Hon House Chair, hon Ministers, hon Deputy Ministers, hon members and fellow South Africans, over the past few months I have had numerous conversations and engagements with businessmen and businesswomen around the country who have been left with no other choice than to cut staff or cut working hours just to keep their businesses afloat.
What is most concerning about these conversations and engagements is that these entrepreneurs are actively looking at the possibility of leaving South Africa. They are aged between the ages of 25 and 45, cross race, gender and class barriers and are the foundation for future growth of this country. How can we, Minister, simply sit by and watch them go?
There are a few things they have in common: They all started successful businesses that survived the high mortality rate of small, medium and micro enterprises, SMMEs. Their businesses were all started post 1994. They are proudly South African and they all believed in the enormous potential we have as a country. They are highly skilled, driven intelligent individuals who have overcome numerous obstacles to create a better life for themselves, their families, those that work for them and have added value to their
communities. However, across the board, they are worried sick about the direction we have taken as a country over the past few years.
The statistics of youth unemployment in South Africa is wretched, to say the least. Of the youth between the ages of 15 and 24, 55% of them are unemployed. For the youth of ages between 25 and 34, 34% of these South Africans cannot find a job. These statistics are a clear indication of an economy that does not work for the youth of South Africa. This is a further indictment on this national government that has so evidently failed our youth.
Hon Minister, we need economic growth to create jobs and we will only get economic growth if government is willing and able to change the way it is currently operating. What was done by this government over the past 10 years caused the crisis we face in South Africa - insanity is doing the same thing repeatedly and expecting a different result.
Pushing forward populist, quick-fix policies during national conferences will most definitely not get our economy working again.
However, fellow South Africans, what the DA is advocating is definitely not fiction - it has proven results where we govern and
it ensures that the Western Cape remains the best run province with the lowest unemployment rate in South Africa, the least red tape and the highest investment confidence.
We can and we must have the same for the entire South Africa. In most countries across the world, small businesses form the backbone of their economies. In emerging countries and economies, the percentage contribution by small business is climbing significantly, not only in driving the economy but also in addressing unemployment.
We need the same in South Africa, because as you all know - our unemployment rate has increased yet again and now sits at an unacceptably high and frightening rate of 27,6%. This does not really tell the true story as the measurement is only done on those still actively looking for employment. Since 2010, just fewer than 40% of new entrants to the job market couldn't find work.
Big government, big business and big unions dominate the debate, policy formation and defend the status quo. The 1O million unemployed and the millions at risk employed South Africans need brave and bold leadership to kick-start our economy. We need to guarantee private property rights, attract and ensure investors know
that their money is safe by setting clear policy with leaders who do not continually contradict each other.
Small business should be exempt from certain black economic empowerment, BEE, and labour regulations; although this will cause unhappiness amongst the current insiders - this can exponentially help the 10 million outsiders that need us to be proactive and get them into the job market.
In the Select Committee, the Deputy Minister raised the concern of the Small Enterprise Development Agency, Seda, and the Small Enterprise Finance Agency, Sefa, who do not seem to talk to one another. Deputy Minister how is this then a problem and how is it that it cannot be addressed by the Ministry since both entities report to the Minister?
Considering that almost 91% of the Budget goes to transfers and subsidies, 5,9% to staff - the question that begs to be answered is what actual value has and does the department add?
Another example to rise is the question on the effectiveness of the department in respect of the red tape reduction workshops being rolled out by the Department of Small Business Development. In the
previous financial year, only 12 municipalities participated and received such training - whilst in the current financial year, the aim is to cover another 16 municipalities. If we look at the projected 20 for the 2020-21 financial year and consider that we have 278 municipalities in South Africa - it will take this department 17 years to be completed.
Surely this is not good enough, with the department itself saying that SMMEs are at the centre of government's economic growth and development agenda. Therefore, entrepreneurship and business development are an important building block for a growing, sustainable economy. It is apparent that the actions and the words do not speak to one another.
It is also important to ensure that the rollout of such workshops translate into a real difference in the communities it is supposed to serve. It will be a terrible waste of time and money if we do not firstly, monitor to see if the workshops that have been completed by SMMEs are at the centre of government's economic growth and development agenda. Less red tape can result in more businesses starting up, surviving and contributing to the reduction of unemployment. We have asked the Deputy Minister in the Select
Committee that we need feedback on this and look forward to engaging the department on it.
Historically, the survival rate of SMME's have not been promising with a whole range of factors such as access to funding, knowledge of legislation and late payments for services rendered contributing to this.
One aspect that the department is trying to help address is the timeous payment of such businesses. This is commendable and it seems that government departments are improving, however there are still some defaulters, whether this is at a national, provincial or local level, these culprits should be exposed. In light of this, will the Minister ensure that the platform created to report defaulters are open to the public, for all to see and thereby putting extra pressure on all departments to support SMME's in actions?
Since 2005, new ministries, departments and all that goes with it have failed to address the high unemployment and the economic challenges facing South Africa. In fact, all it did was to bloat the Civil Service Bill to the detriment of the millions who remain locked out of opportunities in an economy that contributes to favour only a very few.
In the previous term, we often questioned the feasibility of the Economic Development Department - we, in fact said that it is time this department is disbanded and have its functions delegated to other departments. It seems that the Presidency listened to us and we are glad that government is moving in the right direction by cutting the massive Civil Service Wage Bill.
Hon Minister, this is the reality that you, the President and the rest of Cabinet need to face - our economy is simply no longer working for South Africans. People do not have access to jobs or opportunities for growth. South Africans are being locked out because this government over the past 10 years failed to hear their pleas and their cries. You put them into poverty by allowing a corrupt ex-President to build his state capture network of corruption and theft.
The newly elected President, President Cyril Ramaphosa, has promised a new era of a corruption-free government that will respond to the plight and the grievances of the people. The elections are over. The promises have been made.
Therefore, hon Minister, it is now time for action. It is time for a government that will steer away from quick-fix populist policies
like land expropriation without compensation, the nationalisation of the Reserve Bank and the National Health Insurance.
In conclusion, it is time for a government that will provide policies, legislation and solutions that will create a friendly environment for small businesses to thrive that can result in a job creating economy.
It's time for an economy that works for every time. The time is now. Thank you. [Applause.]