Sona 2022: Former Exxaro CEO to tackle government red tape

Former mining executive Sipho Nkosi has been hired to cut bureaucracy and red tape across government, President Cyril Ramaphosa said in his Sona on Thursday.

Nkosi, who is also chairperson of the Small Business Institute, will be based in the Presidency.

“The red tape team will identify priority reforms for the year ahead, including mechanisms to ensure government departments pay suppliers within the required 30 days.

“The team will also work with other departments and agencies to unblock specific obstacles to investment and business growth. It will support current initiatives to simplify processes relating to property registration, cross-border trade and construction permits.”

Non-payment or very late payment of businesses by government has crippled many SMMEs, despite the state’s long adopted policy to pay suppliers within days.

In 2018, former minister of small business development Lindiwe Zulu announced a national strategy that she said was being developed to address the negative impact of red tape on small businesses and cooperatives.

The National Red Tape Reduction Strategy would provide “clarity on the logic, model and theory of change that underlie various red tape interventions and methodologies, and their associated advantages and disadvantages,” she said at the time.

Nothing further was communicated on the plan.

Nkosi and his team will work with other departments and agencies to “unblock specific obstacles” to investment and business growth.

“The team will support current initiatives to simplify processes relating to property registration, cross-border trade and
construction permits,” Ramaphosa said.

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‘Useless exercise’

Speaking to reporters after Ramaphosa’s speech, EFF leader Julius Malema said doing away with red tape was the work of National Treasury, and not Presidency.

“It is a useless exercise, the red tape caused by Treasury, and needs to be removed by them. The Department of Small Business has failed, the President has gradually passed a motion of no confidence in the minister of Small Business Development, also himself effectively.”

Malema accused Ramaphosa of outsourcing the state to the private sector.

“He previously promised jobs, but failed. They govern by privatising South Africa…there was nothing on crime, health, or international relations., no follow ups either. He has given up and doesn’t seem to have an alternative.”

DA leader John Steenhuisen said he was happy with Ramaphosa stance on helping businesses grow, creating jobs and doing away with red tape.

“I was impressed, that was straight out of the DA play book. Finally, you have the head of the ANC agreeing that the status quo doesn’t grow the economy or create jobs and you need to create an environment for the private sector.

“That’s what we’ve been saying for years. Tonight’s takeaway was the president putting individuals outside of his party, into his office, to do the things that his ministers should be doing…he clearly doesn’t trust members of his cabinet to implement these plans.”

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