ApsoluLab Issue
7 April 2026.
Quote of the day
“Accepting the informal economy as part of the solution to the problem of unemployment would enable us to take a giant step towards a more inclusive discussion about the form and function that informal microenterprises should constitute.”
GG Alcock in KasiNomic Revolution making a point about the need to extend support to South Africa’s informal economy.
Major tax relief for SMEs
The South African Revenue Service (SARS) announced that from 1 April 2026 several key tax relief measures will be implemented to offer a significant upliftment to Small and Medium Enterprises (SMEs). In the main, the relief measures are designed to reduce compliance costs, improve cash flow, and promote growth.
This relief is aimed at creating a conducive environment for SMEs to continue contributing to economic growth and job creation. The Budget tax guide 2026 that was published on 25 February 2026 provided the details on the tax incentives that were particularly designed for small businesses.
Perhaps the change that has received everybody’s attention is the increase of the Turnover Tax threshold. The threshold is not set at R2.3 million, up from the previous R1 million. The tax-free portion has also been increased to R600,000. At the same time, the compulsory VAT registration threshold has also been increased, moving from R1 million to R2.3 million. This is a welcome development that will give small business some administrative reprieve.
Small Business Corporations (SBCs) were also handed a small but positive boost. The tax-free threshold on taxable income has been raised to R99 000, with the familiar progressive rates continuing up to 27% above R550 000. Moreover, individuals aged 55 and older selling a qualifying small business can now enjoy a capital gains tax exclusion of R2.7 million (previously R1.8 million), provided the business’s market value is not over R15 million (up from R10 million).
It is worthy to note that these interventions align thresholds across Turnover Tax, VAT, and CGT relief, which brings about a coherent support framework for SMMEs.
These reforms deliver real breathing space for South Africa’s small businesses as lower compliance means more money stays in the business for reinvestment, hiring, and expansion.
Big ups to SARS for showing that it is listening to the cries of SMEs amid rising costs and tough economic conditions. This move gives a lifeline that recognises the critical role that SMMEs play in driving economic growth.
Cell C’s Business Connectivity Strategy for SMEs
South Africa’s small business economy could do with reliable, affordable, and flexible connectivity. Cell C has been repositioning itself as a connectivity partner for small businesses, undertaking to deliver agility, cost‑effectiveness, and simplified solutions to enable success.
Pillars of the Strategy
- Focus on affordability
The Competitive pricing on data packages, voice bundles, and fixed LTE solutions is a welcome relief for small businesses operating on thin margins. - Flexible connectivity options
The change toward network sharing agreements has allowed Cell C to offer broader coverage without the heavy infrastructure burden. This is great for SMEs as it means faster deployment, lower setup costs, and more flexible contract terms. - Growing focus on digital tools
Cell C’s thrust into digital services that have a strong focus on business like cloud storage, cybersecurity add-ons, and productivity tools indicates an understanding that small businesses need integrated digital ecosystems.
Benefit for South African SMEs
Connectivity is the mainstay of modern business. It goes without saying that when SMEs have access to reliable, affordable digital infrastructure, they can compete more effectively, access new markets, improve operational efficiency, adopt digital payment systems, and participate in the broader digital economy.
Regardless of its imperfections, Cell C’s strategy is driving the industry in the right direction. It challenges incumbents, expands choice, and keeps prices competitive. This competition is healthy for a country where small businesses are at the epicentre of job creation.
Takeaway
Cell C’s business connectivity strategy is promising, disruptive, and aligned with the felt needs of SMEs that are conscious about their operating expenses. It introduces welcome competition to the market and brings down barriers for entrepreneurs entering the digital economy.
This presents an awesome moment for partnerships to execute connectivity solutions that empower small businesses to succeed, innovate, and create strong business operations.
Entrepreneurship as driver of a sustainable future
Entrepreneurship is correctly recognised as a catalyst for economic resilience. It creates jobs, stimulates local economies, and introduces new solutions to long standing challenges. The quality of the jobs is an issue that needs closer scrutiny.
