South Africa’s recently formed Government of National Unity (GNU) is expected to introduce new ideas into government, which could, subsequently, benefit small, medium-sized and microenterprises (SMMEs), Wits School of Governance Associate Professor William Gumede has said.

In an address at the Business Partners and Small Business Institute (SBI) SME Indaba, held in Gauteng, on July 24, he discussed the implications of a GNU, expressing that it provided an “exciting and different opportunity”, from a political and economic perspective, over the next five years.

Regarding service delivery, Gumede explained that a GNU could help push the African National Congress (ANC), and other parties who have joined the GNU, such as the Democratic Alliance (DA) and Inkatha Freedom Party (IFP), to improve service delivery.

“And because there are new people who want to perform in Cabinet, I think that will also help push the public service to get going. So that makes me optimistic. It is almost an ecosystem of changes.”

Further, while Gumede maintained that ideologies in economics could create constraints, he argued that it was possible for the GNU to shift the economy from an ideological perspective, and place a potentially greater focus on small business development.

In this vein, he discussed the importance of small businesses for economic growth and job creation, arguing that an increased focus on small business development could lead to long-term sustainable economic growth.

Gumede noted the benefits of a collective agreement between government, civil society and the private sector to address economic challenges, noting that a GNU could provide an opportunity for these entities to collaborate further.

“It is going to be important that business, civil society and professionals engage with the GNU and not wait on the sideline,” he said.

Meanwhile, SBI CEO John Dludlu highlighted some of the challenges faced by small businesses in South Africa, such as high interest rates and crime.

Despite these challenges, he noted that the environment for SMMEs was improving slightly.

He noted that the halt in loadshedding in recent months had contributed to this improvement.

He added that there was also a fresh focus on tackling red tape.

“These factors  . . . bode well for a sustainable recovery of our small business segment y,” Dludlu said.