By Excel Fongoma
The recent State of the Province Address by North West premier Lazarus Kagiso Mokgosi highlighted key economic development initiatives, including the establishment of a R24 million Development Fund to accelerate growth and job creation.
However, despite its broad focus, some small business players feel the speech failed to explicitly outline direct funding and support for the sector.
“SMMEs serve as the backbone of local economies, driving job creation, innovation and economic diversification. Yet the premier’s address did not provide clarity on how the new fund would assist small businesses struggling with financial constraints, market access, and operational challenges,” said Thato Mokhele, the owner of The Spear SA clothing company.
Katlego Mogopodi, who is the founder of Mogopodi Adventures and the chairperson of the Black Management Forum Young Professionals in the province, said the speech needed to focus on direct interventions to support SMMEs.
Although SOPA did not specify new allocations for SMMEs, previous provincial budgets suggest that tourism and agriculture remain priority sectors.
In the 2024/2025 financial year, the government allocated R91 million for agricultural infrastructure backlogs, benefiting over 800 farmers, R77 million to support farmers with livestock, feed and medication, including a goat massification project that distributed 1,734 goats to 81 farmers, and R50 million to improve roads around Pilanesberg, with further infrastructure investments planned in the future.
“While these initiatives indirectly benefit some small businesses, SMMEs in tourism and agriculture require direct financial assistance, capacity building programmes and incentives to thrive. Without targeted interventions, entrepreneurs risk being excluded from economic opportunities, limiting the province’s overall growth potential,” said Mogopodi.
Also, infrastructure projects alone will not drive inclusive economic growth. For North West’s small businesses to succeed, they need direct access to funding through grants or low-interest loans.
They require business mentorship programmes to develop entrepreneurial skills, public-private partnerships that provide SMMEs with supply chain opportunities, and a streamlined process for accessing government support programmes, said Mpumelelo Sigudu, who owns Mpumelelo Project Construction.
The Development Fund is a promising initiative but without clear allocation for SMMEs, it risks becoming another broad policy with minimal impact on grassroots entrepreneurship.
The address leaves entrepreneurs with more questions than answers.
Will the fund prioritise SMMEs? How will small businesses in tourism and agriculture gain access to funding and support services? Without immediate clarity, the North West risks missing out on the economic potential of its thriving small business sector.
As entrepreneurs and business leaders push forward with their innovative solutions, it is now up to policymakers to provide the necessary backing to ensure that SMMEs are not sidelined, but instead positioned as key drivers of economic growth.
