ANC fails to provide clarity on red tape unit

Issued by Henro Kruger MP – DA Shadow Deputy Minister of Small Business Development
03 Mar 2022 in News

Note to Editors: Please find attached English and Afrikaans soundbites by Henro Kruger MP.

While the DA welcomes the ANC government’s sudden focus on reducing red tape to ease the doing of business, the ruling party’s failure to provide necessary insight is a cause for concern.

When questioned on the specific role Sasol chairperson, Sipho Nkosi, would play as head of the new red tape task team, the Department of Small Business Development was unable to provide clarity at Wednesday’s parliamentary portfolio meeting on small business development.

The DA is concerned that the appointment of Mr Nkosi could lead to a double burden on National Treasury. However, neither the Minister of Small Business Development, Stella Ndabeni-Abrahams, nor her Deputy, Sidumo Dlamini, was available to shed more light.

Red tape is one of the main culprits why small, medium and micro enterprises (SMMEs) fail in their first three years. Past studies calculate that red tape can be as high as 6.5% of GDP. SMMEs can no longer afford the ANC government dragging their feet on red tape reform.

There is an urgent need for intervention on red tape. The desperate situation leaves no space for political spinning by the ANC government, and we urge the Minster in the Presidency, Mondli Gungubele, and Minster Ndabeni-Abrahams to break their silence and clear the confusion.

The DA is passionate about red tape reform have initiated a number of legislative measures in the past to ease the doing of business – all of which have been thwarted by the ANC. We are therefore, more than willing to work with Mr Nkosi, especially given the expertise of our Shadow Deputy Minister of Small Business Development, Henro Kruger, who is the only Member of Parliament to have studied the effects of red tape locally and internationally.

The DA will fight red tape with tooth and nail to create a conducive environment for small businesses that are already fragile after the pandemic.