SMEs critical to economic growth

The role of small and medium-sized enterprises (SMEs) in increasing economic diversity and supporting innovation to increase competitiveness is crucial.

This is according to Deputy Minister for Trade, Industry and Competition Andrew Whitfield, who spoke during a panel discussion at the London Stock Exchange on the role of small businesses in the economy.

Whitfield is currently in the UK, accompanying Vice President Paul Mashatile on a mission to promote South Africa as a leading investment destination.

The aim of this high-level delegation is to strengthen the bilateral relationship between South Africa and the UK, showcasing South Africa’s enormous investment potential, while identifying new trade opportunities for local businesses.

In his speech, Whitfield highlighted the wide range of support mechanisms available to South African SMEs through the Department of Trade, Industry and Competition (dtic).

“At dtic, we have developed several industrial levers, including competition policy and export marketing assistance, to provide SMEs with the tools to expand and trade globally.

“We are also deeply engaged in conversations around digital transformation, enabling marginalized SMEs, particularly in sectors such as agro-processing, to access global value chains and participate in digital platforms,” he said.

Whitfield stressed that supporting SMEs through digital platforms is key to ensuring they can compete not only regionally but also globally.

He stressed the importance of reducing market access barriers for sectors such as agriculture, which remains an important growth area for SMEs, and strengthening cooperation between the private and public sectors to create an enabling trading environment.

He addressed the broader role of SMEs in South Africa’s industrial policy, highlighting the need for targeted interventions that enable them to participate in high-growth sectors such as manufacturing, technology and agro-processing.

“The export potential of South African SMEs is enormous and we are committed to growing them to ensure their integration into both regional and global value chains. Through our policies, we strive to create an ecosystem that supports rapid and inclusive growth.

“This is essential to creating jobs and ensuring that SMEs can make a significant contribution to the industrialization of our economy,” he added.

Additionally, Whitfield touched on the need to remove red tape and bureaucratic barriers to SME growth, highlighting the importance of regulatory reform as part of South Africa’s economic recovery strategy.

As the delegation continues its engagement in the UK, Whitfield stressed that partnerships between government and private sector players, particularly in sectors such as agriculture and technology, will be key to unlocking future opportunities.

“We have had encouraging discussions on agricultural products and solutions to support SME growth, and we are committed to ensuring that companies investing in South Africa make conscious efforts to partner with small and medium-sized enterprises.

“We believe that such partnerships, combined with digital transformation, will play a major role in ensuring that SMEs can thrive in global markets,” he said.

Whitfield reaffirmed South Africa’s commitment to creating an enabling environment that will attract investment and drive growth across sectors of the economy. – SAnews.gov.za