How we assisted Shonaquip, a social enterprise to save 84 Jobs - News | Red Tape Reduction

How we assisted Shonaquip, a social enterprise to save 84 Jobs

28 April 2022
Red Tape Reduction Unit

Assisting businesses with red tape challenges is a crucial part of the Ease of Doing Business programme. It is critical for the Department to create an enabling environment for economic recovery by assisting businesses and even social enterprises. Social Enterprises are businesses that have specific social objectives at the centre of the business and seek to maximise both profits as well as benefits to society. Assisting social enterprises with the removal of red tape barriers that impact operations is important for the Department, as they play a very important role in society. 


Shonaquip Social Enterprise, based in the Western Cape, specialises in disability support services and supplies appropriate devices, wheelchairs, related services and provides training on addressing mobility barriers. The Executive Director of Shonaquip, Shona McDonald, approached the Department of Economic Development and Tourism via the Business Support Helpline Service when she needed assistance with an outstanding and overdue payment due to the business by the Department of Health (in the Eastern Cape).

The business was owed a large sum of revenue for goods provided (wheelchairs) to the Eastern Cape Department of Health, however, various requests to the Department of Health to process the payments yielded no result - all attempts at communication were unanswered. This delay in processing the payment resulted in the cashflow of the business being affected, impacting their ability to source supplies vital to the operation of the business.  To worsen the situation, future production was halted as a result of this delay in payment.

How did the Department of Economic Development and Tourism step in to assist the business?

Once the enquiry was received and a case was logged on the department’s Case Management System, Red Tape Reduction official, Bronwyn Kay, immediately addressed communication to the relevant officials within the Department of Health in the Eastern Cape. Ms. Kay requested that the matter be investigated in order to finalise the payment. After multiple requests to the Department of Health in the Eastern Cape, the matter had still not been resolved – however, this did not dampen the commitment of the RTRU official to see the matter through to its resolution.

The matter was escalated to the Head of Department for urgent intervention and two weeks later, Shonaquip received partial payment in parts, and the outstanding payments were in the process of being finalised.

Given the complex nature of the matter brought forward by Shonaquip, the resolution of the issue within 2 weeks is impressive!


How did intervention from the Department impact the business?

As a result of having the payment processed, Shonaquip was able to pay the salaried for more than the 85 staff it employs – which in turn contributes towards the Ease of Doing Business programme’s focus on economic growth and job creation.

A few words from Shona McDonald:

“Thank you so much for your invaluable assistance with pushing this payment process for us”

Commitment to being responsive in our service delivery to citizens upholds the values of the Western Cape Government and will ensure the acceleration of the Ease of Doing Business programme in the right direction! A culture of responsiveness is strongly encouraged within the Department, as we have identified the needs of business as a citizen as vital for economic recovery!