Red Tape Reduction Unit

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The Red Tape Reduction (RTR) unit is a dedicated team focused on reducing excessively complex rules, regulations, procedures, and processes inhibiting economic growth and job creation in key areas of the South African economy.
What are the main aims and objectives?

The main aims and objectives of the Red Tape Reduction (RTR) unit in South Africa include making tangible progress in reducing excessively complex rules, regulations, procedures, and processes inhibiting economic growth and job creation in key areas of the economy, working with relevant role-players across government, the private sector, and community-based organizations. Additionally, it aims to create an enabling environment and help create a space for the private sector to create jobs for the economy, while engaging with stakeholders to simplify business regulations and compliance.

How does the program work?

The RTR unit consists of a small team – situated in the Private Office of the President – which works with relevant role-players across government, the private sector, and community-based organizations to identify and address excessively complex rules, regulations, procedures, and processes inhibiting economic growth and job creation in key areas of the economy. 

The RTR unit follows a collaborative approach to simplify business regulations and compliance, working with departments and agencies to make it easier to do business. This includes engaging with stakeholders such as Business Unity South Africa (BUSA) to discuss focus areas and priorities, particularly those affecting small, medium, and micro enterprises (SMMEs) and larger businesses.

The unit has focused on the following areas:

  • Tourism travel permits
  • Mining and prospecting rights licensing system
  • Work permits and visa administration
  • Early childhood development regulations
  • Informal trading permits and licenses
  • A key priority is to ensure government departments pay suppliers within 30 days
  • The time to process VAT refunds has been reduced from 15 weeks to 4 to 5 weeks
  • The corporate income tax audit process has been reduced from 32 weeks to 17 weeks

The RTR unit has identified these areas as priority areas for reducing red tape and has implemented measures to simplify business regulations and compliance in these domains, aiming to create a more conducive business environment for companies of all sizes and promoting economic growth.

What is the overall cost?

There is no available information on the costs associated with the RTR unit. 

How was it implemented?

The RTR team is situated in the Private Office of the President and is led by Mr Sipho Nkosi. The Presidency played a central oversight and coordination role, with direct implementation taking place through government departments and agencies, including the Department of Trade, Industry and Competition (DTIC) and the Department of Small Business Development (DSBD). Cooperation and collaboration were essential requirements for progress. At that stage, there was no permanent structure for the RTR initiative, as it was constituted of a combination of Presidency staff and part-time seconded personnel, but as the programme evolved, that staffing model could be reconsidered. There was a need to add administrative capacity to the RTR team to assist with arranging meetings, taking minutes, and associated logistical arrangements.

The concept for the RTR unit originates from the regional government of the Western Cape where their Red Tape Reduction Unit was set up in 2011. 

What impact has been measured?

There is currently no available information on the impact of the RTR unit. 

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom