Red Tape Reduction interventions saves Western Cape economy R1.85 billion

Between May 2019 and September 2022, the Western Cape Government’s red tape reduction and ease of doing business interventions resulted in a saving of R1.85 billion to the Western Cape economy.

Minister of Finance and Economic Opportunities, Mireille Wenger, said: “Cutting red tape is a key priority because businesses, especially our small businesses, that are so important to growing our economy and creating jobs, should be able to focus on their operations and expansion, rather than being bogged down with government red tape and bureaucracy.”

The interventions, implemented by the Department of Economic Development and Tourism’s Red Tape Reduction Unit (RTRU), and assessed by an internal analysis, realised the whopping R1.85 billion savings over the last three and a half years.

Minister Wenger continued: “Our aim is to make the Western Cape the easiest place to do business in South Africa and enable jobs. This work was evidenced in the release of the Quarterly Labour Force Survey data that showed 62 000 new jobs were created in the Western Cape during the first quarter of 2023. A key part of achieving this and the breakout economic growth we need to create jobs is removing barriers businesses face. That is why we focus on cutting red tape and the regulatory burden on businesses.”

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%.

“I was particularly pleased with the fact that surveys conducted with businesses who have logged cases on the system reported an 80% satisfaction rate, indicating that the dedicated RTRU is able to effectively assist in making it easier to do business in the province. This is worth celebrating.”

The RTRU approaches reducing red tape, thereby making it easier to do business and create jobs by:

• Ensuring an effective and efficient Business e-Helpmail Support 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.

“I would like to thank the dedicated officials of the RTRU for their hard work. We will continue to work tirelessly with all levels of government, the private sector, and stakeholders to remove obstacles to enable the private sector to do their job of contributing to economic growth and job creation in the Western Cape.” concluded Minister Wenger

For more information or assistance with red tape issues, please email on redtape@westerncape.gov.za, or visit the website - https://www.westerncape.gov.za/red-tape-reduction/contact-us