B16 2023 National Small Enterprise Amendment Bill

REPUBLIC OF SOUTH AFRICA
NATIONAL SMALL ENTERPRISE

AMENDMENT BILL
(As introduced in the National Assembly (proposed section 75); explanatory summary of
Bill and prior notice of its introduction published in Government Gazette No. 48776 of 12
June 2023)
(The English text is the offıcial text of the Bill)
(MINISTER OF SMALL BUSINESS DEVELOPMENT)
[B 16—2023] ISBN 978-1-4850-0876-7
No. of copies printed .........................................150

GENERAL EXPLANATORY NOTE:
[ ] Words in bold type in square brackets indicate omissions from

existing enactments.
Words underlined with a solid line indicate insertions in
existing enactments.
BILL
To amend the National Small Enterprise Act, 1996, in order to amend, delete, insert
and to substitute certain definitions; to provide for the report of the Advisory Body;
to provide for the establishment of the Small Enterprise Development Finance
Agency; to provide for the functions of the Agency; to ensure the provision of
financial and non-financial support services to small enterprises; to promote the
development of sustainable and responsible co-operative banking; to provide for
the establishment of the Office of the Small Enterprise Ombud Service; to enable
an equitable trading environment for small enterprises through the provision of
affordable and effective access to justice; to empower the Minister to declare
certain practices in relation to small enterprises to be prohibited as unfair trading
practices; to provide for the transitional arrangements necessitated by the
establishment of the Agency; to effect consequential or necessary amendments to
the Co-operative Banks Act, 2007, and to the Co-operatives Act, 2005; and to
provide for matters connected therewith.
B E IT ENACTED by the Parliament of the Republic of South Africa, as follows:—
Amendment of section 1 of Act 102 of 1996, as amended by section 1 of Act 26 of

2003 and section 1 of Act 29 of 2004
1. Section 1 of the National Small Enterprise Act, 1996 (Act No. 102 of 1996) 5
(hereinafter referred to as the principal Act), is hereby amended—
(a) by the substitution for the words preceding the definition of ‘‘Agency’’ of the
following words:
‘‘(1) In this Act, unless the context indicates otherwise—’’;
(b) by the substitution for the definition of ‘‘Agency’’ of the following definition: 10
‘‘‘Agency’ means the Small Enterprise Development Finance Agency
SOC Limited established in terms of section 9;’’;
(c) by the insertion after the definition of ‘‘Agency’’ of the following definition:
‘‘‘Auditor-General’ means the person appointed as Auditor-General in
terms of section 193(4) of the Constitution;’’; 15
(d) by the substitution for the definition of ‘‘Board’’ of the following definition:
‘‘‘Board’ means the Board of Directors of the Agency established in
terms of section 16;’’;
(e) by the deletion of the definition of ‘‘Chief Executive Officer’’;
(f) by the insertion after the definition of ‘‘Chief Executive Officer’’ of the 20
following definitions:
3
‘‘‘Companies Act’ means the Companies Act, 2008 (Act No. 71 of

2008);
‘complainant’ means a small enterprise or small enterprise organisation;
‘complaint’ means any complaint lodged, as contemplated in Chapter
3A, by a small enterprise or small enterprise organisation against— 5
(a) another small enterprise or small enterprise organisation;
(b) a large enterprise that does not fall within the meaning of ‘‘small
enterprise’’; or
(c) an organ of state as defined in section 239 of the Constitution,
in relation to the interpretation of the terms of an agreement for the 10
procurement of goods or services or the late or non-payment of amounts
due and payable to the small enterprise, where the complaint is not a
complaint that falls under the jurisdiction of an ombud, as defined in
section 1(1) of the Financial Sector Regulation Act, 2017 (Act No. 9 of
2017);’’; 15
(g) by the insertion after the definition of ‘‘constitution of the Council’’ of the
following definitions:
‘‘‘co-operative enterprises’ include a co-operative, a co-operative
bank and a co-operative financial institution, as defined in the Co-
operative Banks Act, 2007 (Act No. 40 of 2007); 20
‘development support’ includes both financial and non-financial
support;
‘director’ means the person appointed in terms of section 17N;’’;
(h) by the substitution for the definition of ‘‘Director-General’’ of the following
definition: 25
‘‘‘Director-General’ means the Director-General of the Department [of
Trade and Industry, or an officer of that Department designated by
that Director-General] responsible for small business development;’’;
(i) by the substitution for the definition of ‘‘Minister’’ of the following definition:
‘‘‘Minister’ means the Minister [of Trade and Industry] responsible 30
for small business development;’’;
(j) by the insertion after the definition of ‘‘Ntsika’’ of the following definitions:
‘‘‘Office’ means the Office of the Small Enterprise Ombud Service
established by section 17D;
‘Ombud’ means the Ombud appointed in terms of section 17F;’’; 35
(k) by the insertion after the definition of ‘‘prescribed’’ of the following
definition:
‘‘‘Public Finance Management Act’ means the Public Finance
Management Act, 1999 (Act No. 1 of 1999);’’;
(l) by the substitution for the definition of ‘‘small enterprise’’ of the following 40
definition:
‘‘‘small enterprise’ means a separate and distinct business entity,
together with its branches or subsidiaries, if any, including a co-
operative, co-operative financial institution, or a co-operative bank,
carried on in any sector or sub-sector of the economy classified as a 45
micro, small or medium enterprise which satisfies the prescribed
criteria;’’;
(m) by the insertion after the definition of ‘‘Trust’’ of the following definition:
‘‘‘Unfair Trading Practice’ means a practice contemplated in section
17Y;’’; and 50
(n) by the addition of the following subsection:
‘‘(2) Unless the context indicates otherwise, a word or phrase defined
in the Companies Act, the Co-operatives Act, 2005 (Act No. 14 of 2005),
the Co-operative Banks Act, 2007 (Act No. 40 of 2007), or the Public
Finance Management Act, has the same meaning in this Act.’’. 55
Insertion of section 1A in Act 102 of 1996
2. The following section is hereby inserted after section 1 of the principal Act:
4
‘‘Application of Act
1A. (1) In the event of a conflict between the provisions of this Act and
the Public Finance Management Act, the provisions of the latter Act prevail.
(2) In the event of a conflict between the provisions of this Act and the
Companies Act, the Co-operatives Act, 2005 or the Co-operative Banks 5
Act, 2007, the provisions of this Act prevail.’’.
Insertion of section 4 in Act 102 of 1996
3. The following section is hereby inserted after section 3 of the principal Act:
‘‘Report of Advisory Body
4. (1) The Advisory Body must submit to the Minister an annual report 10
within five months of the end of each financial year which must include—
(a) particulars of the work of the Advisory Body and of advice provided to
the Minister in terms of section 3(2)(b) in furtherance of the objects of
the National Small Business Support Strategy;
(b) financial statements relating to the Advisory Body; and 15
(c) such other information as may be prescribed.
(2) The Minister must table a copy of the annual report contemplated in
subsection (1) in Parliament.
(3) The Minister may request the Advisory Body to provide any other
information as may be necessary.’’. 20
Substitution of Chapter 3 of Act 102 of 1996
4. The following Chapter is hereby substituted for Chapter 3 of the principal Act:
‘‘Chapter 3
Small Enterprise Development Finance Agency
Establishment and shareholder of Agency 25
9. (1) Upon the coming into effect of this section, the Minister must
ensure that the necessary steps are taken for the incorporation of the Agency
as a company contemplated in subsection (2).
(2) The Companies and Intellectual Property Commission must—
(a) register the Memorandum of Incorporation and incorporate the 30
Agency under the name ‘‘Small Enterprise Development Finance
Agency SOC Limited’’ with the State as the shareholder; and
(b) issue to that entity the necessary documents to enable it to conduct
business as a corporate entity.
(3) The Minister is the sole representative of the shareholder. 35
(4) The Agency acts through its Board.
(5) The Public Finance Management Act and the Companies Act apply to
the operations of the Agency.
Objectives of Agency
10. The objectives of the Agency are to— 40

(a) design and implement development support programmes for small
enterprises;
(b) promote a service delivery network that increases the contribution of
small enterprises to the South African economy, and enhances
economic growth, job creation and equity to historically disadvan- 45
taged communities;
(c) support, promote and develop co-operative banks and co-operative
financial institutions; and
(d) generally, strengthen the capacity of—
(i) service providers to support small enterprises; and 50
5
(ii) small enterprises to compete successfully domestically and

internationally.
Shareholder powers and duties
11. (1) Subject to this section and section 12, the Minister must exercise
all the rights and duties of a shareholder under the Companies Act in 5
relation to the Agency in order to promote and support the functions of the
Agency and to report annually on the developmental impact and material
risks of its investment in the Agency.
(2) Notwithstanding the Companies Act, the Minister may only—
(a) subject to subsection (3), appoint the directors to the Board of the 10
Agency in terms of section 68 of the Companies Act on the
recommendations of the Board after a transparent appointment
process conducted by it;
(b) remove directors in terms of sections 69 and 71 of the Companies Act
if the director— 15
(i) is in breach of the director’s fiduciary duties; or
(ii) is unable to perform the functions of a director adequately or
competently; and
(c) determine the remuneration of directors in accordance with the best
market practice and in accordance with applicable guidelines. 20
(3) Notwithstanding subsection (2)(a), the Minister may, on good
grounds, apply to the High Court for an order to appoint a director not
recommended by the Board in terms of that subsection.
(4) The Board must submit an annual corporate plan to the Minister for
approval, which includes— 25
(a) the Agency’s strategic objectives, business strategies and outcomes;
(b) performance measures and key indicators for assessing its perfor-
mance in delivering the desired objectives, strategies and outcomes;
(c) the investment and financing programmes, including any borrowing
plan, and the underlying assumptions for those programmes; 30
(d) the strategies for managing financial and non-financial risk;
(e) particulars relating to financial indicators and forecasts;
(f) the accounting policies of the Agency; and
(g) any other relevant information which relates to the financial and
non-financial support activities of the Agency. 35
(5) The Minister must commission an independent assessment of the
Board’s performance every three years.
Material or persistent failure to meet objectives and targets
12. (1) If the Agency materially or persistently fails to meet the

