Property Point urges Ramaphosa to prioritise MSMEs in State of the Nation Address

Ahead of President Cyril Ramaphosa's upcoming State of the Nation Address (Sona), Property Point has made a compelling plea for the urgent prioritisation of micro, small, and medium enterprises (MSMEs) as a key measure of government performance.

With a keen focus on practical commitments that bolster the operating environment for these businesses, Property Point emphasises the necessity of transforming policy intentions into tangible job creation, local supply chains, and broader participation in South Africa's economy.

In its recent review of the economic and policy landscape, Property Point highlights both opportunities and ongoing challenges facing South Africa's MSME sector.

While the country has seen some progress in areas such as reducing bureaucratic red tape and enhancing payment transparency, significant structural barriers still inhibit growth and development among smaller firms.

According to Maphefo Sipula, Head of Research and Impact at Property Point, “MSMEs are not a side issue in the economy. They are the economy where most people live and work. If the SONA is serious about inclusive growth, it must address the real conditions affecting whether MSMEs can trade, hire, and compete.”

Property Point's review identifies several specific areas that the President should address to promote the viability of MSMEs:

• Certainty and integrity in procurement: Property Point stresses that the President needs to clarify procurement reform directions, particularly concerning the implementation of the Public Procurement Act. The organisation warns that ongoing political and legal contestations over procurement policies create uncertainty that deters investment by smaller suppliers.
• Payment discipline that is visible and enforceable: The organisation advocates treating payment punctuality as a fundamental indicator of state capability and economic strategy. Sipula stated, “Late payment destroys cash flow and jobs. If government expects MSMEs to deliver, government must deliver on paying them.”
• An enabling environment that reflects real-world constraints: Addressing practical constraints is essential. Property Point urges the government to tackle issues such as unreliable utilities and rising crime rates, which disrupt business operations and inflate costs.
• Regulatory reform that reduces friction: While the review applauds efforts to simplify business registration and licensing, it cautions that reforms should not create additional burdens for small and informal enterprises.
• Infrastructure delivery that includes MSMEs in the value chain: The infrastructure project pipeline offers significant growth potential for MSMEs, particularly in construction. Property Point requests that the government provides enforceable subcontracting opportunities and necessary readiness support.

Despite recognising some improvements, including reduced administrative barriers and improved credibility in the financial system, Property Point cautioned that macroeconomic stability does not guarantee inclusivity.

“Sona is not only about what the government intends; it is about action and delivery,” Sipula concluded. “MSMEs need a clear path to markets, predictable rules, and an environment that allows them to operate safely and consistently.”

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