On the 10th of February 2022, President Cyril Ramaphosa’s State of the Nation Address [SONA] for the 2022 highlighted plans for SMMEs and how the red tape against the SMMEs will be eliminated in order to boost and develop small businesses in South Africa.
Ramaphosa mentioned in his speech that, the government is working on a new social compact process to review labour market regulations for smaller businesses to enable them to hire more people, while continuing to protect workers’ rights. A new, redesigned loan guarantee scheme is being introduced to help small businesses bounce back from the pandemic and civic unrest. This new bounce-back scheme incorporates the lessons from the previous loan guarantee scheme. It will involve development finance institutions and non-bank SME providers in offering finance, expand the types of financing available and adjust eligibility criteria to encourage greater uptake.
These are some of the points he pointed out in the SONA 22 speech:
- We are reviewing the Businesses Act – alongside a broader review of legislation that affects SMMEs – to reduce the regulatory burden on informal businesses;
- We are committed to making it easier for businesses to grow and create jobs, and we are starting by reducing the red tape that is preventing them from doing so. Mr Sipho Nkosi has been appointed to head up a team in the President’s office to cut red tape across government. Mr Nkosi has extensive experience in business, including as the CEO of Exxaro Resources, and is currently the Chairperson of the Small Business Institute.
- The red tape team will identify priority reforms for the year ahead, including mechanisms to ensure government departments pay suppliers within the required 30 days.
The team will also work with other departments and agencies to unblock specific obstacles to investment and business growth. It will support current initiatives to simplify processes relating to property registration, cross-border trade and construction permits.
To view and read the speech click on the below:
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