More than 180 000 SMEs are set to benefit from funding of more than R2,5 billion from the government this year.
President Cyril Ramaphosa announced this during the 2026 State of the Nation Address (SONA) in Cape Town on Thursday.
“This year, we will provide more than R2.5 billion in funding to over 180,000 small and medium enterprises, and extend a further R1 billion in guarantees.”
Ramaphosa used his 2026 State of the Nation Address in Cape Town to outline a broad economic reform package aimed at supporting small businesses, farmers, manufacturers and emerging industries, as the government seeks to stimulate growth and reduce unemployment.
Ramaphosa said confidence in the country’s economic trajectory is improving.
For small and medium enterprises, this broader economic confidence is critical, as access to markets, finance and investor partnerships often depends on overall macroeconomic stability.
Placing SMEs at centre of job creation
Placing SMEs at the centre of job creation, Ramaphosa said expanding small business employment could significantly reduce unemployment.
“If every small and medium business in South Africa could employ one additional person, we would create 3 million new jobs,” he said.
However, he acknowledged structural challenges facing SMEs.
“But many of these businesses, a number of which are owned by women and young people, cannot get funding to start or to grow. Many struggle to find markets for their goods and services. And nearly all small and medium enterprises have to contend with a multitude of regulations, bylaws, licensing requirements and bureaucratic hurdles.”
Regulatory reform to ease access to finance
Ramaphosa further committed to regulatory reform to ease access to finance.
“We will amend the National Credit Act regulations to make it easier to access credit at a lower cost.”
Addressing concerns around red tape, he said the government had taken public submissions seriously.
“We take seriously the public comments on the draft Business Licensing Bill, and will ensure that the final Bill makes it easier, not harder, to start and run a small business in South Africa.”
For SMEs, the scale, accessibility and distribution of the R2.5 billion allocation will be a key indicator of whether the government’s commitments translate into real growth and job creation on the ground.
