Have you wondered what is red tape reduction? Meet the team, and read about some of the successes at the Department of Economic Development and Tourism during the past financial year
The Red Tape Reduction Unit (RTRU) was established by the then Minister of Finance and Economic Opportunities, Alan Winde. Red Tape is defined as long queues, onerous legal and regulatory requirements, endless paperwork and protracted processes for both Government and businesses. For the Western Cape, the Ease of Doing Business is about addressing the binding and systemic constraints (External), and the red tape of government and its agencies that inhibit economic growth.
The Western Cape Government has values which drives its citizen centric service delivery approach within the fabric of its culture. For the Red Tape Reduction Unit, the values of Innovation, Responsiveness, Care as well as Integrity are at the heart of how they see their purpose, and their role within economic development for our Province! It's because of these values, that the Unit has responded to the need to contribute to an enabling environment, and help create a space for the private sector to create jobs for our economy.
Did you know, that the Red Tape Reduction Unit as part of the Business Support Helpline Service assisted over 10 000 businesses since its inception in 2012?! The Business Support Helpline Service is a National good practice within the Public Sector, where businesses are able to logg their enquiries when experiencing a red tape barrier preventing them from sustaining and growing their businesses. It's the flagship service of the Unit, which not only provides businesses with a measure of accountabiility, but it has navigated and created an environment of responsiveness and care (within our values) for the Unit, as well as the entire Department of Economic Development and Tourism.
Lets take a look at how the Unit has reduced red tape for businesses in the Western Cape
The Unit approaches red tape reduction by looking at the following areas:
- Regulatory reform
- Business process improvements
- People
- Communications
- Case management (Business Support Helpline Service)
Simply phrased, the unit focuses on proactive and reactive measures to address the bureaucracy encountered by businesses and citizens. This approach is needed as we shift towards a state that requires capability for the future, and a state that has the capability to deliver on services for private sector led growth.
Meet the team behind the red tape reduction machine
Left to right: Cindy Rose, Benson Mchunu, Aeysha Augustus, Bandile Ngcolomba, Nonzukiso Dyantyi, Keesha James, Michelle Ellis, Joshua Isaacs and Pontsho Mfolo.
The past year at a glance
Business Support Helpline Service
The Unit's national good practice, being the Business Support Helpline Service logged 703 cases from businesses seeking assistance with their red tape challenges. The service resolved 639 of cases, resulting in a 91% resolution rate, and a 80% satisfaction rate! Not only does the unit remove red tape barriers, but as part of the principles of Batho Pele, they also engage businesses on the quality of the service in order to improve where necessary by means of a survey!
Another major success in the past year was the R10 million rand Municipal EoDB Fund. The fund’s main objective was to make it ‘EASIER’ to do business, and thus, helping our economy to grow!
R10 million Municipal Ease of Doing Business Fund 2022/2023
34 applications were received from non-metro municipalities. Proposals were based on interventions that would reduce red tape and promote the EoDB in the municipality.
11 municipalities received funding for the digitisation of business-facing services including:
- Business licensing
- Building control
- Informal trading permits
- Outdoor Dining permits
- Event permits
Other interventions included the upgrade of a municipality website, the development of a case management system and the upgrade of a Building Plan submission portal.
Two notable projects resulting from the fund:
1. Municipal SMME Model Policy and By-Law
Municipalities experience similar challenges, so it was not a surprise when a trend was identified in 4 applications received from 4 different local municipalities. Bergrivier, Matzikama, Overstrand and Swartland submitted applications pertaining to the policies and regulations governing SMMEs. Given this demand, the RTRU decided to develop a Municipal SMME Model Policy that could be implemented in each of the municipalities. As a result of this great achievement, Benson Mchunu (Deputy Director within the RTRU) will be participating in a roadshow with WESGRO around the policy, and its benefits for businesses and municipalities!
What does this mean for municipalities and businesses?
The model policy promotes a business-friendly regulatory environment that will enable municipalities to remove red tape and implement appropriate systems to improve relationships with the SMME sector. The policy also provides a clear mechanism by which to reduce the administration constraints impacting the growth of SMMEs.
2. Bitou Municipality’s website upgrade
Bitou Municipality required their website to be upgraded to improve how businesses and citizens engage. The upgraded website features include the latest Drupal software, a ‘Doing business’ tab, embedding their social media on the home page, and updating its search functionality so that businesses spend less time searching for critical information. Also included is clearly designed content for informal traders, and those seeking information on permits.
What does the upgraded website mean for the municipality and businesses?
Businesses experience a reduction in complexity, and time when searching for information linked to Bitou Municipality. The ‘Doing business tab’ allows businesses to access key information on doing business in or with the municipality. The municipality has an active social media presence, so having their social media accounts embedded on the website will support directing citizens and businesses to their accounts.
Regulatory interventions
The RTRU worked on 9 commentaries, with 8 submissions being made to National Government to improve the EoDB. Examples include the Copyright Amendment Bill.
The Unit has also championed the roll out of Regulatory Impact Assessment (RIA) capacity building to 30 officials from the City of Cape Town (CoCT). Officials were capacitated with the necessary skills to quantify the impact of existing or proposed legislation and policies.
RIA Training conducted with CoCT officials
A culture of Ease of Doing Business is required to deliver citizen- and business-centric services
The RTRU is responsible for advocating for an EoDB culture within the WCG. In the past year, the RTRU hosted an EoDB Awareness Event with WCG officials and other stakeholders such as the CoCT.
The event stimulated thinking around the ways in which attendees deliver services to citizens and businesses in the Province and highlighted the importance of placing the needs of citizens/business at the centre of service delivery.
Left to right: Dr Almero Oosthuizen (Department of Health and Wellness), Dr Cherise Dunn (Africa Makes Foundation), Minister Mireille Wenger, Michelle Ellis and Aeysha Augustus (both Red Tape Reduction).
Growth for Jobs Strategy (G4J): The road ahead for the RTRU and their projects
A whole-of-government development permitting initiative: The Red Tape Challenge Fund
The Red Tape Challenge Fund is a collaboration between the RTRU, Department of Environmental Affairs and Development Planning and selected local municipalities aligned to the G4J strategy.
The overall outcome of the Fund is the drastic improvement of municipal development permitting services and the land use management system, including the regulatory environment intended to stimulate exponential economic activity and growth.
Partnership with WESGRO: Municipal Model Film Policy and By-Law Roadshow
The RTRU also developed a model policy and by-law for film permitting. This policy and by-law will be workshopped in partnership with WESGRO to municipalities across the province. This allows for tailored support to municipalities on its adoption and roll-out, which will be based on the individual requirements of each municipality.
Further information on the Model Film Policy and By-Law can be found here
Municipal Red Tape Reduction Blueprint
The RTRU intends to launch the Municipal Red Tape Reduction Blueprint this year. The Blueprint will illustrate and outline how to undertake red tape reduction interventions in a municipality and will be workshopped with municipality officials. The intervention speaks to building a capable state, in order to make it easier to do business.
Through the Blueprint, the RTRU will contribute towards building capability of red tape reduction in municipalities.
The Red Tape Reduction Unit is excited to be delivering on the Growth for Jobs Strategy, to help make Africa the easiest place to do business in by 2035. The Team has since expanded, and new members will be joining a culture of responsiveness within the Department of Economic Development and Tourism to help our province grow, and enable private sector led growth!
