Simone Cooper | Head | Business & Commercial Banking | Standard Bank South Africa | mail me |
As South Africa prepares for the National Budget Speech later this month, attention is turning to whether government commitments to small and medium-sized enterprises (SMEs) will receive fiscal support and implementation details. These elements are required to unlock real economic impact.
In his 2026 State of the Nation Address (SONA) delivered last week, President Cyril Ramaphosa reaffirmed the importance of SMEs in driving growth and employment. He noted that if every SME in South Africa employed just one additional person, the country could create three million jobs.
Acknowledging entrepreneurial realities
The President also acknowledged the realities entrepreneurs face daily. These include limited access to funding, constrained market opportunities and the burden of complex regulations and licensing requirements. SMEs and SONA’s support measures aim to address these challenges directly.
Government further committed to providing more than R2.5 billion in funding to over 180,000 SMEs. It also pledged a further R1 billion in guarantees. In addition, it proposed amendments to the National Credit Act regulations to improve access to credit at a lower cost. These initiatives are part of SMEs and SONA’s support measures.
From commitment to implementation
These are meaningful commitments. However, the key test now is whether the National Budget Speech later this month will provide fiscal backing and implementation detail to turn these announcements into real economic outcomes.
The President has correctly recognised that SMEs can unlock the next wave of job creation in South Africa. However, small businesses cannot grow on good intentions alone. They need practical delivery.
The Budget Speech must translate those commitments into funded programmes, implementable reforms and real support that reaches entrepreneurs on the ground. SMEs and SONA’s support measures must move beyond rhetoric to tangible action.
For SMEs, the budget is a fiscal moment that signals business confidence. It determines whether the environment will enable investment and expansion. Alternatively, businesses may remain trapped in survival mode as they absorb infrastructure challenges, rising input costs and administrative complexity.
Operationalising support
A practical Budget Speech must therefore go beyond broad statements of support. It must show how the government will operationalise the commitments made in SONA. This includes clearer mechanisms for SME funding access, improved payment cycles for SME suppliers, streamlined licensing and regulatory requirements and infrastructure investment that directly improves business productivity.
At the same time, South Africa’s financial institutions also have a responsibility to enable SME growth. This includes supporting entrepreneurs with accessible and responsible funding solutions. It also includes advisory support and tools that improve cashflow management and long-term business sustainability, particularly in sectors and regions where small businesses already show resilience and growth potential.
Growth through partnership
Growth requires partnership. As the government creates the conditions for SMEs to thrive, financial institutions must continue building solutions that help businesses invest, manage risk and scale sustainably.
As South Africa prepares for the National Budget Speech, the true measure of success will be whether it strengthens conditions for SMEs to start, manage and grow. This will ensure SMEs continue to meaningfully support job creation and inclusive economic growth. SMEs and SONA’s support measures are central to this effort.
