an impasse

South Africa: Small business’ ability to create jobs limited by red tape, says Black Business Council

By Xolisa Phillip

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Posted on May 12, 2022 13:23

 © Job seekers wait beside a road for casual work offered by passing motorists in Eikenhof, south of Johannesburg, South Africa, March 3, 2022. REUTERS/Siphiwe Sibeko
Job seekers wait beside a road for casual work offered by passing motorists in Eikenhof, south of Johannesburg, South Africa, March 3, 2022. REUTERS/Siphiwe Sibeko

South Africa’s plan to create 11 million jobs by 2030 through empowering the small business sector via targeted procurement, better access to funding, and cutting red tape, remains elusive, according to Black Business Council (BBC) CEO Kganki Matabane.

The 11-million jobs target is set in the National Development Plan (NDP), South Africa’s blueprint economic document, which not only details the country’s problems, but also proposes solutions, such as using small businesses as a vehicle to generate new employment.

South Africa’s official unemployment rate rose to 35.3% in the fourth quarter of 2021, according to Statistics South Africa’s (Stats SA’s) Quarterly Labour Force Survey (QLFS) published in March 2022. This is the highest rate recorded since Stats SA began compiling and publishing QLFS figures in 2008.

“The NDP says by 2030 we need to create more than 10 million jobs. We are now in 2022, and far from that. It doesn’t even look like there’s someone in government tracking that [NDP jobs goal],” says Matabane.

“In the last six months, things have become worse, especially for those doing business with the state, because of

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