Minister Stella Ndabeni welcomes National Treasury budget announcement

The Minister of Small Business Development, Ms Stella Tembisa Ndabeni, welcomes the 2026/2027 Budget Speech delivered today by the Minister of Finance, Mr Enoch Godongwana. The Minister commends the tangible and responsive measures announced to support the growth and sustainability of small businesses in South Africa.

This budget demonstrates that government is listening to the entrepreneurs who are the backbone of our economy. The Minister of Finance has announced key adjustments that directly address the challenges faced by Micro, Small, and Medium Enterprises (MSMEs).

Firstly, the significant increase in the compulsory VAT registration threshold from R1 million to R2.3 million is a major victory for small businesses across the country. By raising this threshold, we are ensuring that businesses can grow without being prematurely burdened by complex administrative requirements. This bold step in addressing red-tape allows entrepreneurs to focus on what matters most: stabilising their operations, creating jobs, and contributing to economic growth. It affirms our understanding that incentivising MSMEs is essential to building an inclusive economy.

Furthermore, the budget includes critical measures to support older South Africans who have dedicated their lives to building enterprises. The increase in the capital gains tax exemption for the sale of a small business from R1.8 million to R2.7 million is a welcome step. By also expanding the eligibility threshold for this exemption to businesses worth up to R15 million (increased from R10 million), we are enabling more founders to retire with dignity and unlock capital that can be reinvested into the economy.

These adjustments are more than just numbers; they are a direct investment in the confidence of our small business sector. As the Department of Small Business Development, we are committed to complementing these fiscal measures with our own non-financial support. This includes improving access to markets, enhancing business development support, and strengthening the overall capacity of our entrepreneurs to ease the means of doing business.

We thank Minister Godongwana and the National Treasury for ensuring that the needs of MSMEs remain central to our national economic strategy.

The Minister encourages all small business owners to familiarise themselves with these new thresholds and to continue engaging with us as we work together to build a thriving and inclusive economy.

Enquiries:
Mr Luyanda Mbalana 
Communications Officer
E-Mail: LMbalana@dsbd.gov.za
Cell: 063 313 2728

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