In a compelling critique, Muzi Mhlambi argues that South Africa’s SME financing issue isn’t about a shortfall of capital, but about inequitable access and poor targeting. While the DTIC’s proposed R100 billion fund aims to boost black entrepreneurship, systemic barriers are preventing the flow of investment to the MSMEs that need it most.
By Muzi Mhlambi – Business Live
Not a Lack of Money, but Misdirected Resources
The South African MSME Access to Finance 2025 report makes it clear: “There is no shortage of funding… The supply and demand mismatch for MSME funding is not owing to a lack of money, but where it is targeted”.
Fix: Remove Access Barriers—Don’t Build New Funds
Mhlambi urges policymakers to prioritize:
- Streamlining regulation to reduce bureaucratic friction
- Ensuring the existing funding environment rewards best practices, sustainability, and scalability
- Improving traceability and transparency, so capital reaches deserving businesses, not just institutional gatekeepers.
Supporting Entrepreneurs Who Deliver
Rather than allocating more resources through complex new structures, the goal should be to unlock what already exists: support MSMEs with streamlined compliance, enhanced visibility, and measurable performance-based incentives.
