Finance and Economic Opportunities

a] Since the Red Tape Reduction Unit [“RTRU” or the “unit”] was formally established in 2012 there has been many learnings of a strategic, operational and organisational nature. The unit primarily focuses on a hybrid approach blending reactive interventions with proactive so as to improve the business environment across the Western Cape.

The unit undertakes this through, [1] eradicating unnecessary red tape and meaningless bureaucracy in government and its agencies, and [2] resolving ad hoc delays and blockages affecting entrepreneurs and or groups of businesses. These activities are primarily performed through, [1] regulatory reform, [2] improving [government] systems and procedures, [3] improving communications with business, and [4] direct interventions through case management.

Since inception the unit has specifically initiated the following as to making it easier to start and/or expand a business:

1. Regulatory Reform

One of the functions of the unit is to provide comments on bills, draft regulations and/or policies. More than 60 commentaries have been submitted on draft legal instruments to either municipalities, provincial and/or national spheres of government. The unit assesses the legal instruments and provides comments based on the burden the instrument may have on businesses. Some examples of areas for commentary submitted are Liquor, Immigration, Labour as well as instruments geared specifically at businesses such as the Companies Amendment Bill, South African Youth Development Act and the National Integrated Small Enterprises Development Masterplan 2022. In addition to this, the unit also submits proposals for amendments to existing legislation as and where required. Currently, the unit is also drafting 2 draft model by-laws to be adopted by municipalities in order to standardise processes relating to events and film permits.

2] Improving government systems

Several business improvement projects which includes the proposed improvements in respect of the application processes for applying for various permits or licences by government. In the last financial year, the unit supported the Western Cape Liquor Authority with digitising its application systems. Liquor license applications and complaint forms are currently hand - delivered or couriered to the Liquor Authority which includes payments. The designed system resolves the former and streamlines client services and access to the relevant information. Additionally, the unit supported various municipalities in further digitisation, this had widespread impact in terms of streamlining processes and systems, sectors benefited here include (but are not limited to) Construction, Property Development, Environmental as well as architects, planners and other practitioners.

3] Communications

More than 33 advocacy and communication initiatives have been concluded over the years. In 2014 alone more than 10 608 011 people were reached through mass media and above-the-line communication. In addition to a range of media, the unit also relied on personal engagement and roadshows, both in targeted, high-level meetings and presentations on the one hand and public platforms on the other. More recently [2021], the unit partnered with Enterprise Development Unit [ED] to segment the “access to finance” webinar into smaller chapters. These chapters were then promoted widely with the aim to assist businesses with information relating to accessing finance. Moreover, in the same year, the unit used social media engage businesses on i) key information for each funder and ii) key information on the new E-PS requirements. Lastly, the unit translated its booklet “How to start a business” into a video and this was shared across social media for easy accessibility [video can be found at https://www.westerncape.gov.za/red-tape-reduction/our-guides-and-resources].

4] Case management

Since its inception in 2012, the Business Support Helpline has logged more than 11 000 cases as received by businesses.  The departmental service was brought in-house in 2016/17, a departure from the previous model where incoming enquiries, complaints and requests for assistance were handled by an external service provider managed by CEI and forwarded to the unit for investigation. As part of the service, the unit developed a Case Management System coupled with a dedicated helpline and email address to receive all requests. Additionally, the system records and monitors the resolution of all cases received and assists with trend analysis of systemic challenges.

Trend analysis reports generated by the system, have also assisted the RTRU to identify and implement interventions that supports the reduction of red tape in the province which allows business to create/sustain revenue and jobs. 

The table below is based on the case information collected for the period April 2019 to March 2022 and illustrates the case categorization for each period and the possible impact on business creation and sustainability and expansion.  Cases ranging from requests for information on how to access funding and how to start a business, to red tape-related issues e.g., delayed building plan applications, inefficiencies at the Port of Cape Town, access to business infrastructure – land/premises, water and electricity connections etc., were some of the cases that were logged with the unit.

	2019/2020	2020/2021	2021/2022
Total number of businesses assisted with information to aid in business start-up/sustainability/expansion	336	606	234
Total number of businesses assisted with red tape-related issues that may have led to business sustainability/expansion	168	371	199

More specifically, in terms of access to funding and how to start a business the unit has received the following number of cases;

YEAR	TOTAL CASES
2019/2020	142
2020/2021	136
2021/2022	146

The success and impact of ease of doing business interventions can be seen in the attainment of the R 1 billion cost savings and benefits to the Western Cape economy in the last 5-year reporting period.

[b] how much money has been spent on this unit every year since its inception?

Since the inception of the RTR programme the unit has been allocated approximately R 49 million. Meaning that the provided benefits of R1 billion to the economy and business is 20 times more than the amount of money spent by the unit. This excludes any other benefits to the economy as reflected above e.g UIF TERS.

Additionally, in 2011 RTR was a new concept, consequently research had to be commissioned to understand the lay of the land as well as to gauge international best practices as to give credence to the RTR policy direction.