By Johnathan Paoli
Deputy Minister of Higher Education and Training Buti Manamela has reaffirmed government’s commitment to supporting the small business sector through focused investment in skills development, stressing a crucial link between the government’s intentions and real-world implementation.
Manamela was speaking during post-budget engagements with SMMEs in Cape Town. It was co-hosted by Food and Beverage Sector Education Training Authority (FoodBev SETA), the Insurance SETA (INSETA) and the Safety and Security SETA (SASETA) in partnership with his department.
“We meet here today as policy meets practice, and as budgets meet the ambitions of our entrepreneurs operating at the frontline of economic inclusion in the food, insurance and security sectors,” Manamela told attendees.
The deputy minister outlined how the budget would drive transformation across the higher education and skills ecosystem, particularly in support of micro, small and medium enterprises.
Of the total allocation, R116.4 billion comes from voted funds and R26 billion from the Skills Development Levy.
Key allocations include R14 billion for TVET colleges, rising to R14.7 billion in 2026; R3.1 billion for Community Colleges, increasing to R3.3 billion; R48.7 billion for NSFAS, rising to R53 billion by 2027; R96 billion for universities, despite a R1.4 billion funding gap; and R26 billion for SETAs and the National Skills Fund, growing to R27.8 billion next year.
“These are not abstract numbers, but represent potential, opportunity, and impact. They represent your businesses, your employees, your communities,” Manamela said.
The deputy minister emphasised that SMMEs accounted for over 60% of employment in South Africa and were often the only economic lifeline in township and rural communities.
Manamela referenced the National Skills Development Plan Outcome 6 which prioritised support for entrepreneurship and cooperative development.
The National Skills Fund is expected to spend over R659 million in the current year on SMME support, youth-focused programmes and cooperatives.
In the 2024/25 financial year, the department’s procurement spend directly supported 366 micro and small enterprises, allocating more than R59 million, 36% above target.
For the current year, the department has set a 50% procurement target.
Manamela stressed the importance of market access, compliance support, mentorship, infrastructure and procurement opportunities.
The deputy minister also commended the contributions of the three co-hosting SETAs, highlighting the scale and scope of their SMME-aligned programmes.
INSETA supported over 2500 beneficiaries and invested R40 million in bursaries, learnerships, workplace-integrated learning and skills programmes, with many focused on small insurance enterprises.
SASSETA disbursed more than R100 million across a wide range of interventions, including learnerships, internships, graduate placements and recognition of prior learning, specifically empowering emerging security businesses.
FoodBev SETA invested R106 million in training over 2900 learners in areas ranging from artisan development to TVET and university placements which are key to bolstering South Africa’s food and manufacturing sector.
“These interventions aren’t charity, they are investments in jobs, dignity, and long-term competitiveness,” Manamela said.
As part of the day’s programme, the deputy minister, joined by FoodBev SETA CEO Nokuthula Selamolela, INSETA CEO Gugu Mkhize and SASSETA CEO Thamsanqa Mdontswa and representatives from the Mining Qualifications Authority, embarked on an SMME Immersion Walkabout at Makers Landing, a culinary hub at the V&A Waterfront.
It allowed the delegation to engage directly with food entrepreneurs and small-scale producers working in the precinct’s production-ready kitchens and incubator spaces.
From artisanal beverage creators to dairy and packaged goods entrepreneurs, the walkabout highlighted the tangible outcomes of skills investment and the real-world impact of public-private partnerships.
Makers Landing, a partnership between the V&A Waterfront and the National Treasury’s Jobs Fund, is home to a dynamic food incubation programme and serves as a model for linking training to economic opportunity.
Citing the 2023 Survey of Employers and the Self-Employed, Manamela noted that nearly 1.9 million informal businesses operate in South Africa, over 80% of which were started using personal savings and without formal financing or licensing.
“Yet they persist. Our duty is to ensure they do not walk this road alone. Whether in a spaza shop in Khayelitsha, a catering co-op in Giyani, or a private security start-up in Vosloorus; we must match their determination with institutional support,” he said.
The deputy minister emphasised that the budget must be more than an accounting document, but a mandate for delivery.
“This budget must not sit in a PDF or a parliamentary Hansard, it must live in the businesses you grow, the people you employ, and the communities you sustain. Let this not be our last engagement. Let this be our annual commitment,” he said.
The session marked a milestone in strengthening collaboration between the department, SETAs, and the small business sector, reinforcing government’s recognition of SMMEs as the engine of South Africa’s economic recovery and transformation.
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