The fragile relationship between Matatiele Local Municipality and the small business sector has come under the spotlight, with concerns that municipal inaction is pushing emerging enterprises to the brink of closure. This became evident during an oversight meeting by the Parliamentary Oversight Committee on Small Business, held at Mazasa Management and Consulting in Matatiele, where officials heard how a lack of municipal support is undermining government-funded projects meant to stimulate local economic growth.
Mazasa Management and Consulting, which received funding from the Department of Small Business Development during the 2023 and 2024 financial years, presented its background and operational challenges to the committee. Director Zolile Mosoeu told Members of Parliament that one of the biggest obstacles facing the organisation is the failure of the municipality to assist with critical needs, particularly access to affordable accommodation.
Mosoeu explained that after realising rental costs were unsustainable, he applied for municipal land to build accommodation for the business. Despite following up, he received no response from the municipality, forcing Mazasa to continue renting until the allocated funds were depleted.
Members of Parliament expressed serious concern, with several concluding that the situation reflects a broader breakdown in relations between the municipality and the small business community. EFF Member of Parliament Babalwa Mathulela questioned why the municipality had failed to support a government-funded project.
“To us, this shows the attitude of the municipality towards small businesses,” Mathulela said. “We are going to see how we can assist in this regard.”
Chairperson of the Portfolio Committee on Small Business, Masifako Dikgale, also criticised the municipality’s lack of intervention. She warned that the situation facing Mazasa could be indicative of what other small businesses are experiencing.
“Mazasa Consulting is doing very good work, but it is concerning that the municipality failed to assist until the rental funds were finished,” Dikgale said. “We have funded about 30 small businesses in Matatiele. If this is how the municipality responds, it means this is the attitude towards all of them, and that is not good.”
In response, Matatiele Local Municipality denied claims of a strained relationship with small businesses. The municipality said small enterprises remain a critical component of its developmental agenda and a key driver of local economic development. It stated that it supports small businesses through established engagement platforms and programmes.
Regarding land allocation, the municipality explained that requests for business plots are processed according to land use management processes, spatial planning frameworks and service availability. All applications for municipal land are evaluated by the Land Disposal Committee in line with approved procedures.
The municipality added that while demand for business land is high, allocations must comply with regulatory requirements and cannot be made outside the prescribed process.
Despite these assurances, the oversight committee’s concerns highlight growing fears that delays and bureaucratic hurdles at local government level are choking small businesses — turning public funding into short-lived relief instead of sustainable economic growth.
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