Ahead of the national Budget, to be tabled on February 22, the Small Business Institute (SBI) has called on Finance Minister Enoch Godongwana to support small businesses and their employees, households and families who are facing high costs of living and experiencing negative impacts as a result of loadshedding.

SBI CEO John Dludlu says the institute appeals to Godongwana to explain how government will support South Africans from the effects of an 18% electricity tariff increase, which was granted by the National Energy Regulator of South Africa to Eskom.

If the increase is allowed, he says, it will serve to worsen the hardship of households which are suffering from high food prices, especially for sources of protein.

A month ago, President Cyril Ramaphosa announced that he had asked the Eskom board to pause the implementation of the tariff increase.

“We are hoping the Budget provides clarity on what support will be given to families and businesses if the tariff increase is not implemented,” says Dludlu.

On the topic of support for small businesses, he says SBI expects Godongwana to give details and quantum of envisaged relief under the redesigned Bounce Back scheme to assist small firms to procure alternative, non-grid sources of electricity.

“We welcome government’s willingness to listen to perspectives of other players in the ecosystem to make the scheme more responsive to the needs of those it is aimed at assisting. The simpler the better is our message, especially coming out of the Covid-19 relief schemes,” says Dludlu.

He points out that, while the SBI commends the coordinated effort to reduce burdensome legislation stifling small businesses, what is needed is an intensification of initiatives that welcome business owners.

The SBI also believes that government should redouble efforts to bolster job creation, especially among the youth.

“If we don’t give hope to the millions of youths, the social stability of our country will be at more risk than from any external factors and enemies. In this vein, we support the call by government on all employers to drop the requirement for experience for youths in junior, entry-level and less critical roles,” says Dludlu.

To balance South Africa’s economy, the SBI urges Godongwana to ask government departments to discontinue so-called vanity projects, such as the controversial discontinued multimillion-rand flag mast.

“On a far more major scale, we need more clarity about how Eskom’s debt problem is going to be resolved in the short, medium and long term, without compromising our already precarious public debt situation,” says Dludlu.

He says the domestic economy requires serious job creation, especially for youth, turning them into taxpayers instead of social grant earners.

Dludlu adds that South Africa’s prevailing and deteriorating crime siutation requires serious attention, as citizens and business owners are living in constant fear of being harmed or having their infrastructure destroyed.