GNU must cut debilitating regulatory millstones sinking the economy, says FMF

5 November 2024

The Free Market Foundation (FMF) has called on the Government of National Unity (GNU) to cut the job-killing regulations that are being imposed on a South African business environment already struggling to stay afloat. 

This follows the release of a policy paper by the FMF titled, “Liberty First: Regulation.” In the report, FMF Deputy Head of Policy, Dr Morné Malan, highlights several significant regulatory issues weighing the South African economy down.  

The paper was officially released at a press briefing on Tuesday, during which Dr Malan outlined the risks associated with the current state of over-regulation in South Africa. 

“Excessive regulation, especially in South Africa’s labour, education, and healthcare sectors hampers economic growth and impedes social progress,” Dr Malan said. “Based on our analysis of, amongst others, the data presented in the Economic Freedom of the World annual report, South Africa has one of the worst regulatory environments for wage determination in the labour market and ranks in the bottom quartile for the general cost of bureaucracy as well as the distortionary impact of regulations on the business environment.”

The FMF argued that South Africa’s future depends on a regulatory framework that empowers rather than restricts, enabling the country to harness the full potential of its people and resources

“A liberalised economy is more responsive to the needs of the people it serves. Cutting red tape and reducing bureaucratic interference will not only create economic freedom but also ensure a more dynamic, inclusive, and prosperous South Africa,” Dr Malan concluded.

Click here for a soundbite by Dr Morné Malan.

Click here to read the full paper, “Liberty First: Regulation.”

Issued by Morné Malan, Deputy Head of Policy, Free Market Foundation, 5 November 2024