South Africa’s small business sector is already considered the backbone of the economy, with township and rural entrepreneurship alone estimated to worth millions if not billions in economic value. The jury is still out on whether townships and rural areas are seeing the benefits of this economic value given the unspeakable underdevelopment that we continue to witness in some of these areas.
Both the public and private sectors have invested handsomely to create an entrepreneurial environment that stimulates innovation, job opportunities, and sustained economic growth. At the core of this investment is the intention to make certain that entrepreneurs have access to the tools, resources, and backing needed to create thriving enterprises.
A new wave of digital and youth entrepreneurship
The role of digital skills becoming central to South Africa’s entrepreneurial landscape is commendable. It is encouraging that schools and universities are integrating coding, robotics, and digital tools into learning, helping young people build confidence in technology-driven problem solving. This development is reshaping how future entrepreneurs think, create, and innovate.
Various Artificial Intelligence-focused initiatives are equipping entrepreneurs with practical AI skills, which helps them to automate tasks, boost productivity, and be more competitive.
This signals a future where entrepreneurship is deeply intertwined with digital capability.
Entrepreneurship revitalising small towns and local economies
Small towns across South Africa are experiencing pockets of quiet revival powered by different industries and local entrepreneurship. New artisanal businesses and community-driven ventures are transforming the once quiet towns into vibrant economic hubs. These businesses create jobs, support local suppliers, and strengthen social cohesion.
This trend shows how entrepreneurship can decentralise economic opportunity, which brings growth beyond major metros.
Considering the high levels of unemployment in small towns, more investment needs to be made to bring about sustainable development through entrepreneurship.
Final thoughts
Entrepreneurship is transformative. It drives innovation, unlocks youth potential, revitalises communities, and builds a more inclusive and resilient economy. With the right support systems, training, and financial tools, South Africa’s entrepreneurs can shape a future defined by opportunity and shared prosperity. Listening to folks who are against the transformative nature of government support to entrepreneurs boggles the mind.
Are clothing, textiles, footwear and leather businesses commercially viable?
To date, South Africa imports billions of rands worth of apparel and footwear annually. In 2024, this figure was estimated to be around $3.4 billion. This is puzzling considering that we have a rich history of leather craftsmanship, local (township and rural) artisans with brilliant skills, an expanding international demand for ethical, sustainable, traceable fashion, and government incentives for localisation and manufacturing.
For commercial viability, focus on a clothing, textiles, footwear and leather (CTFL) business that combines local craftsmanship, ethical sourcing, and digital-first distribution as this can grow to be a sustainable and competitive enterprise.
The concept will find favour in the market because consumers want originality, ethical sourcing is now a competitive edge, local production decreases dependency on imports, and digital commerce allows national and global reach.
How to build your own CTFL venture
- Start with a hero product
Choose one item that defines your brand in the form of a leather bag, a minimalist sneaker, a unisex backpack, or a signature jacket. - Source ethically and locally
South Africa is blessed with skilled leather artisans in various townships, wool and mohair industries in the Eastern Cape, and textile clusters in Kwa-Zulu Natal and the Western Cape. - Build a transparent brand story
Consumers are always keen to know who made the product, where materials come from, and how workers are treated. Make it a point that this information is contained inside the bag in a small leather tag. - Adopt a circular approach
Your model could work better if you focus your efforts on upcycling leather from the food industry, repair programmes, and buy-back or resale initiatives. - Sell direct to consumer
To ensure that you keep your margins high and obtain immediate feedback, it is imperative that you use social media platforms for storytelling, sales, as well as pop-up markets for testing and cultivating community partnerships. - Scale through partnerships
Core to your success are strategic partnerships that will facilitate access to finance, build supply collaborations, as well as linking up with development agencies and SETAs for training and incentives.
