Rorisang Kgosana
Premium Journalist
5 minute read
19 Aug 2021
8:30 am

Improve the market for SMMEs and SA won’t need as many grants

Rorisang Kgosana

Getting the SMME sector right would go much further in dealing with poverty, but government would rather dole out grants.

People queue at South African Post Office at JubiIee Mall during adjusted lockdown level 4 on 6 July 2021 in Hammanskraal. Picture: Gallo Images/Alet Pretorius

If done correctly, small, micro and macro enterprises (SMMEs) could be the ideal solution to alleviating poverty, unemployment and reviving the economy while lowering the need for short-term unaffordable solutions such as social relief grants, economists said. Figures by Statistics SA show that 32.6% of the population was unemployed in the first quarter of 2021, with nearly half being those aged between 15-34 years. More than half of the population (55.5%) was living in poverty, while 25% of South Africans experienced food poverty, the World Bank’s DataBank survey found. The dire situation among South Africans has left millions to line...