Tuesday 3 November 2026 · Updated 20:25
EXPLAINERNation Watch Explains

Small Enterprise Ombud explained: what Vaal businesses with unpaid invoices need to know

The law most people call the Small Business Act promises an Ombud to settle small business disputes over contract terms and late or non-payment. As at 3 November 2026, it is not yet working. Here is what it could do, where it stands and what to do with unpaid invoices in the meantime.

By Staff Reporter · Published

As at 3 November 2026.

Why it matters
  • The Ombud is still on paper. When it is up and running, it should give small businesses a cheaper way than going to court to settle disputes over contract terms and late or non-payment. As at 3 November 2026, we found no announcement that an Ombud had been appointed.1,2,3
  • The cut-off date for older disputes is not yet clear. Older invoices may fall outside the Ombud’s reach.4
  • Records matter now. Keep full records of all unpaid invoices and follow-ups, old and new.4

The Small Enterprise Ombud: promised, not yet working

The 2024 amending Act (Act 21 of 2024) to the National Small Enterprise Act creates the Office of the Small Enterprise Ombud Service.4 On paper, the Ombud is the part of the law that matters most to a Vaal supplier waiting on an unpaid invoice.

What the Act says the Ombud can do:4

  • hear complaints from small businesses, including disputes over the interpretation of the terms of an agreement and late or non-payment. The minister has described the Ombud as covering “late payment and unfair contractual practices”1
  • settle disputes, or make a final ruling and order compensation with interest. The minister may cap awards by regulation, and interest may not exceed what a court could award (section 17M)
  • have its rulings treated as a civil court judgment. For money awards, the court clerk or registrar can issue a writ that the sheriff can carry out two weeks after the ruling (section 17M)
  • turn away older disputes. Section 17I(a) says the Ombud “must decline to investigate any complaint which relates to an act or omission which occurred on or before the date of commencement of this Act”. The Act does not say which commencement date that is: the 2024 amending Act partly took effect on 1 October 2024, but the Ombud chapter has not commenced. So the cut-off date for older disputes is not yet clear4,5
  • stop the clock on prescription once it officially receives your complaint (section 17H(2))

Under section 17Y, the Act also gives small businesses the right to:

  • a clear business contract
  • a reasonable payment date, and interest on late payments
  • disclosure of relevant information
  • accountability from large businesses and government

Unfair trading practices

The minister may also declare certain practices to be banned unfair trading practices, on the Ombud’s recommendation and after consulting the trade minister. This power is also in the chapter that has not yet commenced.4

Where it stands

  • On 9 June 2026, the National Assembly adopted a committee report recommending four candidates for Ombud: Adv Lufuno Tokyo Nevondwe, Adv Sonwabile Mancotywa, Adv Lehlohonolo Lucky Rabotapi and Adv Mheshe Nande. The report was to go to Minister Stella Ndabeni, who must appoint the Ombud under section 17F.2,6
  • On 14 October 2026, members of the portfolio committee were still asking the ministry to clarify the status of the appointment. The committee’s budget review report recommends appointing the Ombud.3
  • In a written reply published on 26 October 2026, the minister said the department “is establishing” the Ombud Service.1
  • We found no announcement of an appointment. Nation Watch SA has asked the Department of Small Business Development whether the Ombud has been appointed and will update this story once it responds.
  • In an April 2026 reply, the minister said a Project Management Team had been appointed “to facilitate the establishment of the Office; and receive, assess and make recommendations regarding complaints received, including non-payment of invoices”.7 We could not confirm whether that team is still taking complaints, or how to reach it. Nation Watch SA has asked the Department of Small Business Development about the interim complaints team and will update this story once it responds.

The section 5 question

One legal question for the department. The Ombud chapter (section 5 of the 2024 Act) has not commenced. Only two commencement proclamations exist, Proclamation 190 of 2024 and Proclamation 314 of 2026, and section 5 is in neither.8,5 Yet Parliament describes the office as established under section 17D, and it has run the appointment process.2 The minister must also make regulations setting out how complaints work (section 17S).4 We found none. Nation Watch SA has asked the Department of Small Business Development when section 5 will be brought into force and when the section 17S regulations will be published, and will update this story once it responds.

What We Know / What We Don’t

What we know

  • Parliament recommended four candidates for Ombud to the minister in June 2026.2,6

What we don’t know

  • When the minister will appoint the Ombud. As at 3 November 2026 we found no announcement.3,1
  • When the Ombud chapter (section 5) will be brought into force, and when complaint regulations will be published.
  • Whether the interim complaints team is still taking complaints.
What it means for a Vaal SMME with unpaid invoices
  • Unpaid invoices: until the Ombud is working, your options are the ones you have always had: negotiation, mediation where available, or court. Keep proof of every invoice and every follow-up. Section 17I(a) says the Ombud must decline complaints about anything that happened “on or before the date of commencement of this Act”, and that cut-off date is not yet clear. Older invoices may therefore fall outside the Ombud’s reach.4
  • Government work: the department says it tracks whether national and provincial departments pay valid supplier invoices within 30 days. It also says it follows up when small businesses report they have not been paid.1

What to do next

  1. Track the Ombud. We will report when an appointment is announced. Keep full records of all unpaid invoices and follow-ups, old and new, because the cut-off date for complaints is not yet clear.4

Read more

Sources
  1. Written reply NW5563, Minister of Small Business Development, Parliamentary Monitoring Group (26 Oct 2026)
  2. Committee Chairperson welcomes NA’s adoption of committee report recommending candidates for Small Enterprise Ombud appointment, Parliament of South Africa (9 June 2026)
  3. Portfolio Committee on Small Business Development: BRRR meeting, Parliamentary Monitoring Group (14 Oct 2026)
  4. National Small Enterprise Amendment Act 21 of 2024 (full text), Government Gazette 50965, gov.za
  5. National Small Enterprise Amendment Act 21 of 2024 (commencement history, including Proclamation 190 of 2024 and Proclamation 314 of 2026), LawLibrary
  6. National Assembly approves reports on … appointment of Small Enterprise Ombud, Parliament of South Africa (10 June 2026)
  7. Written reply NW1089, Parliamentary Monitoring Group (23 April 2026)
  8. Section 8 of National Small Enterprise Amendment Act in effect, GoLegal / Sabinet (29 May 2026)

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