The Portfolio Committee on Small Business Development has urged the Department of Small Business Development (DSBD) and the Board of the Small Enterprise Development Finance Agency (SEDFA) to prioritise the swift and permanent appointment of a chief executive officer for the agency. The committee emphasised that this leadership gap, which has been in place for over a year, is having a negative impact on SEDFA’s ability to fully execute its mandate.
SEDFA, established in 2024 following the Presidential assent to the National Small Enterprise Act 21 of 2024, began its operations in October of the same year. The agency’s responsibilities, as outlined in Chapter 3 of the Act, are integral to the empowerment of small businesses in South Africa, with specific focus on providing financial and non-financial support to emerging enterprises.
During a briefing on Wednesday, 29 October, the committee received a comprehensive report from both the DSBD and SEDFA on their performance for the first quarter of the 2025/26 financial year. The committee members expressed significant concern over the continued absence of a permanent CEO at SEDFA, a position that has been filled on an acting basis for more than a year. This vacancy, the committee noted, is hindering the agency’s ability to deliver optimal services to small businesses.
In her remarks, committee Chairperson Ms Masefako Dikgale stressed that the committee could no longer tolerate the delay in filling critical leadership positions. “It is essential that the CEO position at SEDFA be filled on a permanent basis. This will benefit the committee, the agency, and, most importantly, the small businesses that rely on its services,” Ms Dikgale said.
She further warned that the committee would continue to hold the department and SEDFA accountable for the delay in appointing a permanent CEO. The Chairperson’s remarks reflect the committee’s commitment to ensuring that SEDFA is properly staffed to fulfil its objectives and better serve small businesses.
In response to the concerns raised, the SEDFA Board assured the committee that the recruitment process for a permanent CEO is underway and would be completed by the end of November 2025. Following the recruitment process, the department will facilitate the necessary Cabinet approval to finalise the appointment.
Despite the leadership challenges, both the DSBD and SEDFA presented positive performance results for the first quarter of the 2025/26 financial year. The DSBD reported a commendable performance score of 90%, while SEDFA’s performance was recorded at 52%. While the committee acknowledged the DSBD’s strong performance, they reiterated the need for a permanent CEO at SEDFA to ensure the agency’s continued effectiveness and to meet the needs of small businesses across the country.
The committee remains committed to supporting the growth and sustainability of small businesses in South Africa. As the recruitment process for the permanent CEO at SEDFA continues, the committee will closely monitor progress and engage with relevant stakeholders to ensure that the leadership gap is addressed in a timely manner.
Justice Molafo
30 October 2025
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