By: Lonwabo Mtyeku | Photo Credit: Supplied
Johannesburg, 16 February 2026 – With the 2026 National Budget Speech fast approaching, South Africa’s small and medium-sized enterprises (SMEs) are watching closely to see whether government commitments outlined in last week’s State of the Nation Address (SONA) will translate into real fiscal backing and practical implementation.
In his 2026 SONA, President Cyril Ramaphosa emphasised the vital role of SMEs in driving economic growth and employment, noting that if each SME employed just one additional person, the nation could create three million jobs. The President also acknowledged the hurdles entrepreneurs face, including limited access to funding, narrow market opportunities, and the burden of complex regulatory requirements.
To address these challenges, government committed over R2.5 billion in funding to more than 180,000 SMEs, supplemented by R1 billion in guarantees. Proposed amendments to the National Credit Act are also intended to enhance access to affordable credit for small businesses.
While these announcements signal recognition of SMEs’ strategic importance, the critical test lies in whether the upcoming Budget will deliver the operational details and fiscal resources needed to turn these promises into actionable outcomes.
“The President has correctly recognised that SMEs can unlock the next wave of job creation in South Africa,” says Simone Cooper, Head of Business and Commercial Banking at Standard Bank South Africa. “However, small businesses cannot grow on intentions alone. They need funded programmes, implementable reforms, and support that reaches entrepreneurs on the ground.”
For SMEs, the Budget is more than a policy statement—it is a signal of business confidence. It determines whether enterprises can invest and expand or remain in survival mode, navigating rising input costs, infrastructure challenges, and administrative burdens.
Experts stress that a practical Budget Speech must outline how government plans to operationalise its commitments. Key areas include streamlined funding access, improved payment cycles for SME suppliers, simplified licensing and regulatory processes, and targeted infrastructure investment that enhances business productivity.
Financial institutions also play a pivotal role in this ecosystem, offering responsible funding solutions, advisory services, and tools to manage cash flow and ensure long-term business sustainability, particularly in sectors and regions where SMEs are already demonstrating resilience.
“Growth requires partnership,” Cooper adds. “As government creates enabling conditions, financial institutions must provide practical solutions that help SMEs invest, manage risk, and scale sustainably.”
As South Africa awaits the Budget, the real measure of success will be whether it strengthens the environment for SMEs to start, manage, and grow—ultimately driving inclusive economic growth and meaningful job creation.
