Johannesburg: President Cyril Ramaphosa has called for sweeping reforms to cut red tape and support small businesses, warning that bureaucratic delays at municipal level are driving away investment and limiting opportunities for township entrepreneurs. Speaking at the 2026 National Local Economic Development (LED) Summit at the Birchwood Conference Centre, President Ramaphosa said improving the ease of doing business must be a top priority for local government.
According to South African Government News Agency, President Ramaphosa emphasized the importance of cutting red tape to attract large-scale investments and enable informal traders and small township entrepreneurs to succeed. While acknowledging progress in some municipalities, he expressed concern that these remain isolated successes. Some municipalities have improved the ease of doing business with systems for zoning approvals, issuing construction permits, connecting businesses with water and electricity, and using e-registration systems. However, the President noted that these municipalities are exceptions rather than the norm.
He pointed out that administrative inefficiencies continue to block economic activity, with bureaucratic delays at the municipal level preventing local investments from coming to fruition. Among the key challenges are delays in issuing business licenses, which hinder small enterprises from accessing support. President Ramaphosa stressed the need for change and highlighted ongoing government efforts to address these issues through policy reforms, such as the Business Licensing Bill and the Red Tape Reduction Framework. He called on municipalities to take decisive action in driving their own red tape reduction reforms.
The President also urged stronger collaboration between municipalities and the private sector to unlock local economic potential, advocating for continuous engagement with local business associations and forums to understand and address their concerns. He highlighted the influence of business-friendly municipalities on investment decisions and encouraged established businesses to partner with municipalities, develop local suppliers, invest in skills, and open value chains.
As the summit progressed, President Ramaphosa emphasized the need for a program of action with clear deliverables and timelines to create a new reality for every South African business in every municipality. He concluded by reaffirming the country's entrepreneurial potential and the necessity of creating an enabling environment for it to thrive, stating that South Africa is a country of entrepreneurs and the task is to unleash their potential to build an inclusive economy that creates opportunities for all.