objectives and targets as contained in its corporate planning instruments 40
and as specified by the Minister in terms of binding shareholder instructions
as contained in shareholder compacts, the Minister may call a special
general meeting of the Agency to consider the corrective action to be taken.
(2) In the circumstances contemplated in subsection (1), the Minister
may— 45
(a) request any additional information required;
(b) commission an independent investigation of the Agency, or a
subsidiary, in relation to its operations and finances;
(c) require, in consultation with the Board, that the Agency be restruc-
tured with a view to meet the financial and non-financial support 50
objectives of the State in relation to small enterprises or reducing the
Agency’s costs or increasing its revenue;
(d) review Board membership and provide additional capacity to the
Board;
(e) issue instructions to the Board to remedy the failure; or 55
(f) apply to the High Court to appoint a curator, on such terms as the
Court may determine, to take control of the management of the
Agency.
6
(3) If the Minister exercises any of the powers listed in subsection (2), the
powers of the Board and the performance of its functions to manage the
business and affairs of the Agency are restricted accordingly, notwithstand-
ing anything to the contrary contained in section 66 of the Companies Act.
(4) If the Minister commissions an independent investigation in terms of 5
subsection (2)(b)—
(a) the Board must ensure that the person carrying out the investigation
has access to all relevant information of the Agency; and
(b) the person carrying out the investigation must—
(i) ensure that the information gleaned in the investigation is 10
confidential and may not be communicated to any person other
than the Minister, the Board or an applicable law enforcement
agency; and
(ii) submit a written report of the findings arising from the
investigation to the Minister and the Board. 15
(5) If a curator is appointed in terms of subsection (2)(f), the curator
assumes all the duties, functions and powers of the Board.
(6) Both the Minister and the Board must disclose any appointment and
main findings of an independent investigator in the Minister’s annual report
and the Agency’s annual report. 20
Agency’s powers and functions
13. In the exercise of its powers and the performance of its functions to
manage the business and affairs of the Agency, the Board must, subject to
section 11—
(a) implement the policy of the national government for small enterprise 25
development inclusive of both financial and non-financial support
services;
(b) design and implement a standard national delivery network that must
uniformly apply throughout the Republic in respect of small enterprise
development; 30
(c) design and implement small enterprise development support
programmes in order to—
(i) facilitate the building of sustainable and competitive small
enterprises;
(ii) facilitate the promotion of entrepreneurship; 35
(iii) facilitate the creation of an enabling operating environment for
small enterprises;
(iv) facilitate access by small enterprises to financial resources,
non-financial resources, capacity-building services, products
and services; 40
(v) promote participation of historically disadvantaged persons in
small enterprises;
(vi) facilitate international and national market access for products
and services of small enterprises;
(vii) foster partnerships across all spheres of government, the 45
private sector and relevant stakeholders to assist the Agency to
achieve its objectives;
(viii) promote a service delivery network to facilitate access and
outreach to development support for small enterprises;
(ix) facilitate and co-ordinate research relating to small enterprise 50
support programmes;
(x) provide support in the implementation of the Small Enterprise
Development Policy;
(xi) co-operate with, and assist, including through providing
information, the Financial Sector Conduct Authority and the 55
Prudential Authority as defined in section 1(1) of the Financial
Sector Regulation Act, 2017 (Act No. 9 of 2017), in dealing
with matters of mutual interest;
(xii) at the request of the Minister, investigate, advise on and
comment on the effect of existing legislation and the impact of 60
proposed legislation on small enterprises; and
7
(xiii) improve the understanding of the public regarding the contri-

bution of small enterprises to domestic economic growth, job
creation and general welfare;
(d) establish provincial structures to ensure the effective implementation
of its functions; and 5
(e) conduct a public and transparent process, through its nominations
committee, to make recommendations for appointments to the Board
based on a matrix of skills, experience and diversity, which when
considered collectively, enables them to attain the Agency’s pre-
scribed objectives. 10
Role, functions and duties of Agency Board
14. (1) The Board must ensure that its business and affairs are conducted
in a manner consistent with this Act, the Companies Act, the Co-operatives
Act and the Co-operative Banks Act, and in particular, it must—
(a) develop the annual corporate plan referred to in section 11(4) in 15
respect of the Agency and any of its subsidiaries;
(b) prepare and approve an annual budget, including any borrowing plan,
if necessary, to give effect to that corporate plan;
(c) without delay notify the Minister of any adverse events that may affect
the ability of the Agency to meet its performance and comply with this 20
Act, and the reasons therefor;
(d) implement an appropriate procurement and provisioning system
which is fair, equitable, transparent, competitive and cost-effective in
accordance with section 51 of the Public Finance Management Act;
and 25
(e) develop a system for properly evaluating all Agency activities, both
financial and non-financial.
(2) Subject to the requirements of this Act, the Board may exercise all its
powers under the Companies Act, including the power to borrow money
from, issue a guarantee, indemnity or security to, a third party for the 30
purpose of performing its functions and achieving its objectives.
Finances of Agency
15. (1) The funds of the Agency consist of—

(a) money appropriated by Parliament;
(b) grants, donations and bequests made to the Agency; 35
(c) income gained through investment of monies; and
(d) money lawfully obtained or raised by the Agency from any other
source.
(2) Any appropriation of funds contemplated in subsection (1)(a) must,
prior to being distributed to the Agency, specify criteria for the use of funds 40
and whether the funds are to be used by the Agency for financial or
non-financial support services.
(3) The criteria contemplated in subsection (2) must—
(a) in the case of financial support services, in relation to any consequent
loans made to small enterprises, specify— 45
(i) intended recipients;
(ii) categories of each sector;
(iii) applicable interest rates;
(iv) repayment terms;
(v) acceptable impairment levels; and 50
(vi) any other relevant terms; and
(b) in the case of non-financial support services, include categories of
recipients and the nature of the non-financial support to be provided.
(4) The procedures to be followed when granting or not granting
financial or non-financial support by the Agency must allow for the review 55
of that decision.
8
(5) The Agency must include in its reporting to the Minister prescribed
information as to—
(a) the recipients of the financial and non-financial support services
envisaged in subsection (3)(a) and (b); and
(b) the funds envisaged in subsection (1)(b) to (d). 5
(6) All monies received by the Agency must be deposited into a banking
account in the name of the Agency with a bank established under the Banks
Act, 1990 (Act No. 94 of 1990).
Composition of Board
16. (1) Subject to section 11, the Minister must appoint all the directors 10
of the Board on grounds of their skill, knowledge and experience, which,
when considered collectively, will enable them to fulfil the objectives of the
Agency.
(2) The Board must comprise a minimum of seven and a maximum of 13
directors. 15
(3) Non-executive directors serve a term of three years and may not be
reappointed for more than two additional terms.
(4) The CEO and CFO of the Agency are Executive members of the
Board.
Board committees 20
17. In addition to any other Board committees permitted in terms of

section 72 of the Companies Act, the Board must appoint—
(a) an audit and risk committee;
(b) a human resources, remuneration and nominations committee, inter
alia, to make recommendations of persons to be appointed to the 25
Board in terms of section 11(2)(a);
(c) a social and ethics committee; and
(d) a credit and investment committee.
Standards of director conduct
17A. In addition to the standards of director conduct contemplated in 30

section 76 of the Companies Act and governed by the common law, a
director of the Agency must act in the best interests of the company taking
into account its public service delivery and developmental objectives.
Reporting 35
17B. (1) The Board must submit to the Minister an annual report within
five months of the end of each financial year in respect of the Agency to
include—
(a) the audited financial statements including, but not limited to, profit and
loss statements, statement of financial position and statement of cash 40
flows;
(b) the audit reports and any necessary commentaries on those financial
statements;
(c) detailed performance against targets;
(d) material risks; 45
(e) shareholder instructions and achievement of performance against
these instrtuctions, including an analysis of factors likely to affect
achievement of such performance or create significant risks;
(f) significant and material transactions concluded and their respective
values; 50
(g) information required under the Companies Act for public companies;
(h) a report on corporate governance;
(i) a business sustainability report;
(j) risk management systems implemented by the Agency; and
(k) such other information as may be prescribed. 55
9
(2) The Board must submit to the Minister the Agency’s un-audited
financial statements by no later than 31 May of every year.
(3) The Minister must table a copy of the annual report contemplated in
subsection (1) in Parliament.
5
Audit of Agency
17C. Despite section 90(1) of the Companies Act, the Auditor-General

must, in accordance with the Public Audit Act, 2004 (Act No. 25 of 2004),
ensure that the financial statements of the Agency are audited each year.’’.
Insertion of Chapter 3A in Act 102 of 1996 10
5. The following Chapter is hereby inserted after Chapter 3 of the principal Act:
‘‘Chapter 3A
Dispute Resolution Mechanism
Establishment of Office of Small Enterprise Ombud Service
17D. (1) The Office is hereby established as a juristic person. 15

(2) The Office is accountable to the Minister and Parliament.
(3) The Department responsible for small business development must
establish an appropriate administrative structure, including a national head
office and, where necessary, regional offices for the Office.
(4) The provisions of the Public Finance Management Act apply to the 20
Office.
(5) The Office must exercise its functions in terms of this Act—
(a) in the most efficient and cost-effective manner; and
(b) in accordance with the values and principles mentioned in section 195
of the Constitution. 25
Objective of Office
17E. (1) The objective of the Office is to adjudicate and dispose of

complaints in terms of this Act in a manner which is procedurally fair,
economical, and expeditious and by reference to what is equitable in all the
circumstances, with due regard to— 30
(a) existing contractual arrangement or other legal relationship between
the complainant and any other party to the complaint; and
(b) the provisions of this Act.
(2) The Ombud and any deputy Ombud must act independently and
impartially. 35
(3) The Office of the ombud must fulfil advocacy functions.
Appointment of Ombud and deputy Ombud
17F. (1) The Minister must within 90 days of a vacancy appoint, as

