The Black Business Council (BBC) says not paying Small, Medium and Micro-sized Enterprises (SMME) on time is negatively affecting their cash resource.
The council made these comments in reaction to President Cyril Ramaphosa’s apology over government’s failure to pay business owners on time.
Ramaphosa made the apology at a meeting with the BBC at the Union Buildings on Thursday, and he also assured the council that government is committed to pay within 30 days.
The President of the BBC Sandile Zungu says the failure of government and the private sector to make payments on time is destroying small businesses.
“Remember when you are funding your business, using you cash resources, you expect to turn the cash very quickly. If someone won’t pay within 30 days you begin to borrow in anticipation, and it goes beyond 60-120 days. But that is not a crime committed only by government, there are people in the private sector and multinationals who are very bullish in paying their suppliers in 120 days and it’s a crime.”
“We are going to challenge that because it is destroying a critical part of the business chain which is the SMME’s,” adds Zungu.
