Banker S.A. June 2013 | Page 27

SMEs and national development: the role of banking The National Development Plan (NDP) gives an important role to banking in the development of SMEs. How are banks contributing to this vital sector? S outh African banks have faced a stream of criticism for apparently not doing enough to extend financial services support to Small and Medium Enterprises (SMEs). ‘It is of concern that South Africa’s banks do not extend sufficient credit to businesses, especially smaller firms,’ Chapter Three of the NDP policy document starkly puts it. Discussions in public forums around the financing of SMEs have risen following the crafting of the NDP and the strong focus on it in President Zuma’s State of th