Agriculture, Economic Development and Tourism
Question by Hon Masipa.
With regard to the amalgamation of the Small Enterprise Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA) and the Co-operative Banks Development Agency (CBDA) into the single-entity Small Enterprise Development Finance Agency (SEDFA):
Whether he has been consulted on the amalgamation of SEFA, SEDA and CBDA into SEDFA to create a unified entity to service SMMEs; if so, what are the details regarding the envisaged contribution of this amalgamation to the Western Cape economy; if not, what are the reasons why this consultation has not taken place?
Whether he has been consulted on the amalgamation of SEFA, SEDA and CBDA into SEDFA to create a unified entity to service SMMEs
Minister Meyer was not consulted on the amalgamation of Sefa, Seda and CBDA into SEDFA.
if so, what are the details regarding the envisaged contribution of this amalgamation to the Western Cape economy
N/A
if not, what are the reasons why this consultation has not taken place?
The amalgamation process was initiated prior to Minister Meyer’s appointment as the Minister of Economic Development and Tourism. Consequently, Minister Meyer was not included in the consultations undertaken during the initial stages of this process.
**To note: The section below outlines the consultation process followed towards the establishment of SEDFA as understood by the Department of Economic Development and Tourism:
Public hearings by both the Portfolio Committee and the Select Committee were conducted. The notice for the proclamation of all sections of the National Small Enterprise Amendment Act was published in the government gazette on 27 September. In terms of this proclamation notice all sections of the Amendment Act, except section 5 that deals with the establishment of the Ombud, Section 8 that deals with the repeal of the schedule to the principal act determining the different size categories of small enterprises and section 10(2) that disestablish Seda came into effect on 1 October – so SEDFA was established and came into effect on 1 October 2024.
The same proclamation notice also states that section 10(2) of the Amendment Act comes into effect on 1 December 2024. So Seda will be disestablished on 1 December 2024. AGSA is currently finalising regulatory audits on Seda, Sefa and CBDA to conclude on financial matters. As from 1 December SEDFA will be the only entity.
National Treasury has published the delisting of Seda and CBDA with effect 1 December 2024 and the listing of SEDFA. Sefa is a subsidiary of the Industrial Development Corporation (IDC) and thus not listed.
The following annexures are attached for reference:
- Annexure A – Government Gazette Notice No. 51308 dated 27 September 2024
- Annexure B - National Small Enterprise Amendment Act, 2024
