President Cyril Ramaphosa has promised to tackle unnecessary red tape and streamline government processes to boost investment and job creation in South Africa. Speaking at the Durban Chamber of Commerce and Industry’s 170th Annual Gala Dinner, Ramaphosa acknowledged that unreliable municipal services, crime, electricity costs, and logistics inefficiencies were discouraging investment and constraining economic growth. The event was attended by several dignitaries, including KwaZulu-Natal Premier Thamsanqa Ntuli and Economic Development, Tourism and Environmental Affairs MEC Reverend Musa Zondi.
The Durban Chamber of Commerce and Industry chief executive, Palesa Phili, highlighted the pressures facing local industries, including cheap imports, counterfeit products, and illicit goods entering Durban through the port. She called on Ramaphosa to intervene in regulations governing industries in distress, arguing that these needed to be reviewed to protect businesses affected by cheap imports. Phili also emphasized the need for the government to be strong and aggressive in tackling counterfeit and illicit goods.
Ramaphosa said the government was identifying areas where the time required to obtain permits and licences could be reduced and unnecessary administrative stages removed. He acknowledged that businesses and households continued to face serious difficulties, particularly due to unreliable municipal services. Ramaphosa emphasized that reliable municipal services were fundamental to economic development and that public institutions needed to be accountable, efficient, and responsive to citizens and businesses.
Phili also called for reforms to help small, medium, and micro enterprises (SMMEs) overcome barriers to growth and job creation. She said these businesses faced unreliable electricity and infrastructure, red tape, limited access to finance, and labour-market regulations. Phili noted that SMMEs employed about 80% of the population in emerging markets such as Brazil and China, compared with about 60% in South Africa.
Ramaphosa warned that investment and economic prosperity depended on social stability, citing the July 2021 unrest as a reminder of the cost of instability. He emphasized that business could not thrive amid violence, intimidation, lawlessness, or fear. Premier Ntuli also spoke at the event, stating that he had inherited an administration facing the challenge of restoring confidence after the unrest.
Ntuli emphasized the importance of listening to business leaders and their concerns, highlighting the need for safety and responsive governance. He stated that the business community had partnered with the government during subsequent outbreaks of violence to help keep the city moving and protect livelihoods. Ntuli vowed to protect every factory, shop, port, and livelihood in Durban, saying, "Durban will never burn on my watch."
The event was attended by several dignitaries, including eThekwini Municipality Mayor Cyril Xaba and members of Parliament. Ramaphosa's speech and the chamber's calls for reform highlight the ongoing efforts to address the challenges facing businesses and investors in South Africa. The government's response to these challenges will be crucial in determining the country's economic growth and development.
Key points
- President Cyril Ramaphosa promises to tackle unnecessary red tape and streamline government processes to boost investment and job creation.
- The Durban Chamber of Commerce and Industry calls for reforms to help small, medium, and micro enterprises overcome barriers to growth and job creation.
- Ramaphosa emphasizes that investment and economic prosperity depend on social stability, citing the July 2021 unrest as a reminder of the cost of instability.