Ombud, a person—
(a) with legal training and appropriate experience and who possesses 40
knowledge of small enterprises, trade, industry, finance or the
economy; and
(b) resident or ordinarily resident in South Africa.
(2) The person contemplated in subsection (1) is appointed for a term of
seven years which may be renewed for one more term. 45
(3) The Minister may within 90 days of a vacancy appoint as deputy
Ombud, one or more persons—
(a) with legal training and appropriate experience and who possess
knowledge of small enterprise, trade, industry, finance, or the
economy; and 50
(b) resident or ordinarily resident in South Africa.
10
(4) The person contemplated in subsection (3) is appointed for a term of

seven years which may be renewed for one more term.
(5) The remuneration and other terms of appointment of the Ombud and
a deputy Ombud must be determined by the Minister, in consultation with
the Minister of Finance. 5
(6) The Ombud or deputy Ombud may resign by submitting a written
notice to the Minister at least three calendar months prior to the intended
date of vacation of office, unless the Minister allows a shorter period.
(7) The Minister may, on good cause shown, remove the Ombud or
deputy Ombud from office on the ground of misconduct, incapacity or 10
incompetence or acts contrary to the purpose and principles of this Act,
after affording the person concerned a reasonable opportunity to be heard.
(8) The Minister must make the appointments in such a manner that the
terms of appointment of the Ombud and deputy Ombud overlap by six
months. 15
Powers and functions of Ombud
17G. (1) The Ombud must—

(a) consider and adjudicate complaints by small enterprises and small
enterprise organisations in terms of this Chapter through alternative
dispute resolution mechanisms; 20
(b) initiate an investigation—
(i) if a small enterprise files a complaint in terms of this chapter;
(ii) concerning any alleged prohibited conduct on its own initia-
tive; or
(iii) when directed to do so by the Minister in terms of section 17L; 25
(c) consider and approve the strategic plan of the Office;
(d) consider and decide on capital acquisitions and transactions that have
not been delegated to the Director;
(e) prepare reports on a quarterly basis on the nature and progress on all
complaints and investigations for submission to the Minister and 30
Parliament;
(f) appoint personnel to ensure the efficient management of complaints;
and
(g) make recommendations for amendments to the regulations and policy
guidelines. 35
(2) The Ombud may conduct any business that is required for the proper
maintenance and development of the Office.
(3) For the purposes of subsection (1)(b), the Ombud is—
(a) competent to investigate, on receipt of a complaint by a complainant,
any alleged— 40
(i) unfairness in relation to a contractual arrangement or other
legal relationship between the complainant and any other party
to the complaint;
(ii) abuse or unjustifiable exercise of power or unfair or other
improper conduct or undue delay in performing in terms of a 45
contractual arrangement or other legal relationship between
the complainant and any other party to the complaint; or
(iii) practice, act or omission which results in unlawful or improper
prejudice to a small enterprise.
(4) At any time prior to, during, or after an investigation referred to in 50
subsection (3), the Ombud may if he or she—
(a) is of the opinion that the facts reveal the commission of an offence by
any person, bring the matter to the notice of the relevant authority
charged with prosecutions; or
(b) deems it advisable, refer any matter which has a bearing on an 55
investigation to the appropriate body or authority affected by it, or
make an appropriate recommendation regarding the redress of the
prejudice in question or make any other appropriate recommendation
that the Ombud deems expedient, to the affected body or authority.
11
(5) For the purposes of an investigation, the Ombud may—

(a) summon any person to furnish any information on the subject of the
investigation or who has in his or her possession or under his or her
control any book, document or other object relating to the investiga-
tion, to appear before the Ombud at a time and place specified in the 5
summons, to be questioned or to produce that book, document or other
object; and
(b) designate a person to question that person, under oath or affirmation,
and examine or retain for further examination or for safe custody the
book, document or other object in question. 10
(6) A summons referred to in subsection (5)(a) must—
(a) be in the form determined in the regulations;
(b) contain particulars of the matter in connection with which the person
concerned is required to appear before the Ombud;
(c) be signed by the Ombud or a person authorised by him or her; and 15
(d) be served as determined in the regulations.
(7) (a) The Ombud may, subject to paragraph (b), in the manner he or she
deems fit, make known to any person or body any report, finding,
recommendation or determination in respect of a matter investigated by
him or her. 20
(b) The report, finding, recommendation or determination in respect of
an investigation by the Ombud must, when he or she deems it fit but as soon
as possible, be made available to the complainant and to any person or body
implicated thereby.
(c) A report or finding, recommendation or determination in respect of an 25
investigation by the Ombud must be open to the public, unless the Ombud
is of the opinion that exceptional circumstances require that the report,
finding, recommendation or determination be kept confidential.
Receipt of complaints
17H. (1) Upon receipt of a complaint by the Ombud, the Ombud must— 30
(a) determine whether the requirements of the regulations contemplated
in section 17S have been complied with;
(b) in the case of any non-compliance, act in accordance with the
regulations made under that section; and
(c) otherwise officially receive the complaint. 35
(2) Official receipt of a complaint by the Ombud suspends the running of
prescription in terms of the Prescription Act, 1969 (Act No. 68 of 1969), for
the period after such receipt of the complaint until the complaint has either
been withdrawn or determined by the Ombud.
Prescription of complaints 40
17I. The following jurisdictional provisions apply to the Ombud in

respect of the investigation of complaints:
(a) The Ombud must decline to investigate any complaint which relates to
an act or omission which occurred on or before the date of
commencement of this Act; 45
(b) where the complainant was unaware of the occurrence of the act or
omission, the period of three years commences on the date on which
the complainant became aware or ought reasonably to have become
aware of such occurrence, whichever occurs first;
(c) the Ombud must decline to investigate a complaint if, before the date 50
of official receipt of the complaint, proceedings have been instituted
by the complainant in any Court in respect of a matter which would
constitute the subject of the investigation; and
(d) where any Court or other proceedings are instituted during an
investigation by the Ombud, such investigation must not be proceeded 55
with.
12
Jurisdiction for complaints
17J. The Ombud may, on reasonable grounds, determine that it is more

appropriate that the complaint be dealt with by a Court or through any other
available dispute resolution process, and dismiss the complaint.
5
Resolution of complaints
17K. (1) The Ombud must not proceed to resolve a complaint officially
received, unless the Office—
(a) has, in writing, informed every other interested party to the complaint
of the receipt thereof; 10
(b) is satisfied that all interested parties have been provided with such
particulars as will enable the parties to respond thereto; and
(c) has provided all interested parties the opportunity to submit a response
to the complaint.
(2) The Ombud— 15
(a) may, in resolving an officially received complaint, follow and
implement any alternative dispute resolution procedure which the
Ombud deems appropriate;
(b) may, delineate the functions of conciliation, mediation and arbitration
between various functionaries of the Office; 20
(c) must, in the first instance, explore any reasonable prospect of
resolving a complaint by conciliation or mediation acceptable to all
parties;
(d) may, in order to resolve a complaint speedily by conciliation or
mediation, make a recommendation to the parties, requiring the parties 25
to confirm whether or not they accept the recommendation;
(e) may, where the recommendation is not accepted by a party, require
that party to give reasons for not accepting it and refer the matter for
arbitration;
(f) may, in the event of conciliation and mediation failing to reach 30
resolution, if appropriate, initiate arbitration proceedings to adjudicate
the matter in an expeditious manner; and
(g) may, on terms specified by the Office, mandate any person or persons
to form an arbitral forum to perform any of the functions referred to in
paragraph (e) or (f). 35
(3) Where the parties accept the recommendation contemplated in
subsection (2)(d), such recommendation has the effect of a final determi-
nation by the Office, contemplated in section 17M(1).
(4) For the purposes of any resolution by the Ombud, the provisions of
the Commissions Act, 1947 (Act No. 8 of 1947), regarding the summoning 40
and examination of persons and the administering of oaths or affirmations
to them, the calling for the production of books, documents and objects, and
offences by witnesses, apply with the necessary changes.
Investigation
17L. (1) The Ombud may investigate a matter if— 45

