There is a silver lining in South Africa's national budget – at least as far as ICT business are concerned, suggests Pieter Bensch, Executive Vice President for Africa & Middle East at Sage.

Bensch refers specifically to the government's plan to establish a dedicated fund for start-ups.

"We heard more about the R2.1 billion fund (the) departments of small businesses and science and technology and the national treasury are developing to benefit small and medium enterprises during the early start-up phase. It's good news that government is investing in innovative start-ups, but it's important that the funding is spent in an efficient and productive manner. Picking winners and losers isn't easy, so we'd like to hear more details about how government will choose to allocate this money."

Bensch is pleased South Africa's Finance Minister Malusi Gigaba expressed concern over the prospects of start-ups that could be funded, as well as existing small and medium enterprises as he presented the consolidated budget of R1.67 trillion.

"It was great to see the Finance Minister talk extensively about the hopes and concerns of entrepreneurs and small businesses in his budget speech. We welcome his acknowledgement that low market access and high barriers to entry are constraining the growth of the country's small businesses. Minister Gigaba mentioned that government will take action against anti-competitive behaviour that harms these businesses."

Bensch adds that while the goal to improve competition policy and increase market access is worthwhile, he thinks there should also be a closer look at how big businesses can play a constructive role in nurturing the growth of small businesses through mentoring and partnership.

In a tweet, Michael Jordaan, co-founder and chairman of South Africa's newly founded digital-only bank Bank Zero, expressed his delight over being referenced by the Minister.

"(I'm) delighted that Bank Zero is mentioned in the Budget Speech and that our high, direct Black ownership already sets us apart from the other banking start-ups," said Jordaan.

Gigaba added, "New technology offers substantial opportunities for new entrants into the financial sector. In 2017, the Reserve Bank granted three bank licences - two for banks with significant digital banking capabilities and one for a new digitally focused mutual bank. These licences will ensure banks are able to harness the power of technology and bring competition and innovation into the sector."

Gigaba also announced a total of 39 000 bursaries, that will be distributed through the country's Student Financial Aid Scheme, at a cost of R 3.7 billion for prospective teachers in priority subject areas that include science and technology over the next three years.