Small businesses across South Africa could face a bureaucratic nightmare if the draft Business Licensing Bill is passed, according to the Democratic Alliance. The party has started a national petition, claiming that the bill will bury entrepreneurs in red tape and make it even more difficult for South Africans to make a living. This follows the government’s proposed Business Licensing Bill, which aims to regulate a wide range of commercial activities but has faced strong opposition.
The draft legislation, published by the Department of Small Business Development, would require all businesses, from small startups to larger enterprises, to register with local municipalities and obtain licences valid for five years. Inspectors would have broad powers to demand proof of a licence, issue fines, or confiscate goods, raising concerns about overreach and red tape. The bill is currently open for public comment.
Critics, including the Western Cape government, have slammed the Bill as vague, confusing, and unworkable. Western Cape Premier Alan Winde warned that it adds unnecessary bureaucracy, duplicates existing compliance requirements, and could slow down business start-ups, threatening small business growth and job creation. “Legislation like this does nothing to support small business growth and job creation.
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The latest QLFS showed that 77,000 jobs were created in the WC – this is because the WCG is driving programmes that directly support business growth. We oppose this Bill and ask that it be withdrawn and reconsidered.” The Centre for Development and Enterprise (CDE) also condemned the Bill, stating that it expands government control over almost every type of business and grants inspectors sweeping powers that could enable corruption.
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