Speech on RED TAPE ASSESSMENT BILL [B13-2016]
ACDP President, Rev KRJ Meshoe MP
According to the 2016 data released by the World Bank as part of their “Doing Business Project”, it takes approximately 43 days to “start a business” in South Africa, while in Rwanda and Burundi, it takes just 4 days.
To start a business in Côte d’Ivoire and Mauritius takes about 7 days. In Kenya, it will take 22 days, and in Lesotho, 29 days.
One of the reasons our country is unable to improve the time it takes to start a business is due to unnecessary and excessive government red tape.
The ACDP urges Government to take urgent steps to drastically reduce or eliminate red tape, which is a serious hindrance to encouraging entrepreneurship and growth.
While the ACDP concedes that this cannot be the sole responsibility of the Department of Small Business Development, we nevertheless contend that to declare this bill “undesirable” is not in the best interest of a country such as our with an unemployment rate of some 27%.
The ACDP believes that further consultations with provinces and other relevant stakeholders, as well as proposing amendments to the bill would have been the best way forward.
Small businesses in our country are suffocating because of red tape, which hinders economic growth, and which is why the ACDP urges, once again, that government remove obstacles to job creation and economic growth by removing excessive, bureaucratic red tape.