Insights from the SBI SME Indaba 2025 and Economist Isaah Mhlanga’s call to action
On 20 May 2025, (SA)UEO’s General Secretary Elise Coetser and Assistant General Secretary André Fourie attended the Small Business Institute’s SME Indaba — a national platform bringing together key thinkers, leaders, and changemakers committed to unlocking the potential of South Africa’s SMME sector.
One voice stood out: Isaah Mhlanga, Chief Economist at RMB.
His message? We’re not in a cycle. We’re in a crisis. And unless we confront the systemic issues throttling participation, especially for small and emerging employers, we’re heading into turbulent territory.
This article highlights the key takeaways Elise and André brought back from the event — insights that echo (SA)UEO’s long-standing call for structural reform and resilience-building among our members.
What’s really going on in our economy?
Mhlanga argued that South Africa has moved past ordinary economic weakness and into long-term stagnation. Our infrastructure is crumbling, policy direction is uncertain, and the cost of doing business — especially for small employers — is increasingly unbearable.
“The same laws meant to protect workers are now locking millions out of the labour market,” he said.
At the heart of the crisis is the disconnect between economic policy and economic reality. Young people can’t find jobs. Small businesses can’t afford to hire. And the informal sector is growing — because for many, it’s the only option.
What lies ahead?
Mhlanga made four stark forecasts:
- Growth will limp along at 1–1.5% without structural reform
- Youth unemployment will continue to rise unless SMMEs can scale
- Informality will expand — whether government supports it or not
- Social unrest is likely if economic exclusion persists
“If people are locked out of the economy, they will find their way in — through protest, unrest, or informal means.”
What must change?
Mhlanga’s call to action is urgent — and aligned with our own:
- Invest in infrastructure and basic services, especially in under-resourced areas
- Make it easier to employ — particularly for SMEs and domestic employers
- Bridge the gap between formal and informal sectors
- Reform the education and skills pipeline to match real-world needs
Why this matters to our members
This is more than economic analysis. It’s a wake-up call — and a resounding endorsement of the work (SA)UEO has been doing on your behalf.
We’ve long recognised that economic inclusion cannot be achieved through blanket policies designed for big business alone. That’s why our organisation has been actively:
- Driving realistic compliance pathways for smaller employers
Through sustained advocacy, (SA)UEO continues to push for regulatory models that recognise the operating realities of SMEs, domestic employers, and micro-enterprises — ensuring compliance is achievable, not crippling. - Championing informal and domestic employment as critical to economic growth
We don’t view informality as a threat — we see it as untapped potential. Our work includes initiatives to legitimise, protect, and uplift informal workers and employers, especially in sectors like domestic work, community care, and township enterprise. - Calling for labour reform that enables growth and fairness
We’ve consistently argued that South Africa’s rigid labour framework locks out those it aims to protect. We support labour reforms that remain rooted in dignity and rights — but with practical provisions that allow smaller employers to hire, grow, and thrive. - Investing in township economy development and support for micro-enterprises
From group negotiations and bulk buying support to advisory services, training, and toolkits — our initiatives are designed to give township-based employers and small businesses the means to participate meaningfully in the economy.
We’re not on the sidelines. We’re building systems, influencing policy, and empowering employers — not just to survive, but to lead South Africa’s next phase of inclusive economic growth.
Final word
“We’ve run out of time for polite delays. If we want peace, we must create participation.”
Let’s rise to that call — together. Because when small employers thrive, South Africa stands a chance.