RED TAPE REDUCTION ENGAGEMENTWESKUS SAKEKAMER, SALDANHA

22 OCTOBER 2015

CONTENT

• What is red tape?

• SA’s ranking in global competitiveness indices

• National perspective of red tape reduction

• Western Cape Red Tape Reduction Unit

• Initiatives

• Success Stories

• Future Initiatives

• Challenges

What is Red Tape?

• Legislation that is unnecessary, inflexible or ill-considered

• Inefficient systems = Overlap, duplication, lots of paperwork, lengthy delays in processing

• Lack of or poor communication = uncertainty regarding timelines, procedures, etc.

which interferes with …

It includes …

• the ability to compete in a global market

• the development of new enterprises

• growth of existing enterprises• job creation• government’s ability to improve an

efficient service

What is red tape reduction?

Reducing administrative and regulatory inefficiencies while maintaining: • high standards• a level playing field for businesses thereby:• improving the efficiency and effectiveness of government services to

its citizens, especially economic citizens (business)• making easier, cheaper and faster to do business in the Western Cape

compromising important public objectives such as:• protection of the environment• health and safety• consumer and public protection• compromise government internal controls

without

International benchmarks for measuring an enabling environment for business / competitiveness

1.Ease of doing business : “Doing Business” reports

(World Bank)

Doing Business reportAn annual survey that - • assesses regulations affecting domestic firms in 189

economies • ranks those economies in 10 areas of business

regulation, such as starting a business, registering property, getting credit and trading across borders

• looks primarily at small and medium-sized companies in the largest business city in a country (in SA, Jhb-Pta)

SA in constant slide from 2011 – 2014 (34-35-39-41)

International benchmarks for measuring an enabling environment for business / competitiveness

2. Competitiveness: “Global Competitiveness Index” (World Economic Forum)

Global Competitiveness Index An annual survey that – • assesses the competitiveness of 144 economies• across 12 pillars – the Competitiveness Index• including: restrictive labour regulations, inefficient

government bureaucracy, corruption, access to finance, tax rates and regulation, etc.

• provides a platform for dialogue between government, business and civil society about actions required to improve economic prosperity

SA slipping here as well

International benchmarks for measuring an enabling environment for business / competitiveness

So …How does SA measure up?

How does SA measure up? Doing Business 2011 – 2014

SA’s latest ranking: 41st out of 189 countries (previously 32nd/34th /35th /39th - oldest to latest)

South AfricaEconomy Overview

Region Sub-Saharan Africa DB 2014 DB 2013 DB 2012 DB 2011Income Category Upper Middle

Income: 50 566 75

41 39 35 34Population

GNI per capita (US$) 6,960

Topic Rankings DB 2014 RANK DB 2013 RANK DB 2012 RANK DB 2011 RANK

Starting a Business 64 53 44 75Dealing with Construction Permits 26 39 31 52

Registering Property 99 79 76 91Getting Credit 28 1 1 2

Protecting Investors 10 10 10 10Paying Taxes 24 32 44 24

Trading Across Borders 106 115 144 149Enforcing Contracts 80 82 81 85Getting Electricity 150 150Resolving Insolvency 82 84

124

How does SA measure up? GCI 2013

How does SA measure up? GCI 2014

WESTERN CAPE RED TAPE REDUCTION UNIT

• Established in 2011

• Department of Economic Development & Tourism

• Integrated Economic Development Services

WESTERN CAPE RTR UNIT - INITIATIVES

Looking back.. What

we’ve achieved

Looking forward.. What we are planning

INITIATIVES

Business Helpline 0861 888

126www.westernca

pe.gov.za/redtape

What we have done.. And the benefit/ result

to business…

Established a call centre

with phone, e-mail, SMS,

please call me and walk-in

access .

Easy access to business advice and

support with actual red tape related

issues.

Approx. 4 380 cases logged with contact centre since July 2011 • Some 70% closed at call centre – information and referrals• Of those referred to RTRU, about half (14% of total) are

resolved in favour of complainant businesses• W.r.t. the rest - ongoing data analysis for systemic solutions

INITIATIVES

Regulatory Impact Assessme

ntsWhat we have done.. And the benefit/ result

to business…

Investigation on

possible

institutionalisation

of RIA in the

province

Better regulation, with

possible impacts having

been considered and

suitable mitigations in

place

INITIATIVES

Municipal Support

Programme What we have done.. And the benefit/ result

to business…

Assistance to

muni’s in Cape

Winelands,

West Coast,

Overberg and

Eden district

municipalities

Improvement in

efficiencies of

processes delivered to

businesses in the

regions

INITIATIVES

Red Tape Challenge

What we have done.. And the benefit/ result

to business…

• Inaugural Red

Tape Challenge in

2013 (5 WCG

depts)

• 2014 iteration –

11 departments

Increased awareness and

commitment in the WCPG

to reduce red tape to

business

INITIATIVES

Red Tape Reduction Conferenc

e What we have done.. And the benefit/ result

to business…

Inaugural Red Tape

Reduction

Conference held on

29 & 30 September

2014

Before: No central access

point to raise red tape-

related issues

After: Easy access to

business advice and red

tape support

INITIATIVES

RTR Transvers

al Workgrou

pWhat we have done.. And the benefit/ result

to business…

• Gathering of govt

depts, muni’s and

business reps

• Initiatives to

address red tape

for business

• Platform for business to

engage govt on red tape

and arrive at commonly

agreed solutions

• Sharing of successes

INITIATIVES

Research Initiatives

What we have done.. And the benefit/ result

to business…

Business support & red tape: Call centre, 20 access points & partnership network with stakeholders

Before: No central access point to raise red tape-related issuesAfter: Easy access to business advice and red tape support

SUCCESS STORIES

• Inam Creche, Franschhoek (Stellenbosch Mun.) • Daneel Diamonds (Stellenbosch Mun.)• Falcon and camel cases Atlantis Dunes (CoCT)• Melomed Hospital (CoCT)• Kraaibosch filling station (DT&PW)• Card payments at WCG offices (DEDAT &

DT&PW)• V&A Baths, Worcester (DHS)

SUCCESS STORIES

• Inam Creche, Franschhoek (Stellenbosch) • Daneel Diamonds (Stellenbosch Mun.)• Falcon and camel cases Atlantis Dunes (CoCT)• Melomed Hospital (CoCT)• Kraaibosch filling station (DT&PW)• Card payments at WCG offices (DEDAT &

DT&PW)• Permits for window cleaning (CoCT)

ONGOING FRUSTRATIONS

• Delays in approval of special event liquor licences (DEDAT – WCLA)

• No facilities for card payments (WCG & nat. depts, e.g., PRE and Master’s office)• Delays in commenting on heritage

approvals (Heritage Western Cape)• Delays in abnormal load permits (DT&PW)• Generally, inconsistent decision-making and

non-responses

Thank you

Tel: Fax:

www.westerncape.gov.za

Contact Us

Raybin Windvogel Director: Red Tape Reduction

021 483 9417

Raybin.Windvogel@westerncape.gov.za

021 483 4892