SME services provider Lula has welcomed the Finance Minister's firm commitment (today) to fiscal discipline and decisive progress on structural reforms, stating that these efforts directly address the cost and risk of doing business for small enterprises.

Lula had previously insisted that the MTBPS’s single mission must be to slash the cost and risk of doing business by delivering a clear trajectory for electricity supply, logistics costs, and the national debt path.

“Minister Godongwana has delivered a strong signal of intent on fiscal management and infrastructure, the two pillars of SME operating risk,” said Garth Rossiter, Lula’s Chief Risk Officer.

“The commitment to stabilise public debt at 77.9% of GDP in 2025/26 and achieve a R68.5 billion primary budget surplus provides some necessary macroeconomic certainty that underpins confidence for long-term SME investment and hiring”.

Lula also praised the measurable, time-bound progress in infrastructure:

·Logistics: Confirmation that reforms are gaining speed, with the first rail corridor Request for Proposal (RFP) due by December 2025, and port vessel waiting times down by 75%.

·Energy: The allocation of R2 billion to a Credit Guarantee Vehicle for electricity transmission expansion directly tackles one of the greatest threats to SME growth.

Despite the positive developments, Lula maintains a degree of caution.

“The greatest challenge for our SMEs is not resilience but capital commitment in the face of tax uncertainty,” Rossiter added.

“While the Minister has given hope that the potential R20 billion tax increase for 2026 may be withdrawn, he did not provide a definitive commitment, deferring the final decision to the February Budget. Furthermore, there was no announcement of new, specific targeted tax relief for the small business sector, a vital component for driving growth and job creation.”

Lula calls on the government to ensure the announced structural reform timelines are met to create tangible improvements on the ground for SMEs.