(a) the matter is referred to it by the Minister; or
(b) a significant number of small enterprises are negatively impacted by a
business practice.
(2) For the purposes of any investigation by the Ombud, the provisions of
the Commissions Act, 1947 (Act No. 8 of 1947), regarding the summoning 50
and examination of persons and the administering of oaths or affirmations
to them, the calling for the production of books, documents and objects, and
offences by witnesses, apply with the necessary changes.
13
Determinations by Ombud
17M. (1) The Ombud must in any case where a matter has not been
settled or a recommendation referred to in section 17K(2)(d) has not been
accepted by all parties concerned, make a final determination, which may
include— 5
(a) the dismissal of the complaint; or
(b) the upholding of the complaint, wholly or partially, in which case—
(i) the complainant may be awarded an amount as fair compen-
sation for any financial prejudice or damage suffered; and
(ii) a direction may be issued that the other party concerned take 10
such steps in relation to the complaint as the Ombud deems
appropriate and just.
(2) To make a considered monetary award the Ombud may—
(a) require full disclosure of contractual terms as well as financial
dealings between the contractual parties; 15
(b) determine the appropriate monetary award as contemplated in
subsection (1)(b)(i); and
(c) determine the amount payable to bear interest at a rate, and as from a
date, determined by the Ombud.
(3) The Minister may by regulation determine— 20
(a) the maximum monetary award for a particular kind of financial
prejudice or damage;
(b) different maximum monetary awards for different categories of
complaints; or
(c) the granting of costs, including costs against either party in favour of 25
the Office or the other party if in the opinion of the Ombud—
(i) the party’s conduct was improper or unreasonable; or
(ii) the party was responsible for an unreasonable delay in the
finalisation of the relevant investigation: Provided that an
amount payable under a cost award bears interest at a rate and 30
as from a date determined by the Ombud.
(4) Any award of interest by the Ombud in terms of subsection (2) may
not exceed the rate which a Court would have been entitled to award, had
the matter been heard by a Court.
(5) The Office must reduce a determination to writing, including the 35
reasons therefor, sign the determination, and send copies thereof to all
parties concerned with the complaint and to the clerk or registrar of the
Court which would have had jurisdiction in the matter had it been heard by
a Court.
(6) A determination of the Ombud finalised according to subsection (5) 40
may only be taken up on review specifically on the following grounds—
(a) illegality;
(b) procedural unfairness; or
(c) irrationality.
(7) A determination is regarded as a civil judgment of a Court, had the 45
matter in question been heard by a Court, and must be so noted by the clerk
or registrar, as the case may be, of that Court.
(8) (a) A writ of execution may, in the case of a determination amounting
to a monetary award, be issued by the clerk or the registrar referred to in
subsection (5) and may be executed by the sheriff of such Court after 50
expiration of a period of two weeks after the date of the determination.
(b) Any other determination must be given effect to in accordance with
the applicable procedures of a Court after expiration of a period of two
weeks after the date of the determination.
Staff of Office 55
17N. (1) In order to perform the functions of the Office, the Ombud
must—
(a) employ a person as director of the Office who is the administrative
head of the Office; and
(b) employ such administrative staff as may be necessary. 60
14
(2) The Ombud must appoint the person referred to in subsection (1)(a)
for an agreed term not exceeding five years which may be renewed for one
additional term not exceeding five years and on the conditions as the
Minister, in consultation with the Minister of Finance, may determine.
(3) The director is responsible for the general administration of the 5
Office, and must—
(a) manage and direct the activities of the Office, subject to the direction
of the Ombud;
(b) supervise the administrative staff of the Office;
(c) enter into contracts with service providers and accept liability on 10
behalf of the Office for the expenses incurred as a result of such
services being rendered; and
(d) perform any other function necessary in accordance with this Act.
(4) The Minister must, after consultation with the Minister of Finance,
determine— 15
(a) the director’s remuneration, allowances, benefits and other terms and
conditions of employment; and
(b) the staff establishment of the Office, the remuneration, allowances,
benefits, and other terms and conditions of appointment of the
members of staff. 20
Delegation by Ombud, deputy Ombud and director
17O. (1) The Ombud may delegate any of his or her powers and assign
any of his or her duties to a deputy Ombud or the director.
(2) A deputy Ombud or the director, as the case may be, may delegate any
of his or her powers and assign any of his or her duties to an employee of 25
the Office.
(3) A delegation contemplated in subsection (1) or (2)—
(a) may be made subject to such conditions as the Ombud, a deputy
Ombud or the director, as the case may be, may determine;
(b) must be communicated to the delegatee in writing; and 30
(c) may be amended or withdrawn in writing by the Ombud, a deputy
Ombud or the director, as the case may be.
(4) Despite a delegation or assignment contemplated in subsection (1) or
(2), the Ombud, a deputy Ombud or the director, as the case may be,
remains accountable for any power delegated or function assigned, and is 35
not divested of any power or duty so delegated or assigned.
Funding of Office
17P. (1) Expenditure in connection with the administration and

functioning of the Office must be defrayed from—
(a) money appropriated by Parliament for this purpose; 40
(b) any fees payable in terms of this Chapter; and
(c) funds accruing to the Office from any other source.
(2) The Office must deposit all funds in an account opened with a bank
registered under the Banks Act, 1990 (Act No. 94 of 1990).
(3) The Office may invest funds which are not required for immediate 45
use—
(a) in a call account or short-term fixed deposit with any registered bank
contemplated in subsection (2); or
(b) in an investment account with the Public Investment Corporation
established by section 2 of the Public Investment Corporation Act, 50
2004 (Act No. 23 of 2004).
(4) Funds standing to the credit of the Office in the account mentioned in
subsection (2) at the end of the financial year, as well as funds invested
under subsection (3), must, subject to section 53(3) of the Public Finance
Management Act, be carried forward to the next financial year. 55
15
Accountability
17Q. (1) Subject to the Public Finance Management Act, the director—
(a) is charged with the responsibility of accounting for money received or
paid out for or on account of the administration and functioning of the
Office; and 5
(b) must cause the necessary accounting and other related records to be
kept.
(2) The financial year of the Office is the period from 1 April to 31 March,
except that the first financial year of the Office begins on the date on which
this Chapter comes into operation, and ends on 31 March of the following 10
year.
(3) Within three months after the end of each financial year, the director
must prepare financial statements in accordance with established account-
ing practice, principles and procedures, comprising—
(a) a statement, with suitable and sufficient particulars, reflecting the 15
income and expenditure of the Office during the preceding financial
year; and
(b) a balance sheet showing the state of its assets, liabilities and financial
position as at the end of that financial year.
(4) The Auditor-General must, in accordance with the Public Audit Act, 20
2004 (Act No. 25 of 2004), ensure that the financial statements of the Office
are audited each year.
Disestablishment and liquidation of Office
17R. (1) The Office may not be disestablished or liquidated, except by an

Act of Parliament. 25
(2) In the event of such disestablishment or liquidation, the surplus assets
of the Office, if any, accrue to the Agency.
Regulations applicable to Ombud
17S. (1) The Minister must make regulations including different

regulations in respect of different categories of complaints or investigations 30
by the Ombud, regarding—
(a) (i) any matter which is required or permitted under this Act to be
regulated by regulation;
(ii) the category of small enterprises qualifying as complainants;
(iii) the types of complaints justiciable by the Ombud; 35
(iv) the rights of complainants in connection with complaints,
including the manner of submitting a complaint to the Ombud;
(v) the rights and duties of any other party to the complaint on
receipt of a complaint, particularly in connection with the
furnishing of replies to the complainant; 40
(vi) the rights of a complainant to submit a complaint to the Ombud
where the complainant is not satisfied with a reply received
from the party concerned;
(vii) the circumstances under which the Ombud may dismiss a
complaint without consideration of its merits; and 45
(viii) the reasonable time limit for any aspect of the proceedings
before the Ombud and the extension of any time limit;
(b) the payment to the Office by a party involved in a complaint submitted
to the Ombud, of case fees in respect of the consideration of the
complaint by the Ombud; or 50
(c) any other administrative or procedural matter necessary or expedient
for the better achievement of the objects of this Chapter, but which is
not inconsistent with a provision of this Act.
(2) The Minister must—
(a) ensure that no regulation made under subsection (1) undermines or 55
affects the independence of the Ombud in any material way; and
(b) publish the regulations made under subsection (1) in the Gazette.
16
Record-keeping
17T. (1) The Ombud must keep proper files and records in respect of
complaints as well as a record of any determination proceedings conducted
in terms of section 17 and considering the provisions of the Protection of
Personal Information Act. 5
(2) Any interested person may, subject to the discretion of the
Ombud and applicable regulations of confidentiality, obtain a copy of any
record on payment of a fee determined by the Ombud.
Annual Report of Ombud 10
17U. (1) The Office must prepare and submit to the Minister an annual
report, as determined in the regulations, within three months after the end of
its financial year.
(2) The annual report referred to in subsection (1) must include the
following documents: 15
(a) The audited financial statements prepared in terms of this Chapter;
(b) the report prepared in terms of the Public Audit Act, 2004;
(c) a report of the activities undertaken in terms of the functions of the
Ombud set out in this Chapter; and
(d) such other information as may be prescribed. 20
(3) The Minister must table in Parliament each annual report submitted in
terms of this section.
Penalties
17V. (1) A person who commits any act in respect of the Ombud or an 25
investigation by the Ombud which, if committed in respect of a Court of
law, would have constituted contempt of Court, is guilty of an offence and
liable on conviction to a penalty which may be imposed on a conviction of
contempt of Court.
(2) A person who— 30
(a) anticipates a determination of the Ombud in any manner calculated to
influence the determination; or
(b) wilfully interrupts proceedings conducted by the Ombud,
is guilty of an offence and liable on conviction to a fine or to imprisonment
for a period not exceeding one year. 35
Promotion of stakeholder education
17W. The Office may—

(a) take any steps conducive to stakeholder education and the promotion
of awareness of the nature and availability of the Ombud and other
enforcement measures established by or in terms of this Chapter, 40
including arrangements—
(i) with organs of state;
(ii) representative bodies of business; and
(iii) other stakeholders,
to assist in the provision of information to the general public on matters 45
relating to the work of the Ombud; and
(b) take steps conducive to stakeholder education and promotion of the
awareness of the nature and availability of the Ombud and other
enforcement measures established by or in terms of this Chapter,
including arrangements to accommodate— 50
(i) rural stakeholders; and
(ii) stakeholders found in underserved urban areas.
17
Promotion of inter-agency co-ordination and collaboration
17X. The Office may take any steps in line with the Intergovernmental
Relations Framework Act, 2005 (Act No.13 of 2005), to facilitate, promote
and establish inter-agency collaboration and co-ordination measures
including institutional arrangements, agreements and joint programmes 5
with bodies or institutions such as the Competition Commission, Consumer
Commission, Companies Tribunal and the Companies and Intellectual
Property Commission.
Unfair trading practices
17Y. (1) The Minister— 10

