Saving Billions In A Thriving Western Cape Economy

Regulatory ‘red tape’ is a known hindrance to business establishment and expansion, no matter the sector. Launched in 2011, the Department of Economic Development and Tourism’s (DEDAT) Red Tape Reduction Unit (RTRU) works to solve problems and remove red tape barriers preventing businesses from growing, sustaining revenue and jobs. The work of the Unit ensures that businesses are able to grow and thrive.

The priority of cutting red tape for businesses in the province to enable economic growth and job creation was the focus of a visit by the provincial Minister of Finance and Economic Opportunities, Mireille Wenger, to the iconic Cape Grace Hotel.

Minister Wenger said: “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. Which is why I am very pleased with the work done by our RTR team, in collaboration with the City of Cape Town, to help obtain the required building permits and licenses to enable the construction and development phase of the Cape Grace’s revamp. This work will help this landmark hotel reopen in time for our peak summer season, when we are looking forward to welcoming a record number of visitors to our province and key attractions.”

“The proof of the effectiveness of these interventions are clear. Just between the period of May 2019 to September 2022, the team’s ease of doing business interventions resulted in a saving of R1.85 billion to the Western Cape economy, which is certainly worth celebrating” continued Minister Wenger.

In addition to the financial savings achieved, the Red Tape Reduction Case Management System recorded a total of 519 cases in the 2022/2023 financial year, with a resolution rate of 91%.

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.

“Businesses should be able to focus on their operations and expansion, rather than being bogged down with government red tape and bureaucracy. This objective lies at the very core of our bold new economic action plan, ‘Growth For Jobs’ or G4J. G4J is the provincial government’s plan to enable a R1 trillion jobs-rich and inclusive economy, that is growing between 4% and 6% in real terms by 2035.”

“Cutting red tape enables investment into the province where we are, through G4J aiming to make the Western Cape the investment destination of choice for local and international investors in a range of growth opportunities, providing an enabled environment and strong networks of ecosystems. And so, we will continue to work with all relevant stakeholders to remove barriers to the growth of the private sector, so we can achieve the breakout economic growth we need to create many more jobs in the Western Cape.” concluded Minister Wenger