Tag: SMEFinance

Small and Medium Enterprises (SMEs) cannot grow without access to funding, and South Africa needs its SMEs to grow. What needs to change in the middle? The frame for South Africa’s economic growth in 2026 is one of modest recovery. The National Treasury’s 2026 Budget Review projects real Gross Domestic Product (GDP) growth of around 1.6%. The World Bank echoes these figures, at 1.4%, and expects growth to increase to 1.5% by 2027.

Small and Media Enterprises (SMEs) are regularly rejected for funding, even when their businesses are profitable, because the system was not designed with their business reality in mind. SMEs contribute around 40% of the country's gross domestic product (GDP) and 60% of employment. Yet they face the SME funding gap, which is estimated at R350 billion. There is no shortage of funding in the system.

For many people, the word credit evokes negative feelings because they associate it with debt risk. However, when we analyse its macroeconomic role, we must draw a clear distinction. We must distinguish between lending for general consumption and lending for a specific, productive purpose. The first approach remains broad and unfocused. As a result, it often produces the burdensome outcomes that fuel fear. The second approach offers a more responsible alternative.

South Africa’s corporate tax environment is undergoing a significant transformation. As the South African Revenue Service (SARS) accelerates its modernisation agenda and sharpens its enforcement posture, businesses now face a dual reality. Businesses experience improved efficiency through digital platforms. Yet they also confront increased complexity and scrutiny during interactions with the tax authority.