NAFCOC calls for renewed SME support

The South African economy is facing a crucial conversation around the future of small and medium-sized enterprises (SMEs). With the government's planned increase in Value Added Tax (VAT) looming, concerns are rising about the potential impact on SMEs. Deputy Secretary-General, Mokgotsi Moroenyane from the National African Federated Chamber of Commerce and Industry (NAFCOC) recently discussed these challenges and called for renewed support for SMEs during an interview on CNBC Africa. Moroenyane expressed apprehension about the upcoming VAT hike from 15% to 16% by 2026. He emphasized the importance of affordability for consumers to continue purchasing goods and services from SMEs. The increase in VAT, combined with the current economic climate, poses a significant challenge for SMEs that rely on consumer spending for their survival. Moroenyane urged the government to explore alternative solutions to support SMEs and ensure their sustainability in the face of financial hardships. One of the fundamental issues highlighted by Moroenyane is the limited access to funding that impedes SMEs' ability to procure essential goods and services. Without adequate capital, SMEs struggle to maintain their operations and compete in the market. The Deputy Secretary-General underscored the urgent need for policy changes and greater support from both the public and private sectors to address the funding gap and empower SMEs to thrive. Corporate entities, such as ABSA, have made strides in supporting SMEs through incubator programs and financial initiatives. Moroenyane acknowledged the efforts of such organizations but stressed the need for expanded support and training opportunities for SMEs. He called on all stakeholders, including government and big businesses, to collaborate on developing comprehensive policies that facilitate access to funds, training, and resources for SMEs. By fostering economic and financial inclusion, these concerted efforts can pave the way for sustainable growth and resilience in the SME sector. As the conversation continues, NAFCOC remains steadfast in its commitment to advocating for the interests of SMEs and promoting their long-term success. With a focus on addressing the challenges faced by SMEs and enhancing their competitiveness, the organization calls for collective action and collaboration among stakeholders to build a more supportive environment for small businesses. The road ahead may present obstacles, but with proactive measures and sustained engagement, the future holds promise for the growth and prosperity of South African SMEs.