South Africa has injected R36 billion into small business loans across the past ten years. Despite this massive financial injection, the national unemployment rate has climbed by a worrying 8% over the same timeframe. This stark contrast raises serious questions about the effectiveness of current support strategies for small and medium enterprises (SMEs)....Click to Read More >>➤

Matthew Parks, the parliamentary coordinator for COSATU, voiced deep concern that the substantial investment has failed to deliver the needed outcomes in either job creation or broader economic growth. He emphasized the sheer scale of the challenge facing the nation.

“Given the high levels of unemployment, slow levels of employment growth, the difficulty of many people accessing capital, it’s not enough,” Parks stated. He acknowledged that the state cannot provide all the funding, but insisted the current efforts are falling short. “Yes, not all of it can come from the state; the private banks have to provide the majority, but it’s really not enough. We are not making an impact in the way we desperately need to.”

Investment Alone Not Enough to Drive Job Growth

Parks clarified that while funding is undeniably critical, it is not a silver bullet. Simply providing access to capital cannot, by itself, guarantee the survival or success of small businesses. He argued for a more holistic model of support that extends far beyond just loans.

“We’ve got to do much more. It’s about capital but also giving support, training, planning for businesses, access to markets, and addressing issues like crime,” he explained. The call is for a more robust and integrated approach. “We have to be much more bold and aggressive in how we put in measures for their success.”

Calls for a Stronger, More Inclusive Support System

COSATU has consistently pushed for a comprehensive national strategy for small business development. This strategy would need to confront deep-seated structural barriers and actively promote sustainable entrepreneurship. Parks’ comments arrive amid escalating worries that South Africa’s existing frameworks are not generating the large-scale employment required to curb the unemployment crisis.

The persistent high unemployment rate remains one of the country’s most critical challenges. Parks insists that a more effective collaboration between government entities and private financial institutions is non-negotiable. Only through a unified and strengthened effort can the environment for sustainable business growth and meaningful job creation be fostered. The focus must remain on building a resilient small business sector capable of driving widespread economic participation. ...Click to Read More >>➤