How the reconstruction and recovery plan will impact SMEs

  JOHANNESBURG – Acknowledging the devastating impact Covid-19 has had on the global economy, the President has announced the reconstruction and recovery plan for SA, with a focus on inclusive growth. ; Some of the main focus areas are job creation and reindustrialisation of the economy. Examples of where the impact could be felt by SA SMEs includes the following. The government plans to bring forward the rollout of various large infrastructure projects, which typically have a positive knock on effect on SMEs that are suppliers to big projects and…

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Small and medium growers and innovation are key to South Africa’s citrus export growth

  While COVID-19 has disrupted many industries, the citrus industry in South Africa has emerged resilient, with strong demand in export markets and strong potential beyond the crisis. To tap this growth potential requires complementary public investment in ports and irrigation infrastructure, and technical capacity to negotiate access to wider export markets on favourable conditions. Demand for citrus in international markets has boomed under COVID-19 and prices have increased. For example, European prices for South African oranges in May 2020 were 7%-15% higher than a year earlier in euro terms, or around…

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COVID-19 has hit SMEs in South Africa’s food sector hard. What can be done to help them

  COVID-19 has prompted widespread discussion of the resilience of food systems and how efficiency and competitiveness have been previously understood. Recent decades have seen the growth of increasingly complex food value chains. These are underpinned by just-in-time delivery systems, a growing share of food products sold through supermarkets, and increasing concentration of ownership among powerful, large food manufacturers. The pandemic has further emphasised the need for a more diverse and inclusive food system, in which small and medium sized enterprises (SMEs) play a key role. As part of a larger…

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Whats SMEs should consider when applying for funding

DURBAN – SMEs who are not adequately prepared when applying for credit often develop an incorrect assumption that banks are not open to lending. Valentine Jingura, Head of Pricing at FNB Business said that the banking sector is eager to lend to SMEs as means to stimulate economic activity and broader GDP growth. As responsible financial services providers, banks are bound by a set of guidelines and principles, which prohibit reckless lending – to protect consumers and businesses. Accordingly, SMEs who seek financial assistance should familiarise themselves with the credit application…

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