Has GNU been a curse or a blessing to SMEs in South Africa?

Embargo: none
June 29 2026

In June 2024, an agreement was reached by nine parties to share power. This arrangement, known commonly as the Government of National Unity (GNU), came after the failure of parties to win outright majority in the 2024 general elections.

This month marks the second anniversary of the GNU.

In its commemoration, the Small Business Institute commissioned a think-piece from Mr Septi Bukula, an expert on matters affecting small, micro and medium-sized enterprises in South Africa and the rest of the continent. He has worked extensively in the SMME ecosystem advising governments and international agencies.

We asked Mr Bukula to assess the work, interventions and support measures undertaken by the GNU to create an environment where SMMEs can start, run and grow. We are pleased to table the outcome of this exercise.

The major conclusion of the piece, titled “Has the GNU delivered for SMEs?” is:

“The GNU has passed its first test: stabilisation.  The second test — delivery — remains unresolved. Whether the GNU can convert policy intent into lived economic improvement for South Africa’s SMEs is the defining question of its remaining mandate.”

This is part of our ongoing advocacy work towards an environment that enables the prosperity of small businesses in South Africa and the achievement of the aspiration enshrined in the National Development Plan.  “Our hope is that this contributes to evidence-based debate on what more is needed to unleash the full potential of SMEs. We hope the discourse extends beyond the state actors and includes other role players such as the private sector, development finance institutions and commercial banks,”
says John Dludlu, the CEO of the SBI.

The rest of the piece is available on our website here

Notes to Editors:

• SBI research is available on an open-source basis.

Issued by SBI.  For more information 012 348 5440