(a) may, by notice in the Gazette, declare certain practices in relation to
small enterprises to be prohibited unfair trading practices;
(b) may, subject to subsections (2) to (5), instruct that a comprehensive
investigation be undertaken by the Ombud into an alleged unfair
trading practice on recommendation by the Ombud; 15
(c) must consult with the Minister responsible for trade, industry and
competition before issuing a notice contemplated in paragraph (a);
and
(d) must, in the performance of a function in terms of this section, consult
with any Minister responsible for a national function affected by the 20
performance of that function.
(2) Small enterprises have the right to trade and transact freely,
including—
(a) the right to unambiguous business contract;
(b) the right to a reasonable payment date and interest on late payments; 25
(c) the right to disclosure of relevant information; and
(d) the right to accountability from large enterprises and government
entities.
(3) The practices contemplated in subsection (1)(a) include—
(a) ambiguous contract terms; 30
(b) lack of fair contracts;
(c) retrospective unilateral changes to business arrangements;
(d) the transfer of full commercial risk to the weaker party;
(e) the use of information outside the purpose for which the other party
discloses it; 35
(f) sudden and unjustified termination of a commercial relationship or
termination without reasonable notice;
(g) long-term exclusive agreements aimed at preventing weaker parties
from entering an existing market;
(h) unfair exclusionary compliance requirement practices; or 40
(i) unfair contract terms in retail and commercial leases for small
enterprises.
(4) The following principles must guide the Minister and the Ombud in
considering whether or not a declaration contemplated in subsection (1)
may be made— 45
(a) that the practice concerned, directly or indirectly, has or is likely to
have the effect of—
(i) harming the sustainability and competitiveness of small
enterprises;
(ii) unreasonably prejudicing any small enterprise; 50
(iii) deceiving any small enterprise; or
(iv) unfairly affecting any small enterprise; and
(b) that if the practice is allowed to continue, one or more objects of this
Act will, or is likely to be defeated.
(5) Before making a declaration contemplated in subsection (1), the 55
Minister must—
(a) by notice in the Gazette—
(i) publish an intention to make the declaration and give reasons
therefor;
18
(ii) indicate where a copy of the draft declaration may be obtained;

and
(iii) invite interested persons to make written representations in
relation thereto, so as to reach the Minister within the time
stipulated in the notice after the date of the publication of that 5
notice; and
(b) consider any representations received in terms of paragraph (a)(iii).
(6) An affected party may not, on or after the date of the publication of a
notice referred to in subsection (1), carry on the practice concerned.
(7) The Ombud may direct a party who, on or after the date of the 10
publication of a notice referred to in subsection (1), carries on the practice
concerned in contravention of that notice, to rectify, to the satisfaction of
the Ombud, any harm which was caused by, or arose out of, the carrying on
of the practice concerned.
(8) Any party who, under subsection (7), is directed to rectify any harm, 15
must do so within 60 business days after such direction is issued.
(9) The Ombud may, after affording the party concerned a reasonable
opportunity to make representations, impose an administrative penalty in
the amount prescribed by the Minister for any contravention of subsection
(6) or failure by the party concerned to comply with subsection (7), read 20
with subsection (8).’’.
Substitution of section 19 of Act 102 of 1996, as amended by section 6 of Act 26 of

2003 and section 6 of Act 29 of 2004
6. The following section is hereby substituted for section 19 of the principal Act:
‘‘National Review of Small Enterprises 25
19. (1) The Director-General must, on the request of the Minister,

compile a review called the National Review of Small Enterprises which
must cover areas defined by the Minister or the Director-General,
including—
(a) particulars of progress achieved in furtherance of the objects of the 30
National Small Business Support Strategy;
(b) summaries of any findings or recommendations of the Director-
General in respect of legislation, proposed legislation and administra-
tive practices which impact on the small enterprise sector;
(c) an outline of new developments and trends with regard to the small 35
enterprise sector in South Africa;
(d) reports on the growth and decline of small enterprise according to
sector, size and region; and
(e) a statistical analysis of the contribution of the small enterprise sector to
the economy, to export promotion, to rural development and to the 40
level of inclusion of previously disadvantaged groups into the
economy.
(2) The Director-General may request the assistance of the Advisory
Body, the Agency or the Office when compiling the review.
(3) The Director-General must complete the review timeously and 45
thereafter submit it to the Minister and the Minister must table it in
Parliament.’’.
Amendment of section 20 of Act 102 of 1996, as amended by section 6 of Act 29 of

2004
7. Section 20 of the principal Act is hereby amended by the substitution for subsection 50
(2) of the following subsection:
‘‘(2) The Minister may, in order to achieve the objects of this Act, by notice in the
Gazette [amend the Schedule] make regulations, setting the criteria to determine
the classification of micro, small and medium enterprises, to account for inflation[,]
and macro-economic shifts in the economy[, any legislation affecting small 55
enterprises, and any other matter which could have an effect on the
functionality of the Schedule].’’.
19
Repeal of Schedule to Act 102 of 1996, as substituted by section 7 of Act 26 of 2003

and amended by section 6 of Act 29 of 2004
8. The schedule to the principal Act is hereby repealed.
Amendment of laws
9. The laws mentioned in the Schedule are hereby amended to the extent set out in the 5
third column of that Schedule.
Transitional arrangements
10. (1) In this section, unless the context otherwise indicates—

‘CBDA’ means the Co-operative Banks Development Agency as established by
Chapter IX of the Co-operative Banks Act, 2007 (Act No. 40 of 2007); 10
‘SEDA’ means the Small Enterprise Development Agency established in terms of
Chapter 3 of the National Small Enterprise Act, 1996 (Act No. 102 of 1996), prior
to its amendment by this Act; and
‘SEFA’ means the Small Enterprise Finance Agency, a state owned company
registered under company registration number 1995/011258/06. 15
(2) With effect from the date of commencement of this section—
(a) the CBDA, SEDA and SEFA are disestablished; and
(b) any board of an entity referred to in paragraph (a), established in terms of its
founding legislation or other legal instrument must be dissolved.
(3) A person who is employed by the CBDA, SEDA and SEFA, immediately before 20
the commencement of this section must be transferred to the Agency in accordance with
section 197 of the Labour Relations Act, 1995 (Act 66 of 1995).
(4) For purposes of the Income Tax Act,1962 (Act No. 58 of 1962), no change of
employer must be regarded as having taken place when a person contemplated in
subsection (3) takes up employment at the Agency. 25
(5) On the date of commencement of this section, or on a date determined by the
Minister, all assets, liabilities, rights and obligations of the CBDA, SEDA and SEFA, as
the case may be, including the unexpended balance of appropriations, authorisations,
allocations and other funds employed, held or used in connection with the furtherance of
its objectives and functions, pass to the Agency. 30
(6) Anything done by or on behalf of the CBDA, SEDA and SEFA is deemed to have
been done by the Agency, subject to this Act.
(7) The Director-General must, in writing, as soon as practicable after the
commencement of this section, notify the Boards of the CBDA, SEDA and SEFA, the
Companies and Intellectual Property Commission and the Registrar of Deeds of the 35
provisions of this section.
(8) On receipt of the notification contemplated in subsection (7) the Companies and
Intellectual Property Commission and the Registrar of Deeds must make the necessary
entries and endorsements on any register or document in the registration office, or
documents submitted to that Commission or Registrar. 40
(9) No transfer duties, stamp duties, fees or taxes will be payable for purposes of
subsection (5) or (8).
Substitution of long title of Act 102 of 1996
11. The following long title is hereby substituted for the long title of the principal Act:
‘‘To provide for the establishment of the Advisory Body and the Small 45
Enterprise Development Finance Agency; to provide for the functioning of the
Small Enterprise Development Finance Agency; to ensure the provision of
financial and non-financial support services to small enterprises; to promote
the development of sustainable and responsible co-operative banking; to
provide for the establishment of the Office of the Small Enterprise Ombud 50
Service; to enable an equitable trading environment for small enterprises
through the provision of affordable and effective access to justice; to empower
the Minister to declare certain practices in relation to small enterprises to be
prohibited as unfair trading practices; to provide guidelines for organs of state
in order to promote small business in the Republic; and to provide for matters 55
incidental thereto.
20
Short title and commencement
12. This Act is called the National Small Enterprise Amendment Act, 2023, and
comes into operation on a date fixed by the President by Proclamation in the Gazette.
21
Schedule
LAWS AMENDED
(Section 9)
No. and year of Short title Extent of repeal or amendment
Act
Act 40 of 2007 Co-operative Amendment of section 1 of Act 40 of 2007

Banks Act, 2007 1. Section 1 of the Co-operative Banks Act, 2007, is hereby
amended—
(a) by the deletion of the definition of ‘‘Agency’’;
(b) by the deletion of the definition of ‘‘representative body’’;
(c) by the deletion of the definition of ‘‘rule’’; and
(d) by the deletion of the definition of ‘‘support organisation’’.
Amendment of section 1A of Act 40 of 2007
2. Section 1A of the Co-operative Banks Act, 2007, is hereby
amended—
(a) by the substitution for subsection (2) of the following sub-
section:
‘‘(2) A reference in this Act to the Authority [or the
Agency] determining or publishing a matter by notice in
the Gazette must be read as including a reference to the
Authority [or the Agency] determining or publishing the
matter by notice published in the Register.’.
(b) by the substitution in subsection (3) for the words preceding
paragraph (a) of the following words:
‘‘(3) Unless expressly provided otherwise in this Act,
or this Act requires a matter to be prescribed by regula-
tion in terms of section 86, [or permits a matter to be
prescribed by the Agency, including in a rule in terms
of section 57,] a reference in this Act to a matter being—
(c) by the deletion in subsection (6) of paragraph (b);
(d) by the substitution for subsections (7) to (9) of the following
subsections respectively:
‘‘(7) (a) A reference in this Act to the Authority [or the
Agency] announcing or publishing information or a docu-
ment on a web site must be read as a reference to the Au-
thority [or the Agency] publishing the information or
document in the Register.
(b) The Authority [or the Agency] may also publish the
information or document on its web site.
(8) (a) A reference in this Act to a prescribed fee,
[other than a reference to a fee prescribed by the
Agency,] must be read as a reference to the relevant fee
determined in terms of section 237 and Chapter 16 of the
Financial Sector Act.
[(b) The Agency, when determining a fee in terms of
this Act, must comply with the requirements of section
237 and Chapter 16 of the Financial Sector Regulation
Act.]’’.
(9) A reference in this Act to an appeal of a decision of
the Authority [or the Agency] must be read as a reference
to a reconsideration of the decision by the Tribunal in
terms of the Financial Sector Regulation Act.’’; and
(e) by the deletion in subsection (10) of paragraph (b).
Amendment of section 2 of Act 40 of 2007
3. Section 2 of the Co-operative Banks Act, 2007, is hereby
amended by the insertion in paragraph (c) of the word ‘‘and’’ at
the end of subparagraph (i), the deletion of the word ‘‘and’’ at the
end of subparagraph (ii) and the deletion of subparagraph (iii).
amended by the substitution in subsection (1) for paragraph (c) of
the following paragraph:
‘‘(c) borrow money from [the Agency] third parties and mem-
bers, other than deposits referred to in paragraph (a), up
to a percentage of the assets held by it as prescribed by
the Minister;’.
Repeal of Chapters VI and VII of Act 40 of 2007
5. Chapters VI and VII of the Co-operative Banks Act, 2007,
are hereby repealed.
22

