Manamela backs small business growth in post-budget push

By Tarryn-Leigh Solomons

Deputy Minister Buti Manamela has reaffirmed government’s commitment to inclusive economic growth and at a post-budget engagement with small, medium and micro enterprises (SMMEs), held at the Cruise Terminal in Cape Town’s V&A Waterfront on Friday, 4 July.

The strategic dialogue, co-hosted by INSETA, SASSETA and FoodBev SETA, brought together sector education and training authorities, entrepreneurs and government officials, just one day after the Department of Higher Education and Training tabled its R142.4 billion budget for the 2025/26 financial year.

“This budget, and this occasion, are deeply intertwined,” said Manamela. “One speaks to intention. The other, to implementation.”

Backing the backbone of the economy

Manamela emphasised that the budget, which includes R116.4 billion in voted funds and R26 billion from the Skills Development Levy, is aimed at advancing education, skills development and transformation, especially for young people, women and small business owners.

Key allocations include:

• R14 billion for TVET Colleges (rising to R14.7 billion next year),
• R3.1 billion for Community Education and Training Colleges,
• R48.7 billion for NSFAS,
• R96 billion for university education,
• R26 billion for the national skills development system, which increases to R27.8 billion next year.

“These are not abstract numbers,” Manamela said. “They represent potential, opportunity and impact. They represent your businesses, your employees, your communities.”

Skills development as a catalyst for SMME success

With SMMEs accounting for over 60% of employment in South Africa, the deputy minister said the National Skills Development Plan (NSDP) has been aligned to support entrepreneurs and cooperatives under Outcome 6.

The National Skills Fund (NSF) will invest more than R659 million this year into small business support, youth employment and cooperative development. In 2024/25, the department’s procurement spend supported 366 micro and small businesses, allocating over R59 million and exceeding its target by 36%. For the current year, the target has been raised to 50%.

Sector partnerships making an impact

Manamela praised the hosting SETAs(INSETA, SASSETA and FoodBev SETA) for their direct impact on industry skills and enterprise development:

• INSETA invested R40 million, benefiting over 2 500 individuals through bursaries, skills programmes and workplace learning, many linked to small insurance businesses.
• SASSETA disbursed over R100 million through learnerships, internships and graduate placements, enhancing the private security sector.
• FoodBev SETA supported more than 2 900 learners with R106 million, funding training in TVET colleges and universities, artisan development and adult education.

“These interventions aren’t charity,” Manamela said. “They are investments in jobs, dignity and long-term competitiveness.”

Tackling the barriers

Referencing the 2023 Survey of Employers and the Self-Employed, Manamela acknowledged the resilience of South Africa’s informal economy, with nearly 1.9 million businesses in operation, many without access to finance, formal training or licensing.

“Whether it’s a spaza shop in Khayelitsha, a catering co-op in Giyani or a private security start-up in Vosloorus, we must match their determination with institutional support,” he said.

From budget to delivery

Manamela closed by urging stakeholders to ensure that the budget moves from policy to tangible progress, visible in job creation and community upliftment.

“To our SMMEs, we see you. We support you. And we believe in your power to grow this economy, one job at a time.”

He called for ongoing collaboration between government, SETAs and entrepreneurs, proposing that this post-budget engagement become an annual commitment to accountability and action.