SMEs welcome the establishment of Small Business Ombud

It will be instrumental in addressing key challenges facing small businesses

By: Business Reporter

DSBD Minister Stella Ndabeni      Images: GCIS & Shutterstock

Small, Micro & Media Enterprises in South Africa have hailed the establishment of the Small Business Ombudsman, as a significant step towards a fairer and more supportive environment for small businesses.

A thriving small business sector is crucial for South Africa’s economic growth and job creation, and this initiative will help achieve that goal.

The Ombud will serve as an independent and accessible forum for resolving disputes between small businesses and larger entities, including government departments. It will ensure that small enterprises are treated fairly, promote ethical business practices, and advocate for their interests in policy-making.

The small business sector believes that the Small Business Ombud will be instrumental in addressing key challenges facing small businesses, such as late payments, unfair contracts, and access to finance. “We are committed to working with the Ombud to strengthen the small business sector, drive inclusive economic growth, and create much-needed jobs “said one small business owner.

Meanwhile

Two week back in Parliament, The Portfolio Committee on Small Business Development has, in line with section 17F of the National Small Enterprise Amendment (NSEA) Act of 2024, recommended four candidates for the Minister of Small Business Development to appoint as Ombud in the new Office of Small Enterprise Ombud Service.In line with the NSEA Act, the following candidates are eligible for appointment:

• Mr Lufuno Tokyo Nevondwe;

• Adv Sonwabile Mancotywa;

• Mr Lehlohonolo Lucky Rabotapi; and

• Ms Nande Mheshe.

The committee’s recommendation follows a transparent nomination process by members of the public and lengthy interviews of eight shortlisted candidates on Tuesday, 1 April 2025.

The Office of Small Enterprise Ombud Service is established as a juristic person in terms of section 17D of the NSEA Act, and it is accountable to both the Minister of Small Business Development and Parliament.

According to section 17G of the NSEA Act, the Ombud must consider and adjudicate complaints by small enterprises and small enterprise organisations through alternative dispute resolution mechanisms. The Ombud may initiate an investigation concerning a complaint by a small enterprise concerning any alleged prohibited conduct or when directed to do so by the minister.

The committee’s recommendation will be tabled in the National Assembly for adoption, and it will then be forwarded to Minister Stella Ndabeni-Abrahams for her consideration and appointment.