Act

amended—
(a) by the substitution for subsection (1) of the following sub-
section:
‘‘(1) The Authority may, in writing, delegate or assign
any of the powers entrusted to the Authority in terms of
this Act and assign any of the duties imposed on the Au-
thority in terms of this Act to any person employed by the
Authority or the South African Reserve Bank, or to the
Financial Sector Conduct Authority[, or, with the concur-
rence of the Minister, to the Agency].’’; and
(b) by the deletion in subsection (4) of paragraphs (a) and (c).
Repeal of Chapter IX of Act 40 of 2007

7. Chapter IX of the Co-operative Banks Act, 2007, is hereby
repealed.

amended by the substitution for the words preceding paragraph
(a) of the following words:
‘‘It is an offence for any co-operative bank[, representative
body, support organisation] or other person to—’’.
Substitution of section 82 of Act 40 of 2007
9. The following section is hereby substituted for section 82 of
the Co-operative Banks Act, 2007:
‘‘Fair administrative action
82. Where a decision or other step of an administrative
nature taken by the Authority [or the Agency] affects the
rights of another person, the Authority [or the Agency] must
comply with the Promotion of Administrative Justice Act,
2000 (Act No. 3 of 2000), unless another fair administrative
procedure has been provided for in this Act or in terms of
the Financial Sector Regulation Act.’’.
10. The following section is hereby substituted for section 84
of the Co-operative Banks Act, 2007:
‘‘Access to records, register and other documentation
84. A regulatory authority must, despite the provisions of any
other law, at the request of the Authority [or Agency] make in-
formation regarding a co-operative bank[, representative body
or support organisation] available to the Authority [or
Agency].’’.
‘‘Indemnity
85. Neither the Authority [or the Agency, or any board
member or employee or managing director thereof, nor a
committee of the Agency or any member thereof] , a
member of the Prudential Committee, a member of a sub-
committee of the Authority, or an employee of the Authority
incurs any liability in respect of any act or omission per-
formed in good faith under or by virtue of a provision in this
Act, unless that performance was grossly negligent.’’.
‘‘Powers of Minister
87. The Minister may delegate any of the Minister’s pow-
ers in terms of this Act, excluding the power to make regu-
lations [and the power to appoint the members of the
Agency], to the Director-General or any other official of the
National Treasury.’’.
23

Act
Amendment of long title of Act 40 of 2007

13. The long title of the principal Act is hereby amended by
the substitution of the following long title:
‘‘To promote and advance the social and economic
welfare of all South Africans by enhancing access to
banking services and sustainable conditions; to promote
the development of sustainable and responsible co-
operative banks and co-operative financial institutions;
to establish an appropriate regulatory framework and
regulatory institutions for co-operative banks and co-
operative financial institutions that protect members of
co-operative banks and co-operative financial
institutions; to provide for the registration of deposit-
taking financial services co-operatives as co-operative
banks and co-operative financial institutions; to provide
for the regulation and supervision of co-operative banks
and co-operative financial institutions; [and to provide
for the establishment of a development agency for co-
operative banks]; and to provide for matters connected
therewith.’’.
Amendment of Arrangement of Sections of Act 40 of 2007
14. The Arrangement of Sections of the Co-operative Banks
Act, 2007, is hereby amended—
(a) by the deletion of the items for Chapters VI and VII, items
31 to 40; and
(b) by the deletion of the items for Chapter IX and items 54 to
74.

15. Section 49 of the Co-operatives Act, 2005 (hereinafter re-
ferred to as ‘‘the principal Act’’), is hereby amended by the sub-
stitution in paragraph (a) of subsection (1) for subparagraph (ii)
of the following subparagraph:
‘‘(ii) in the case of an auditor, is not registered with the
South African Institute for Chartered Accountants or
does not satisfy the requirements for registration as an
auditor as contemplated in Chapter III of the Auditing
Profession Act; or’’.
Amendment of section 91B
16. Section 91B of the principal Act is hereby amended by the
substitution for paragraph (b) of the following paragraph:
‘‘(b) provide financial and non-financial assistance to co-
operatives to enable the development of co-operatives
[,provided that deposit-taking financial co-opera-
tives will not be eligible for financial support, but
will be eligible for non-financial support];’’.
Act No. 14 of Co-operatives Amendment of section 91GG of Act 14 of 2005

2005 Act, 2005 17. Section 91GG of the principal Act is hereby amended—
(a) by the substitution for the heading of the following heading:
‘‘Establishment, composition and functions of National
Interdepartmental Co-ordination Committee on Co-
operatives and Inter-Provincial [Coordination] Co-
ordination Committee on Co-operatives’’.
(b) by the substitution for subsection (1) of the following sub-
section:
‘‘(1) The National Interdepartmental Co-ordination
Committee on Co-operatives and [The] the Inter-Provin-
cial Co-ordination Committee on Co-operatives [is] are
hereby established.’’.
(c) by the insertion of the following subsection after subsection
(1), the subsequent subsections becoming subsection (3),
(4), (5), (6), (7) and (8) respectively:
‘‘(2) The National Interdepartmental Co-ordination
Committee on Co-operatives consists of the following
members appointed by the Minister:
(a) One person to represent the Minister; and
(b) one person in the full-time employment of—
(i) the Department; and
(ii) such other national departments of state as identi-
fied by the Minister.’’.
24

Act
(d) by the substitution for subsection (3) of the following

subsection:
‘‘(3) The Minister must appoint from among the
members of the National Interdepartmental Co-ordination
Committee on Co-operatives and the Inter-Provincial Co-
ordination Committee on Co-operatives a chairperson and
a deputy chairperson for each Committee respectively.’’.
and
(e) by the substitution for subsection (5) of the following sub-
section:
‘‘(5) A member of the National Interdepartmental Co-
ordination Committee on Co-operatives or the Inter-Pro-
vincial Co-ordination Committee on Co-operatives may
designate an alternate to attend a meeting of the [Inter-
Provincial Coordination] Committee [on Co-operatives
in his or her place] on his or her behalf.’’.
25
MEMORANDUM ON THE OBJECTS OF THE NATIONAL SMALL

ENTERPRISE AMENDMENT BILL
1. PURPOSE
The National Small Enterprise Amendment Bill, 2023 (‘‘the Bill’’), seeks to amend
the National Small Enterprise Act, 1996 (Act No. 102 of 1996) (‘‘the Act’’),
primarily to provide for the establishment and registration, in terms of the
Companies Act, 2008 (Act No. 71 of 2008), of the Small Enterprise Development
Finance Agency (SEDFA) and the subsequent disestablishment of the Small
Enterprise Financing Agency (Sefa), the Co-operative Banks Development Agency
(CBDA) and the Small Enterprise Development Agency (Seda) and for the
establishment of the Office of the Small Enterprise Ombud Service (‘‘the Office’’).
The Bill furthermore enables the Minister to declare certain practices in relation to
small enterprises to be prohibited as unfair trading practices and make regulations
with regard thereto. The Bill also proposes an amendment to section 20(2) of the
Act to bring that section in line with a recent Constitutional Court judgment.
1.1 Establishment of SEDFA
1.1.1 The establishment of the SEDFA gives effect to a Cabinet decision to

enable and provide for integrated government support (both financial
and non-financial) to small enterprises, which are defined as including
co-operatives. In addition, the inclusion of the roles and functions of
the identified three entities into SEDFA contributes to the Cabinet
endorsed rationalisation of the number of public entities.
1.1.2 The purpose of SEDFA will be to ensure that the small enterprise and
co-operative ecosystem is able to offer the most efficient business
advice, business development services, investment support, business
facilitation and incubator support. The vision of the SEDFA is to be a
leading business development entity that will drive economic trans-
formation and inclusive growth in the economy through ensuring the
provision of customised financial and non-financial support and
greater access to finance for small enterprises and co-operatives.
1.1.3 The Bill provides for SEDFA to be established as a state-owned

