Red Tape Reduction

The creation and promotion of an enabling environment for business is fundamental to a competitive and vibrant economy. The amount of red tape and bureaucracy faced by business when dealing with government is considered a key constraint to economic development and growth.

Directly linked to an enabling environment is the concept of "ease of doing business” (EDB). The World Bank Group defines EDB as the extent to which the regulatory environment is conducive to the starting and operation of a local firm. 

Red tape within government has consistently been identified as one of the core elements which restrict business development and growth. Research into ease of doing business has shown some interesting and disturbing facts, which include:

• Developing countries can improve their annual growth rates by creating a more enabling environment;
• South Africa has been consistently dropping in its ranking in the annual Doing Business Report compiled by the World Bank

Red tape is defined as:

• Non-essential procedures, forms, licenses, and regulations that add to the cost of dealing with government, or
   
• Anything obsolete, redundant, wasteful or confusing that diminishes the competitiveness of the Province, which stands in the way of economic growth and job creation or wastes taxpayers’ time and money.

Red tape interferes with:

• The ability of business to compete in a global market place as a result of unnecessary costs and or delays;
• The rate of establishment of new businesses; and
• the sustainability and/or growth of existing enterprises.

So let's work together to cut red tape and grow the economy of the Western Cape!

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