The Eastern Cape Development Corporation is delivering for SMEs
The 2024/25 Annual Report of the Eastern Cape Development Corporation (ECDC) details that the institution made a positive impact on the provision of support to Micro, Small, and Medium Enterprises (MSMEs). The report highlights that R80 million in loans was disbursed to 76 enterprises, resulting in 625 jobs retained through the Jobs Protection and Stimulation Fund. To demonstrate its support for community-based enterprises, an amount of R17,58 million was disbursed to 57 cooperatives.
The Annual Report further reflects that 273 businesses were provided with direct business support. As a result of the credible work that the institution is doing, an amount of R124,2 million value of funds was leveraged directly for MSME projects. Finally, 309 jobs were created through the enterprise finance (loans) instrument.
These figures demonstrate that the ECDC has evolved to be one of the critical catalysts for MSME growth in the province as its recent programmes show a level of innovation, accessibility, and strategic clarity that deserves recognition. The organisation’s shift toward digital access, blended finance, and rural township enterprise support demonstrates a maturing development organisation that understands both the structural barriers MSMEs face and the practical solutions required to address them.
A development institution reimagined for MSMEs
According to the ECDC, it’s renewed strategy positions it as a driver of a diversified, inclusive, and competitive Eastern Cape economy.
The strategy outlines three factors that drive MSME development:
- A commitment to small towns, rural areas, and township economies
- A change to new financing instruments that align with MSME realities
- A focus on networks and new approach of working, not just funding
A funding suite that aligns with MSMEs needs
An exploration of ECDC’s financial support instruments reflect a profound comprehension of the different stages and realities of MSME growth. The institution’s major programmes include:
- Bridging Loans: short term working capital for contract execution (1–6 months).
- Risk Capital Fund: a pilot programme supporting innovative business ideas that can drive competitiveness and job creation.
- Job Stimulus Fund: non repayable incentives for distressed businesses to save or create jobs (5–250 jobs).
- Small Towns, Rural and Township Entrepreneurship Programme: infrastructure upgrades and essential equipment support (up to R150k).
- Imvaba Cooperative Fund: non repayable incentives for cooperatives in agriculture, manufacturing, branding, IT, and more.
Lastly
If the ECDC stays on this trajectory, it will be well on course to build generational impact.
Trending
South African businesses are currently rallying around a major R900 billion investment push expected to generate about 230,000 jobs, even as they contend with increasing fuel costs and mounting inflationary pressures. This was announced by President Ramaphosa during the 6th South Africa Investment Conference, held on 31 March 2026.
Quick Picks
Small businesses are feeling the pinch of the increasing fuel costs.
Expos remain a key channel for small businesses to showcase their products and services.
Fourways community market grants access to small businesses.
Woolworths makes tuck shop move at private schools.
SMEs weather the storm but adapt for expansion opportunities.
On Our Calendar
International Conference on Small Business Entrepreneurship (ICSBE)
18 April 2026
Cape Town, South Africa
A focused academic and professional gathering on small business entrepreneurship, ideal for SME owners, researchers, and policymakers interested in growth strategies, innovation, and case studies.
National Small Business Chamber (NSBC) Webinar Wednesday: Letters of Demand + Acknowledgement of Debt
Date: 22 April 2026
Format: Virtual (online)
Time: 9:30 AM
A practical, free or low-cost webinar aimed at small business owners on legal and financial topics (contracts, debt recovery). Part of NSBC’s regular “Webinar Wednesday” series supporting SME growth.
SMME Summit 2026 (KwaZulu-Natal)
Date: 25 April 2026
Location: Lynwood Club, Pietermaritzburg (PMB), KwaZulu-Natal
A full-day event (09:00–16:30) for SMMEs and entrepreneurs, focusing on business growth strategies, networking, and empowerment. Described as a “movement” for township and small business owners.
IAAE Summit – Kimberley (part of a national series for artisans and SMMEs)
Date: 24 April 2026
Location: Kimberley (Northern Cape)
Free entry for entrepreneurs and SMMEs. Focuses on practical growth tools, market access, skills development, and business support. Part of a rolling series across provinces.