company in terms of the Companies Act and the State to be the sole
shareholder with the Minister as the sole representative of the
shareholder. SEDFA operations are subject to the PFMA and the
Companies Act and SEDFA exercises its powers and the performance
of its functions through the Board.
1.1.4 The Bill provides for SEDFA to design and implement financial and
non-financial support programmes for small enterprises, promote a
service delivery network that increases the contribution of small
enterprises to the South African economy and enhances economic
growth, job creation and equity to historically disadvantaged commu-
nities and to promote and develop co-operative banks and co-
operative financial institutions.
1.1.5 The Bill provides for bespoke shareholder powers and duties and, in
the case of material and persistent failures to meet objectives and
targets, contains shareholder intervention mechanisms which can be
exercised after due process has been followed.
1.1.6 SEDFA’s powers and functions as well as the role, functions and duties
of the Board are enunciated in the Bill.
1.1.7 The finances for SEDFA will be derived from money appropriated by
Parliament, grants, donations and bequests made to the SEDFA,
funding raised through investments and money lawfully obtained or
raised by SEDFA from any other source. In the instance of money
26
appropriated by Parliament, the Bill sets the criteria of its use and
associated reporting requirements.
1.1.8 The Bill sets the criteria and composition of the Board and requires the
Board to constitute specified board committees, including an audit and
risk committee and a board nominations committee, to assist in the
public and transparent board appointment process. The Bill also sets
standards for the conduct of directors and reporting requirements
which are aimed at promoting the transparency of SEDFA’s operations
so as to ensure value for money in the use of public funds.
1.2 Establishment of Ombud Office
1.2.1 The Bill provides for the establishment of the Office of the Small
Enterprise Ombud Service and for the functions of the Office to be
performed by an Ombud assisted by any deputy Ombud operating in
regional offices, when necessary. The Ombud is required to consider
and dispose of complaints by small enterprises in relation to the
interpretation of the terms of an agreement for the procurement of
goods or services or the late or non-payment of amounts due and
payable to the small enterprises.
1.2.2 The Bill provides for the Ombud to consider and dispose of
complaints in a procedurally fair, economical, and expeditious manner
and by reference to what is equitable in all the circumstances, with due
regard to—
(a) the contractual arrangement or other legal relationship between
the complainant and any other party to the complaint; and
(b) the provisions of the Act.
1.2.3 The Bill enables the Office to make recommendations to the Minister
responsible for small business development to, by notice in the
Gazette, declare certain practices in relation to small enterprises to be
prohibited unfair trading practices and to provide for guidelines as to
the practices that may be declared to be prohibited unfair practices and
the rights of small enterprises. It furthermore empowers the Minister
to make regulations relating to unfair trading practices.
1.2.4 The mischief the Bill aims to remedy is the lack of effective and
affordable access to a justice mechanism for small enterprises.
Business-to-business disputes and late or non-payment of amounts
due and payable to small enterprises, are a significant reality in the
lives of small enterprises across the world, with very adverse
implications on their growth.
1.2.5 Therefore, like all businesses, small enterprises need effective

mechanisms to resolve their disputes in an efficient and cost-effective
manner. In most, if not all, jurisdictions the most prevalent way of
resolving business-to-business disputes legally is through the courts,
that is, through litigation. The litigation route for resolving disputes,
however, places small enterprises at a significant disadvantage relative
to their larger business counterparts, for at least three reasons:
(a) The financial cost of unresolved disputes is heavily borne by
small enterprises;
(b) even where the amount involved is large, going to court is still a
prohibitive proposition for small enterprises; and
(c) the process is cumbersome, time consuming and, of course,
expensive.
In either of the above situations, the cost to the small enterprise of an
unresolved dispute may not be limited to the actual amount in dispute
only but may extend to loss of the business relationship with the
customer, which means loss of future revenue for the small enter-
prises.
27
1.2.6 Based on the above, there is a need for legislation establishing a Small
Enterprise Ombud Service to consider and dispose of complaints by
small enterprises.
1.2.7 The Bill provides, inter alia, for—

● the functions, purpose, staff and funding of the Ombud Service;
● appointment by the Ombud, of a director as the administrative head
and chief executive officer of the Office;

● application processes for the settling of disputes where one party is
a small enterprise, which disputes include matters pertaining to the

interpretation of service agreements and late or non-payment of
amounts owed and payable;
● the process to resolve disputes and matters related thereto; and
● the orders that an adjudicator will be entitled to make upon due
consideration of a matter and the right to appeal an adjudicator’s

order to the High Court on a question of law.
1.3 Small enterprise definition and Schedule to the Act
The definition of small enterprise, amongst others, envisages the setting out of
the criteria to be used to determine the different categories of small
enterprises. The objective is to reduce the number of size categories as well as
criteria to simplify the classification of small enterprises and to enable the use
of evidence-based data. The size category ‘‘very small’’ and criteria ‘‘asset
value’’ are to be removed. The size category ‘‘very small’’ to be subsumed into
the size category ‘‘small’’ because users found it not to be useful and to allow
for alignment with international best practice. There is no reliable and
evidence-based data available to support the criteria of asset value.
2. CLAUSE BY CLAUSE ANALYSIS
2.1 Clause 1 of the Bill seeks to amend section 1 of the Act in order to amend,
delete, insert and substitute certain definitions.
2.2 Clause 2 seeks to insert a new section 1A in the Act to provide for the
application of the Act.
2.3 Clause 3 seeks to insert section 4 in the Act to provide for the report of the
Advisory Body.
2.4 Clause 4 seeks to substitute Chapter 3 of the Act in order to provide for,
amongst others, the establishment and functions of the Small Enterprise
Development Finance Agency.
2.5 Clause 5 seeks to insert a new Chapter 3A into the Act. The provisions of the
proposed Chapter provide, amongst others, for the establishment of the Office,
the appointment of the Ombud and any necessary deputy Ombud, the powers
and functions of the Ombud, the manner of dealing with complaints,
determinations by the Ombud, staff of the Office, delegation of powers,
funding of the Office and the making of regulations applicable to the Ombud.
The proposed Chapter further provides for matters such as the application of
the provisions of the Public Finance Management Act, 1999 (Act No. 1 of
1999), to the Office and the accountability of the director of the Office, the
annual report of the Office, penalties for offences in relation to disrupting
investigations by the Ombud and wilfully interrupting the proceedings
conducted by the Ombud, the promotion of stakeholder education and
empowering the Minister responsible for small enterprise development to
declare certain practices in relation to small enterprises to be prohibited unfair
trading practices. In terms of the proposed section 17Y under the new Chapter
3A, the Minister responsible for small business development may, on
recommendation of the Ombud, by notice in the Gazette, declare certain
practices in relation to small enterprises to be prohibited unfair trading
28
practices. The proposed section further gives guidance as to the practices that
may be declared to be prohibited unfair trading practices by the Minister and
lists the rights of small enterprises.
2.6 Clause 6 seeks to substitute section 19 of the Act to provide for the
Director-General responsible for small business development to conduct a
national review of small enterprises.
2.7 Clause 7 seeks to amend section 20 of the Act in order to empower the
Minister responsible for small business development to make regulations
setting the criteria to determine the classification of micro, small and medium
enterprises. This amendment is meant to bring the provisions of the Act in line
with the decision in Smit v Minister of Justice and Correctional Services and
Others,* where the Constitutional Court declared section 63 of the Drugs and
Drug Trafficking Act, 1992 (Act No. 140 of 1992) to be inconsistent with the
Constitution of the Republic of South Africa, 1996 (‘‘the Constitution’’), and
invalid to the extent that it purports to delegate plenary legislative power to
amend Schedules 1 and 2 to the Drugs and Drug Trafficking Act to the
Minister of Justice and Correctional Services.
2.8 Clause 8 seeks to repeal the Schedule to the Act as a consequence of the
amendment effected in terms of clause 7 above.
2.9 Clause 9 seeks to provide for the amendment of certain laws as a consequence
of the establishment of the Small Enterprise Development Finance Agency.
2.10 Clause 10 seeks to provide for transitional arrangements necessitated by the

establishment of the Agency.
2.11 Clause 11 seeks to provide for the amendment of the long title of the Act to
highlight the major amendments noted above.
2.12 Clause 12 provides for the short title and commencement of the Act.
3. CONSULTATION
3.1 Initial consultations were undertaken with five regulatory institutions, namely
the Companies Tribunal, the Competition Tribunal, the National Consumer
Tribunal, the Tax Ombud and the B-BBEE Commission. These consultations
had two objectives: (1) To learn from the experiences of these institutions in
delivering ADR services within their areas of mandate and to seek input
towards the set up and future operations of the envisaged ADR mechanism for
small enterprises; and (2) to scope options such as whether there was any
scope to incorporate the envisaged small enterprise ADR mechanism within
an existing institution, in order to avoid duplication or if a small enterprise
ADR mechanism would need to be a separate entity.
In addition, five stakeholder engagement workshops were held in Cape Town,

Durban, Johannesburg, Mangaung and Polokwane. The purpose of these
workshops was threefold: (1) to present and seek feedback on the position
paper and the overall small enterprise ADR initiative; (2) to learn from
stakeholders about the nature of business to business disputes experienced by
small enterprises and how they currently deal with them; (3) to seek input on
the modalities of the establishment of the envisaged small enterprise ADR
mechanism. Participants at these workshops represented a range of actors in
small business development, including law academics and legal practitioners,
business organisations, provincial and local government, and small enter-
prises themselves.
* CCT 100/09 [2010] ZACC 10.

