In a collaborative effort to create a more enabling environment for local businesses, UKZN’s Graduate School of Business and Leadership (GSB&L), hosted a webinar in partnership with the KwaZulu-Natal (KZN) Provincial Government.
The KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) were the co-hosts of the event held under the title: “Red Tape Reduction: Creating an Enabling Environment for Local Enterprise Growth”.
The webinar was led by Dr Mlondli Vilakazi and facilitated by Professor Purshottama Reddy, both of the GSB&L, with the session attracting about 125 participants, including academics, government officials, entrepreneurs, and development practitioners, who explored how excessive bureaucratic procedures, commonly known as “red tape” impede local enterprise development and what reforms are needed to counter this.
The primary aim of the webinar was to stimulate dialogue on reviewing provincial and municipal policies that may be acting as barriers to business development to help promote a more business-friendly governance framework within the province.
Two keynote speakers, experts in economic development and governance, shared their insights during the event.
Director of the African Centre for Evidence at the University of Johannesburg Professor Isaac Khambule spoke about the broader socio-economic context of South Africa. He painted a stark picture: adult unemployment currently stands at 45%, youth unemployment at 66%, and more than half of the population lives below the poverty line. Additionally, 50% of South Africans depend on social grants.
Khambule underscored the critical role governments play in enabling economic growth, especially in developing countries, touching on factors such as infrastructure development, skills creation, business support and the importance of addressing issues such as corruption and the Rule of Law. Comparing global trends, he suggested that successful economic models in developed countries often rested on strong, efficient institutional frameworks, a lesson Africa could draw from.
Head of the Red Tape Reduction Unit in the Presidency Mr Lindokuhle Mkhumane emphasised that reducing regulatory burdens had become a national priority. Mkhumane noted that many in the informal sector were hesitant to transition into the formal economy due to compliance obligations, including tax requirements.
He shared several key challenges his office faces in its mandate including poor interdepartmental co-ordination, a lack of measurable performance indicators, political resistance, inconsistent policy implementation and limited capacity to digitise processes. However, he affirmed that a ‘whole-of-government’ approach had been adopted, and steady progress was being made in streamlining procedures to foster enterprise growth.
The points made by the speakers led to a lively Q&A session, in which participants engaged them on the practicalities of implementing red tape reduction strategies. Issues raised included the gap between policy and implementation, the persistence of bureaucratic inefficiencies at municipal level and the need for clearer accountability frameworks. The exchange reflected the urgency of the topic and the desire for real, actionable change across all spheres of government.
The webinar concluded with a strong call for continued collaboration between government, academia and the private sector to ensure that regulatory reform translates into tangible benefits for local businesses.
Words: Lungile Ngubelanga
Photographs: Supplied