President Cyril Ramaphosa has called for urgent reforms to reduce red tape and support small businesses, warning that municipal delays are holding back investment and limiting opportunities for township entrepreneurs.
Speaking at the 2026 National Local Economic Development (LED) Summit, the President said improving the ease of doing business must be a top priority for municipalities across South Africa.
“Cutting red tape is crucial both to attract large scale investments and also to enable informal traders and small township entrepreneurs to succeed,” he said on Wednesday.
While progress has been made in some municipalities, Ramaphosa cautioned that these success stories are still limited.
“Some of our cities and municipalities have done well in improving the ease of doing business. They have systems and targets for zoning approvals, issuing construction permits, connecting businesses with water and electricity, issuing trading and business licences, including using e-registration systems. There is regulatory certainty. However, I worry that these municipalities are the exception rather than the rule,” the President said.
He highlighted ongoing administrative challenges that continue to block economic activity, particularly at local government level.
“More often than not, bureaucratic delays at municipal level prevent local investments from getting over the line,” he said.
One of the major concerns raised was delays in issuing business licences, which prevent small and micro enterprises from accessing critical government support.
“There are backlogs in issuing business licences, which, among other things, prevent micro enterprises from accessing government support. This must change,” he emphasised.
The President confirmed that government is working on solutions, including the Business Licensing Bill and the Red Tape Reduction Framework, but stressed that municipalities must take the lead in implementing reforms.
“We call on local government to drive its own red tape reduction reforms,” he said.
Ramaphosa also encouraged stronger collaboration between municipalities and the private sector to unlock local economic growth and create more opportunities.
“We would also like to see continuous engagement with local business associations and forums, so that we may understand their frustrations and address their concerns,” he said.
He added that investment decisions are often influenced by how business-friendly a municipality is.
“Investment will always gravitate towards municipalities that make it easy to do business,” the President said.
The President further called on established companies to work closely with municipalities by developing local suppliers, investing in skills development and opening up value chains.
“We must leave this summit with a programme of action that binds us to clear deliverables and timelines.
“We must ensure that the collaborative blueprint we draft here over the next two days contributes to a new reality for every South African, for every business, in every municipality, in every corner of our land,” he said.
Ramaphosa concluded by highlighting South Africa’s strong entrepreneurial potential and the importance of creating an enabling environment for small businesses to thrive.
“South Africa is a country of entrepreneurs. Our task is to unleash their potential and, in so doing, to build an inclusive economy that creates opportunities for all,” the President said.
Additional reporting by SANews.gov.za.
