CAPE TOWN - The business sector has urged President Cyril Ramaphosa to keep in mind the immense challenges faced by entrepreneurs in light of the pandemic, recent unrest and the ongoing economic downturn during his State of the Nation Address (Sona) on Thursday.
President of the Johannesburg Chamber of Commerce and Industry, Shawn Theunissen said while Ramaphosa cannot ignore the country’s pressing needs of poverty, inequality and unemployment, he must not forget the needs of entrepreneurs.
“We understand the challenges and needs faced by the president and the government, but ignoring the urgent needs of entrepreneurs will hurt the country,” he said.
Leading data and analytics company GlobalData recently stated that the civil unrest in July, tighter Covid-19 restrictions and supply chain disruptions triggered a contraction in South Africa’s economic growth.
The looting and vandalism in KwaZulu-Natal and Gauteng had ‘devastating consequences’ for several businesses.
“As productivity was disrupted for several days, the subsequent loss has impacted earnings. Most premises and warehouses were subsequently burnt, meaning some key customers could not operate as a result,” said managing director at Shumani Industrial Equipment, Victor Nemukula.
The Matzikama Black Business Alliance called for Ramaphosa to priotitise Small, Medium and Micro Enterprises (SMMEs) development in his Sona.
"The president must prioritise SMME development. One of the issues SMMEs face is access to finance and the red tape that comes with it, which makes it difficult to stay in the market.
“SMMEs are one of the biggest job creators in South Africa, government must prioritise their development."