Cutting red tape to enhance growth

Thursday, February 10, 2022

Work is underway to cut red tape in an effort to enhance the business environment and create much-needed jobs in South Africa.

Delivering the State of the Nation Address (SONA) on Thursday night, President Cyril Ramaphosa said there are too many regulations in the country that are unduly complicated, costly and difficult to comply with.

“We are therefore working to improve the business environment for companies of all sizes through a dedicated capacity in the Presidency to reduce red tape. If we are to make progress in cutting unnecessary bureaucratic delays for businesses, we need dedicated capacity with the means to make changes.”

He announced the appointment of Sipho Nkosi as head of a team in the Presidency to cut red tape across government. Nkosi, who has extensive experience in business, is currently the chairperson of the Small Business Institute.

“The red tape team will identify priority reforms for the year ahead, including mechanisms to ensure government departments pay suppliers within the required 30 days.

“The team will also work with other departments and agencies to unblock specific obstacles to investment and business growth. It will support current initiatives to simplify processes relating to property registration, cross-border trade and construction permits,” said the President who delivered the SONA to a joint sitting of the National Assembly and National Council of Provinces.

The President also announced the review of the Business Act, alongside a broader review of legislation that affects SMMEs – to reduce the regulatory burden on informal businesses.

“There are too many regulations in this country that are unduly complicated, costly and difficult to comply with. This prevents companies from growing and creating jobs,” he said. – SAnews.gov.za

 

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