Govt moves to reduce municipal red tape for SMMEs
Government was expected to launch to guidelines next month aimed at reducing municipal red tape for small, medium-sized and micro enterprises (SMMEs) and enhancing business environments.
The departments of Trade and Industry (DTI) and Cooperative Governance and Traditional Affairs (CoGTA), with the support of the South African Local Government Association (Salga), would reveal the guidelines on July 3.
Despite developed policies, laws and regulations encouraging open markets, innovation and a more competitive economy, Trade and Industry Minister Dr Rob Davies noted that some of the local business environments could discourage investors, as well as inhibit innovation, growth and potential job creation.
“This is exacerbated by the unfavourable regulatory environment, high costs and risks of doing business in these localities,” he added.
A study of 12 municipalities nationwide, undertaken by the two departments, showed that red tape issues at local government level affected the operation of SMMEs.
The practical implementation framework would target the reduction of local government, or municipal, red tape and enhance the relevant municipal officials’ capacity to improve the local business environment.
Following the launch, the DTI, CoGTA and Salga would embark on a nationwide roll-out of the guidelines, ensuring that the guidelines enabled other municipalities to establish mechanisms increasing SMMEs’ access to business opportunities and eliminating potential barriers to operation.
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