City requests that President Ramaphosa broaden the criteria for SMME relief funding

6 April 2020

While I welcome the President’s commitment to provide much-needed relief through various funds and mechanisms, the economic impact of these measures, however necessary, has already had a devastating effect on job security and the survival of SMMEs.

I raised the concern that in our collective haste to implement protective and preventative measures as well as economic support, the finer details of the implementation have not been consulted widely enough to prevent grave unintended consequences.

I have already written to the Ministers of Tourism, MsMmamolokoKubayi-Ngubane, Small Business Development, MsKhumbudzoNtshavheni, and Trade and Industry, Mr Ebrahim Patel to seek clarity on the criteria. The Minister of Tourism stated that the criteria would not be adjusted. 

Cases in point include small businesses, which are not registered with the Companies and Intellectual Properties Commission (CIPC) as well as those not meeting the qualifying criteria geared towards Affirmative Action and Broad-Based Black Economic Empowerment.

In a state of disaster, the criteria used to access which SMMEs qualify for much-needed assistance should be as inclusive as possible and not discriminate.

I have spoken with numerous SMMEs who do not qualify for relief funding and who desperately need help to remain open, support their staff, and get back to business once the lockdown is lifted.

The City of Cape Town remains committed to work with all spheres of government in the best interests of our citizens. Only by working together, can we weather this storm. It is my sincere hope that President Ramaphosa agrees to my request so that there is something left to salvage once we emerge from this crisis.

Issued by Dan Plato, Mayor of City of Cape Town, 6 April 2020