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Home Finance

Limpopo Budget: hope for small businesses

by Moipone Malefane
March 27, 2025
in Finance
Reading Time: 4 mins read
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SMEs happy with Limpopo budget

SMEs happy with Limpopo budget

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By Azwidohwi Mamphiswana

Limpopo SMMEs are optimistic following the announcement of the province’s R88.936 billion budget for the 2025/26 financial year.

The budget, with a strong focus on economic growth, infrastructure and agriculture, is seen as a significant opportunity for local businesses to expand and thrive.

A considerable portion of the budget has been directed toward sectors that directly benefit SMMEs.

Notably, the economic development, environment and tourism department received R2.287 billion in 2025/26, as part of a three-year total of R5.181 billion. These funds are aimed at fostering entrepreneurship, supporting small businesses and enhancing cooperative development.

The province also aims to allocate 30% of procurement to SMMEs, increasing to 70% over time to boost their access to government contracts.

Ndivhuwo Tshirenga, a director of a small manufacturing business, NTG Gamazine Manufactures, shared his excitement.

“Maybe this budget will be a turning point for SMMEs in Limpopo. It offers much-needed financial support and opportunities to participate in government procurement.”

Limpopo’s agriculture sector also stands to benefit significantly from the budget, with R1.910 billion allocated to the department of agriculture and rural development for 2025/26, which is part of a R5.927 billion allocation over three years.

Among the key initiatives is the Revitalisation of Agriculture and Agro-Processing Value Chain (RAAVC), with R132.792 million earmarked for agro-processing projects, offering small-scale farmers and agribusinesses the chance to expand their operations.

Additionally, R10 million has been set aside for the development of Lebonengomo Broiler Houses, benefiting small poultry farmers in rural areas.

Salome Ledwaba, an emerging poultry farmer from the Waterberg District who owns Eggzellent Enterprise, also expressed her optimism.

“The funding for agro-processing and poultry farming will allow us to improve production and create jobs in our communities. This is a huge step in empowering rural businesses.”

The R7.557 billion allocated for infrastructure development will provide opportunities for SMMEs in sectors like construction, logistics and services. Key infrastructure projects in roads and water will improve access to markets, support agricultural activities and create a more conducive environment for businesses to thrive.

Lutendo Muloiwa, a construction contractor who also own a logistics business through Bolt is hopeful for infrastructure funds.

“Focusing on infrastructure funding, I am hopeful that it will open up more opportunities for businesses like mine to grow and money won’t be misused”

In his budget, Ffnance MEC Kgabo Mahoai touched on the improving procurement spending.

“The Limpopo province has made significant strides in procurement spending, with R6.4 billion spent on black-owned businesses, achieving 60% of the 65% Limpopo Procurement Strategy target. Additionally, R2.19 billion was allocated to women-owned businesses, reaching 20.4% of the 25% target. “

Despite this, Mahoai highlighted concerns.

“It is important that the province improves its spending directed at procurement from youth-owned enterprises to change the economic situation and reduce unemployment.”

He emphasised the need for better inclusion of youth-owned businesses to address unemployment and stimulate economic growth.

Limpopo’s R88.936 billion 2025/26 budget offers strong prospects for SMMEs, focusing on agriculture, development and infrastructure. The success will rely on efficient implementation, access to funding and inclusivity for emerging businesses.

Azwi@vutivibusiness.co.za

Tags: Limpopo and SMMEsSMMEs and budgetSMMEs and economic growth
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