Municipal Red Tape Reduction Challenge Fund launched

The Western Cape Government is working hard to make the province the easiest place to do business in South Africa. A key part of achieving this, and the breakout economic growth we need to create jobs, is removing the barriers businesses face.

“To ensure that we continue to cut red tape, specifically in municipalities  who are at the coalface of delivering services which enable a business-friendly environment, I am excited to confirm that we have recently launched the Municipal Red Tape Reduction Challenge Fund for 2023/24 which will fund interventions in municipalities aimed at reducing the regulatory burden, improving business processes through digitization and ensuring effective communication to businesses. Through these interventions, we aim to improve the development planning and building environment in which businesses operate in our local municipalities.” said Western Cape Minister of Finance and Economic Opportunities, Mireille Wenger.

The Municipal Red Tape Challenge Fund seeks to:

• Support projects that lead to savings (in cost, time and complexity) for both business and/or municipalities through the digitisation of services, development of overlay zoning, streamlining processes and procedures, to name a few examples;
• Stimulate an enabling business environment; and
• Support Ease of Doing Business initiatives to attract investment into local areas which will lead to economic growth and investment confidence.

“I am very proud of the impressive work done by our Red Tape Reduction Unit (RTRU), which was launched in 2011, with the aim of solving the problems that make it difficult for businesses to grow and in so doing, ensuring that we work to create an enabling environment for businesses, big and small, in the province. The proof of the effectiveness of these interventions are clear. Between May 2019 and September 2022, the red tape reduction and 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 93%, as well as a customer satisfaction rate of 80%. 

“I look forward to working with the selected municipalities through the Red Tape Reduction Challenge Fund for 2023/24, so we may do even more to help improve and streamline municipal processes, making it much easier for businesses to operate, to expand and to create more jobs in the Western Cape.” remarked Minister Wenger.

Minister Wenger concluded: “While there is still much work to be done, our efforts are bearing fruits, as revealed in the most recent Quarterly Labour Force Survey, which showed that 62 000 new jobs were created in the Western Cape during the first quarter of 2023. As the only provincial unit with dedicated resources to reduce red tape in South Africa, we will continue to do all we can to remove barriers to business growth and stand ready to share this expertise with other provinces and national government.” Concluded Minister Wenger.