Guidelines for Reducing Municipal Red Tape, 2012 define red tape as rules, regulations, and / or bureaucratic procedures and processes which are excessively complex and which impose unnecessary delay(s), inaction and / or costs which exceed their benefits, and / or is no longer effective in achieving the purpose for which they were originally created. Red tape results in undesirable economic, business and / or social impacts or outcomes as a result of negatively impacting on productivity. Red tape involves excessive, or unevenly enforced, regulation or rigid conformity to formal rules that is considered redundant or bureaucratic and hinders or prevents effective action or decision-making.
Government recognizes the need to review its policy and regulatory environment that continue to hinder the development, growth and competitiveness of small businesses. Government has requested all spheres to institutionalise the guidelines aimed at reducing red tape at local government level.
Government sets-aside 30% of appropriate categories of State procurement for purchasing from SMMEs, cooperatives as well as township and rural enterprises.
It’s proposed that the design of a National Red Tape Reduction Programme, with coordinated implementation by the Presidency’s Office, will be informed by lessons learnt from recent and current national red tape initiatives designed to accelerate national competitiveness & economic growth by setting targets to reduce the total costs of government imposed regulations on business.
Other Specific interventions by Government