How the Western Cape Economy Saved R2.4 Billion

The Western Cape Government (WCG) is determined to make it as easy as possible for the private sector to do business and create jobs in the province.

The efforts by the Department of Economic Development and Tourism’s Red Tape Reduction Unit (RTRU) and its partners, has already helped to save the provincial economy R2.4 billion between March 2019 and March 2023.

“Our aim is to make the Western Cape the easiest place to do business in South Africa so we can enable the private sector to create jobs, rather than be bogged down by unnecessary red tape and bureaucracy. The R2.4 billion saving enabled by the RTRU shows that our targeted approach to work with all levels of government and business is working,” said Provincial Minister of Finance and Economic Opportunities, Mireille Wenger.

This objective lies at the very core of the WCG’s bold new economic action plan, ‘Growth For Jobs’ or G4J, which aims to enable a R1 trillion jobs-rich and inclusive economy, that is growing between 4% and 6% in real terms by 2035.

In assessing the impact of the RTRU’s work, the top three interventions were measured, including:

• e-License portal for liquor licenses: Implementing the digitisation of business-facing government services, in partnership with the Western Cape Liquor Authority, the RTRU funded the development and implementation of an integrated e-License online portal for the processing of liquor licenses. The establishment of a digitised business process helped to streamline and improve operational efficiencies by providing alternative servicing channel, to save businesses time and associated costs.
• Cutting through national red-tape: Assisting De Beers Marine with approval for the Gariep mining vessel to be sent to the Port of Cape Town dry dock for 112 days of maintenance and refitting; and
• Modernising government process: Working with the Department of Environmental Affairs and Development Planning, to allow for electronic notifications in terms of the Land Use Management Act, in place of post mail. By modernising government’s communication and process, the RTRU assisted in increasing effectiveness and decreasing costs and time delays for impacted people and businesses.

“Cutting red tape also means investment can flow more easily into the province, further improving our reputation as an investment destination of choice for local and international investors. We will continue to work with the private sector and all stakeholders to make sure that businesses in the Western Cape can continue to create jobs, without being hamstrung by red tape,” Minister Wenger continued.

Launched in 2011, the RTRU works to solve problems and remove red tape barriers preventing businesses from growing, sustaining revenue and jobs.
The RTRU takes a principled approach to reducing red tape to make it easier to do business and create jobs by:

Ensuring an effective and efficient Business Support Helpline Service to receive requests from the citizen and businesses for assistance;
Proactively identifying legislation and regulatory processes that represent barriers to business, or the efficient delivery of services;
Promoting a culture of making it easier to do business; and
Designing interventions based on trend analysis reporting via the Business Helpline Support service to address systemic issues that need change.

Concluding, Minister Wenger encouraged businesses, big and small, to make use of the services offered by the WCG, “If your business is being held back by red tape, I encourage you to contact the RTRU so we can help remove obstacles to business growth. Growth can only happen if the private sector is enabled to get on with what they do best – create jobs.”