SOLLY MALATSI | Cut the red tape and let entrepreneurs, economy flourish

In philosophy, it is often said that “if you aren't moving at a snail's pace, you aren't moving at all” – a sentiment that strongly resonates with SA's economic performance, where GDP growth has averaged only 0.8% annually since 2012. This sluggish growth has left the country in a state of crisis, grappling with widespread poverty and sky-high unemployment at 32.1% – the highest in the world.

And it is not just individuals feeling the pinch – thousands of businesses shut their doors yearly because of load shedding, unfavourable business conditions, suffocating red tape and inadequate support mechanisms. This is the result of the ANC's failed economic policies.

The DA has a comprehensive economic policy designed to unleash the entrepreneurial spirit and ignite a new wave of economic growth, which has enormous potential to create many new jobs.

As a starting point, we propose removing import duties on essential business tools, such as single-cab bakkies. This targeted intervention is aimed at turbocharging small business growth, particularly in rural areas. Why bakkies? Bakkies are not merely just vehicles, they represent opportunity. They are essential for various business activities, including transportation, delivery services and logistics.

For instance, the story of Naledi, a determined entrepreneur from a rural village in the Eastern Cape. Determined to start her own delivery service, she faced a significant hurdle: the high cost of a bakkie, which was essential for her business.

This is where the DA's policy to remove import duties on bakkies comes into play. With this barrier removed, Naledi could launch her delivery service, creating jobs and stimulating economic growth in her community. This is just one example of how targeted policies can empower entrepreneurs to thrive and drive economic prosperity in SA. The playing field is levelled by eliminating these duties, opening doors of opportunity for ambitious individuals to enter the market.

Many entrepreneurs face mounting challenges in starting businesses, discouraging them and the numbers do not lie: In 2023, only 10% of individuals aged 16 to 64 planned to start a new business within the next three years, a significant drop from the peak of 20% in 2021/22.

Small businesses grapple with red tape compliance, dedicating 4-6% of their turnover to navigating bureaucratic hurdles, which impede investment and job creation. SA's low rank of 59th out of 64 countries regarding the regulatory burden for starting a business underscores the government's failure to support entrepreneurship. It also highlights a glaring oversight in nurturing economic growth and opportunity.

However, the DA refuses to accept the status quo. We recognise that small businesses are the lifeblood of our economy, driving innovation, creating jobs and fostering growth. That is why we are laser-focused on cutting through the red tape that strangles entrepreneurship. In our economic policy, we take decisive action to support entrepreneurs and improve the ease of doing business, which could unlock between 350,000 and 400,000 new jobs over the next five years.

It involves expanding "one-stop-shops' to simplify business startup processes and reduce cost barriers, creating a comprehensive business starter toolkit, and improving access to funding through startup loans, microfinance, and other non-traditional sources such as crowdfunding and angel investors to enable businesses to list and raise capital through the Johannesburg Stock Exchange.

Our approach is not just about tearing down barriers but also about building bridges to opportunity. We recognise the untapped potential of the informal economy and are dedicated to empowering informal entrepreneurs. Through simplified registration processes and functional trading spaces, the DA is committed to supporting individuals like Moses, a street vendor in Johannesburg, and unlocking opportunities for him to earn a livelihood, scale his business, and create jobs for members of his community.