President Cyril Ramaphosa has called for sweeping reforms to cut red tape and support small businesses, warning that bureaucratic delays at municipal level are driving away investment and limiting opportunities for township entrepreneurs.
Speaking at the 2026 National Local Economic Development (LED) Summit at the Birchwood Conference Centre, President Ramaphosa said improving the ease of doing business must be a top priority for local government.
“Cutting red tape is crucial both to attract large scale investments and also to enable informal traders and small township entrepreneurs to succeed,” he said on Wednesday.
While acknowledging progress in some municipalities, he expressed concern that these remain isolated successes.
“Some of our cities and municipalities have done well in improving the ease of doing business. They have systems and targets for zoning approvals, issuing construction permits, connecting businesses with water and electricity, issuing trading and business licences, including using e-registration systems. There is regulatory certainty. However, I worry that these municipalities are the exception rather than the rule,” the President said.
He pointed to administrative inefficiencies that continue to block economic activity.
“More often than not, bureaucratic delays at municipal level prevent local investments from getting over the line,” he said.
Among the key challenges are delays in issuing business licences, which prevent small enterprises from accessing support.
“There are backlogs in issuing business licences, which, among other things, prevent micro enterprises from accessing government support. This must change,” he emphasised.
President Ramaphosa said government is working to address these issues through policy reforms, including the Business Licensing Bill and the Red Tape Reduction Framework, but stressed that municipalities must act decisively.
“We call on local government to drive its own red tape reduction reforms,” he said.
He further urged stronger collaboration between municipalities and the private sector to unlock local economic potential.
“We would also like to see continuous engagement with local business associations and forums, so that we may understand their frustrations and address their concerns,” he said.
The President emphasised that investment decisions are heavily influenced by how business-friendly municipalities are.
“Investment will always gravitate towards municipalities that make it easy to do business,” the President said.
He also called on established businesses to partner with municipalities, develop local suppliers, invest in skills and open value chains.
“We must leave this summit with a programme of action that binds us to clear deliverables and timelines.
“We must ensure that the collaborative blueprint we draft here over the next two days contributes to a new reality for every South African, for every business, in every municipality, in every corner of our land,” he said.
He concluded by reaffirming the country’s entrepreneurial potential and the need to create an enabling environment for it to thrive.
“South Africa is a country of entrepreneurs. Our task is to unleash their potential and, in so doing, to build an inclusive economy that creates opportunities for all,” the President said. – SAnews.gov.za
