Cape Town- Questions abounded on Thursday night about the role of the department of small business development after President Cyril Ramaphosa tapped former Exxaro boss Sipho Nkosi to lead efforts to cut red tape in the small businesses sector.
Ramaphosa said government wants to unleash the potential of small business and has identified red tape as a big impediment to doing business in the country.
“We are reviewing the Business Act – alongside a broader review of legislation that affects SMMEs – to reduce the regulatory burden on informal businesses. We are therefore working to improve the business environment for companies of all sizes through a dedicated capacity in the Presidency to reduce red tape,” he said.
“There are too many regulations in this country that are unduly complicated, costly and difficult to comply with. This prevents companies from growing and creating jobs.”
Nkosi, currently serving as the chairman of Sasol, sits on the board of diversified financial services group Sanlam. He has also previously served as president of the Chamber of Mines of South Africa, now called the Minerals Council.
EFF leader Julius Malema said the appointment of Nkosi was a vote on the minister Stella Ndabeni-Abrahams.
