External mid-term review of the Technical Assistance Programme for Small and Medium Enterprises in South Africa

• Research unit: SECO
• Project number: 2025-WEIF140/SECO-063.514

Short description (English)

The evaluation finds that the TA Programme is highly relevant to the South African SME landscape, effectively addressing critical capacity and financing gaps through zero-interest loans and technical assistance. It demonstrates strong coherence with national policy frameworks, though assumptions about the target SMEs’ business growth proved optimistic given rapid market changes. In terms of efficiency, the programme reached 232 approved loans, but disbursement lagged behind expectations and implementation slowed notably during COVID-19, leading to a two-year extension. Effectiveness and impact are evident in strong early turnover growth among supported SMEs and improvements in business skills and financial management, though attribution is limited because TA is embedded in a larger financing programme. The evaluation highlights that women-owned businesses and township enterprises benefited meaningfully, even though they received smaller loan sizes. Overall, the findings show that the programme delivers valuable support to SMEs but requires refinements in targeting, operational speed, and alignment with the evolving SME environment.

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