Cabinet approves funding policy for small businesses and cooperatives

Cabinet has approved the final funding policy for micro, small and medium enterprises (MSMEs) and cooperatives, for implementation. This is according to the Minister in the Presidency, Khumbudzo Ntshavheni, who addressed the media on Friday regarding the outcomes of the Cabinet meeting, held on Wednesday. 'The policy seeks to eliminate obstacles that prevent MSMEs and cooperatives from obtaining financial support. 'These interventions will also enable seamless transition from informal to formal enterprises and from small to medium enterprises,' Ntshavheni said. The Minister explained that the policy provides for the creation of a funding environment for targeted groups such as youth, women and persons with disabilities. This policy, according to the Minister, also forms part of other interventions to support small businesses, including the National Integrated Small Enterprise Development Framework that was approved by the Cabinet in 2022. 'Government has prioritised support for MSMEs and cooperatives b ecause these businesses create the most jobs and provide the most opportunities for people to earn a living. 'The implementation of the policy will eliminate the credit gap in the MSMEs ecosystem and enable economic growth, which is the priority of government,' she added. Source: South African Government News Agency