The Department of Trade and Industry (the dti) in conjunction with the Department of Cooperative Governance and Traditional Affairs (CoGTA), and the South African Local Government Association (SALGA) as a support partner, will launch guidelines for the reduction of municipal red tape in support of small, medium and micro enterprises (SMMEs). The launch will take place at the Gallagher Estate in Midrand on 3 July 2013, from 10h00.
The guidelines serve as a practical implementation framework to reducing local government or municipal red tape for the enhancement of business environments with specific attention to SMMEs. These guidelines are also aimed at enhancing municipal officials’ capacity to improve the local business environment via Local Red Tape Reduction and contribute towards improved service delivery, job-creation and poverty reduction.
The Minister of Trade and Industry, Dr Rob Davies says government has developed policies, laws and regulations that encourage open markets, innovation and a more competitive economy.
“However, some of the local business environments can discourage investors (both domestic and foreign) and stand in the way of innovation, growth and the potential creation of jobs. This is exacerbated by the unfavourable regulatory environment, high costs and risks of doing business in these localities. The guidelines will therefore also serve as a means for the creation of an enabling business environment,” says Davies.
The development of the guidelines emanated from the findings of a study conducted by CoGTA and the dti in twelve municipalities across the country, which revealed that there are red tape issues at local government level that affect the operation of SMMEs. The guideline document made proposals on how to improve the local business environment with measures specific to issues that affect SMMEs and these proposals are contained in the guidelines.
Davies says that government is continuously making strides to create an enabling environment for SMMEs to operate and contribute meaningfully to the economy of the country and it is efforts such as these that seek to ensure that such an environment is created.
Trade and Industry in conjunction with CoGTA, which is a coordinating national department responsible for governance matters, particularly at the provincial and local sphere of government, and SALGA, will disseminate the guidelines to other municipalities throughout the country, which were not part of the pilot project.
This will be intended to ensure that all municipalities have access to this guiding tool. The national roll-out will provide an opportunity for these other municipalities to establish mechanisms to reduce barriers and increase SMMEs’ access to business opportunities.
