Government urges timely payments to MSMEs
By Delisa Magagula
The Ministry of Commerce, Industry and Trade has called on Government ministries, parastatals and the private sector to prioritise timely payments to Micro, Small and Medium Enterprises (MSMEs), warning that persistent delays are undermining businesses and threatening the country’s economic stability.
The appeal follows the launch of the National MSME Policy 2024–2029, which identifies delayed payments as one of the biggest challenges facing small enterprises.
Minister Manqoba Khumalo said the Ministry had been inundated with concerns from entrepreneurs who supply goods and services to institutions but struggle for months to receive payment.
“These delays cause real harm. MSMEs operate largely on loans, and when they are not paid, they default, lose employees, or even close down completely,” Khumalo said.
According to the Ministry, most MSMEs rely on bank credit or microfinance to finance their operations. Any cashflow disruption such as late invoices quickly cascades into repossession of assets, bankruptcies, and rising unemployment.
Beyond inefficiency, the Minister also raised alarm over corrupt practices within certain departments. He noted reports of officials demanding bribes to process invoices.
“Such tendencies are criminal, and MSMEs are urged to report these unlawful acts. We must clean up the system so legitimate businesses can survive and thrive,” he stated.
The government has promised to address late payments at the department level, while also appealing to parastatals and private companies to play their part.
The Ministry insists that prioritising payments is not only a financial obligation but also a moral and developmental duty.
“MSMEs are the heartbeat of our economy. By paying them on time, we empower entrepreneurs to innovate, employ more people and contribute meaningfully to national development,” Khumalo added.
