Fund, which combines grants and loans, has supported 17 businesses so far and created over 1000 jobs, with R61 million in grant funding leveraged from a total investment of R223 million.
Lethabo Leloko, who owns Letloko Trading Pty Ltd, welcomed the R9 million Township and Rural Economic Grant, but said the amount alone was not enough.
“The fact that only 68 entrepreneurs have benefited so far across five districts shows the scale is still too small. Prioritising youth and women is important, but unless the system becomes more accessible, those who need it most will remain on the margins.
“We are calling for simplified criteria, faster turnaround times and support that doesn’t end after a workshop,” said Leloko.
While these targeted programmes are a boost, the bulk of provincial economic empowerment still happens through procurement.
According to the provincial treasury, black-owned businesses received R3.29 billion (63%) of procurement spend in 2024.
Women-owned businesses received R1.17 billion (22.5%), while youth-owned enterprises received R567.9 million (10.9%).
Critics argue that procurement primarily benefits established players, while smaller businesses are left behind due to compliance hurdles.
Blennies-Magage has committed to quarterly financial reporting to the Northern Cape legislature and promised tighter oversight of municipal development projects, where many SMMEs operate.
