Dept aims to cut red tape

IN AN EFFORT to help the local economy flourish, the national Department of Small Business Development (DSBD) presented a Red Tape Reduction Workshop in Kimberley yesterday.

At the event, held at the Kimberley Public Library, DSBD spokesperson, Khomotso Ramaifo, said that the initiative was aimed at streamlining the services of the DSBD to the public by engaging with various role-players, including all spheres of government, local SMMEs and members of the public.

“The Red Tape Reduction Programme is focussed on promoting local economic development by working with the DSBD, the Department of Co-operative Governance and Traditional Affairs (Cogta), small business, the South African Local Government Association (Salga) and others,” Ramaifo explained yesterday. “The main aim is to remove the barriers that are currently preventing the establishment of new businesses while encouraging the growth of existing entities.”

Ramaifo said that a national study had identified key areas that need to be addressed, adding that input from local and provincial government structures would further assist in creating a conducive environment for local economic development.

“Among the findings of the study were that there were concerns regarding the 30-day payment for services. There are instances where all accounts are paid within this time period but there are also service providers who are owed money. This is something that will need to be addressed as even missing one payment, because you are owed money, can be very detrimental to a business.

“We also found that there are concerns regarding the process of business registration, which is taking too long and needs to be reduced.

During yesterday’s workshop, the CEO for the Northern Cape Chamber of Commerce and Industry (Nocci), Sharon Steyn, said that local businesses in Kimberley were not getting the necessary support from government, while businesses in Upington seemed to be thriving.

“There are also concerns about the fact that Sol Plaatje is not awarding tenders to local businesses and that business plans are simply not available on request. Payment within 30 days just doesn’t happen and business registration seems non-existent.

“In Upington, business is booming. However, in Kimberley, the provincial capital, there seems to be very little development.”

The general manager of Local Economic Development for the Sol Plaatje Municipality, Phetoli Sithole, said that the sale of tender documents to prospective applicants was another cause for concern and he encouraged anyone wishing to bid for a tender to download the information off the internet, free of charge.

Sithole added that a new policy came into effect on April 1 which gave preference to local companies, as well as previously marginalised groups, including women, the disabled and the youth.

“With the new policy, if there is a need for chairs, for example, we will look at the supply database to see who can provide them locally,” he said.