29
3.2 Stakeholder consultations, specifically aimed at resolving business-to-

business disputes and unfair trading practices, were also undertaken.
4. IMPLICATIONS FOR PROVINCES
None.
5. FINANCIAL IMPLICATIONS FOR STATE
5.1 SEDFA
The PFMA prescribed business case for the establishment of SEDFA provides
detailed financial information as to the initial level of funding that the new
entity should receive based on which of three proposed scenarios are
ultimately endorsed by the State.
Funding for the merged entity will comprise of a mix of initial capitalisation,
annual transfers, strategic investment income, donor funding, CSI and ESG
funds, fund management fees and property income. Significant funding from
fiscus is required for business development and related services as well as
eco-system development.
Taking note of the proposed external reporting framework, three scenarios

have been proposed with regards to the initial level of funding that the new
entity should receive. These are:
● Scenario 1: The Baseline Scenario which assumes that the merged entity’s
headcount, branch network, performance indicators, and efficiencies will be
as provided for each entity’s 2023 MTEC submission.
● Scenario 2: A refuelled entity which provides for the recapitalising of the

financial support activities of the merged entity, as well as increasing
funding for the merged entity’s incubator, technology transfer assistance,
supplier development partnership, informal micro-enterprise development,
township and rural entrepreneurship programmes and expanding the
number of access points. The additional funding for this scenario over and
above the baseline scenario is as shown in the table below.
Table 1: Additional annual funding needed for the scenario 2 — refuelled

entity compared to the baseline scenario
Year 1 Year 2 Year 3 MTEF
Support Area
R’000’ R’000’ R’000’ R’000
Additional funding needed for 2 448 000 2 788 450 3 032 273 8 268 723
non-financial support activities
financial support activities
Total Additional Funding 9 598 000 10 892 800 12 177 923 32 668 723
Source: DSBD MTEF bilateral discussion document
● Scenario 3: A super-refuelled entity which assesses the funding needed by

the merged entity to increase its market penetration to 40% of the number of
formal small enterprises. This model assumes that the growth will be driven
by the same product profile as scenario 2 and that the resultant increase in
non-financial support will trigger a similar growth in demand for financial
support. The resultant additional funding is as shown in the table below.
30
Table 2: Additional annual funding needed for the scenario 3 — refuelled

entity compared to the baseline scenario
Year 1 Year 2 Year 3 MTEF
Support Area
R’000’ R’000’ R’000’ R’000
non-financial support activities
compared to baseline scenario
financial support activities com-
pared to baseline scenario
Total additional funding com- 20 709 926 26 505 025 32 657 764 79 872 714
pared to baseline scenario
Source: DSBD MTEF bilateral discussion document and team analysis
Although scenario 1 requires the least funding, it scores the lowest in terms of
overall developmental impact and financial position. Scenario 3, whilst
requiring the highest level of funding, scores the highest in terms of
developmental impact and financial position.
5.2 The Office
5.2.1 An initial estimated amount of R3 500 000,00 (Three Million Five

Hundred Thousand Rand) has been allocated for the implementation
in FY 2024/25. This budget provides for the costs of setting up the
Ombud Office and systems, as well as recruiting staff, with full
operations commencing in year 2, R20 million per annum to operate as
summarized below:
Table 3: Estimated Total Costs (Setup and Annual)

MTEF 2024/25 2025/26 2026/27 2026/27 Notes
Budget (Setup)
Personnel 8,491,833 8,661,669 8,834,903 2% annual

escalation
Goods & 1,000,000 1,698,367 1,783,285 1,872,449 5% annual

services escalation
Capital 2,500,000 500,000 500,000 500,000 Estimate for

Expendi- ICT (Case
ture M&E System)
Total 3,500,000 20,690,199 22,944,954 25,607,352 20% annual

escalation
SMME’s 0 200 240 288

assisted
5.2.2 To mitigate against this cost without compromising on the quality,

skill, and expertise of the Ombud, it will be for the Minister to appoint
a retired judge which will mean that the personnel costs of the Ombud
will not form part of the budget. It is envisioned that the cost estimates
in the detailed business case and more so the implementation plan will
provide the information for populating the financial management
systems for the Ombud Service once established. It should therefore
also support the transfer payments to be made from the DSBD to the
Ombud Service per the effective date of establishment (previously
foreseen as1 April 2021).
5.2.3 The cost to establish the Ombud Service is based on available

information at the time of preparation. It should be noted that because
the detailed business case has yet to be completed, it should be
considered that the budget is prepared in a dynamic environment, and
as such is prepared at a high level, with a degree of flexibility built into
it.
31
Table 2: Staff complement and cost

Position Grade Salary No Cost (Rand)
Ombud 2,183,364 1 2,183,364
Chief Director 14 1,649,292 1 1,649,292
Director: Complaints Management 13 1,373,160 1 1,373,160
Assistant Director: Complaints 9 514,502 1 514,502
Director: Case Management 13 1,373,160 1 1,373,160
Investigator 10 642,171 1 642,171
Case Management Administrator 7 351,811 1 351,811
Total 7 8,087,460
6. PARLIAMENTARY PROCEDURE
6.1 The State Law Advisers and the Department of Small Business Development
are of the opinion that the Bill should be dealt with in accordance with the
procedure set out in section 75 of the Constitution of the Republic of South
Africa, 1996 (‘‘the Constitution’’), since it contains no provisions to which the
procedure set out in section 74 or 76 of the Constitution applies.
6.2 The Constitution distinguishes between four categories of Bills as follows:

Bills amending the Constitution (section 74); Ordinary Bills not affecting
provinces (section 75); Ordinary Bills affecting provinces (section 76); and
Money Bills (section 77). A Bill must be correctly classified or tagged,
otherwise it would be constitutionally invalid.
6.3 The Bill has been considered against the provisions of the Constitution
relating to the tagging of Bills, and against the functional areas listed in
Schedule 4* to the Constitution.
6.4 The crux of tagging has been explained by the courts, especially the
Constitutional Court in the case of Tongoane and Others v Minister of
Agriculture and Land Affairs and Others 2010 (8) BCLR 741 (CC). The court
in its judgment stated as follows:
‘‘[58] What matters for the purpose of tagging is not the substance or the true
purpose and effect of the Bill, rather, what matters is whether the
provisions of the Bill ‘‘in substantial measure fall within a functional
area listed in schedule 4’’. This statement refers to the test to be
adopted when tagging Bills. This test for classification or tagging is
different from that used by this court to characterise a Bill in order to
determine legislative competence. This ‘‘involves the determination of
the subject matter or the substance of the legislation, its essence, or true
purpose and effect, that is, what the [legislation] is about’’. (footnote
omitted)
[59] . . .
[60] The test for tagging must be informed by its purpose. Tagging is not
concerned with determining the sphere of government that has the
competence to legislate on a matter. Nor is the process concerned with
preventing interference in the legislative competence of another sphere
of government. The process is concerned with the question of how the
Bill should be considered by the provinces and in the NCOP, and how a
Bill must be considered by the provincial legislatures, depends on
whether it affects the provinces. The more it affects the interests,
concerns and capacities of the provinces, the more say the provinces
should have on its content.’’.
* Tongoane at paragraph 59.

32
6.5 In light of what the Constitutional Court stated in the abovementioned case,
the test essentially entails that ‘‘any Bill whose provisions in substantial
measure’’ affect the provinces must be classified to follow the section 76
procedure.
6.6 The Bill seeks to amend the principal Act in order to deal with the matters
detailed under paragraphs 1 and 2, above. In the final analysis, it is our view
that the provisions of the Bill do not fall within any of the functional areas
listed in Schedule 4 to the Constitution. Consequently, we are of the opinion
that this Bill is an ordinary Bill not affecting provinces and that it must be dealt
with in accordance with the procedure set out in section 75 of the Constitution.
7. REFERRAL TO NATIONAL HOUSE OF TRADITIONAL AND KHOI-SAN

LEADERS
The opinion is held that it is not necessary to refer this Bill to the National House
of Traditional and Khoi-San Leaders in terms of section 39(1)(a) of the Traditional
and Khoi-San Leadership Act, 2019 (Act No. 3 of 2019), since the Bill does not
contain any provisions which directly affect customary law or the customs of
traditional or Khoi-San communities or pertain to matters referred to in section
154(2) of the Constitution.
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REPUBLIC OF SOUTH AFRICA

NATIONAL SMALL ENTERPRISE

(MINISTER OF SMALL BUSINESS DEVELOPMENT)

[B 16—2023] ISBN 978-1-4850-0876-7

No. of copies printed .........................................150

[ ] Words in bold type in square brackets indicate omissions from

B E IT ENACTED by the Parliament of the Republic of South Africa, as follows:—

Amendment of section 1 of Act 102 of 1996, as amended by section 1 of Act 26 of

‘‘‘Companies Act’ means the Companies Act, 2008 (Act No. 71 of

Insertion of section 1A in Act 102 of 1996

Insertion of section 4 in Act 102 of 1996

‘‘Report of Advisory Body

Substitution of Chapter 3 of Act 102 of 1996

Small Enterprise Development Finance Agency

Establishment and shareholder of Agency 25

10. The objectives of the Agency are to— 40

(ii) small enterprises to compete successfully domestically and

Shareholder powers and duties

Material or persistent failure to meet objectives and targets

12. (1) If the Agency materially or persistently fails to meet the

Agency’s powers and functions

(xiii) improve the understanding of the public regarding the contri-

Role, functions and duties of Agency Board

15. (1) The funds of the Agency consist of—

17. In addition to any other Board committees permitted in terms of

Standards of director conduct

17A. In addition to the standards of director conduct contemplated in 30

17C. Despite section 90(1) of the Companies Act, the Auditor-General

Insertion of Chapter 3A in Act 102 of 1996 10

Establishment of Office of Small Enterprise Ombud Service

17D. (1) The Office is hereby established as a juristic person. 15

17E. (1) The objective of the Office is to adjudicate and dispose of

Appointment of Ombud and deputy Ombud

17F. (1) The Minister must within 90 days of a vacancy appoint, as

(4) The person contemplated in subsection (3) is appointed for a term of

Powers and functions of Ombud

17G. (1) The Ombud must—

(5) For the purposes of an investigation, the Ombud may—

17I. The following jurisdictional provisions apply to the Ombud in

Jurisdiction for complaints

17J. The Ombud may, on reasonable grounds, determine that it is more

17L. (1) The Ombud may investigate a matter if— 45

Delegation by Ombud, deputy Ombud and director

17P. (1) Expenditure in connection with the administration and

Disestablishment and liquidation of Office

17R. (1) The Office may not be disestablished or liquidated, except by an

Regulations applicable to Ombud

17S. (1) The Minister must make regulations including different

Annual Report of Ombud 10

Promotion of stakeholder education

17W. The Office may—

Promotion of inter-agency co-ordination and collaboration

Unfair trading practices

17Y. (1) The Minister— 10

(ii) indicate where a copy of the draft declaration may be obtained;

Substitution of section 19 of Act 102 of 1996, as amended by section 6 of Act 26 of

‘‘National Review of Small Enterprises 25

19. (1) The Director-General must, on the request of the Minister,

Amendment of section 20 of Act 102 of 1996, as amended by section 6 of Act 29 of