R10 million Municipal Ease of Doing Business Fund launched

24 March 2022

We have officially launched the R10 million Municipal Ease of Doing Business Fund, which will provide capacity and funding support to municipalities to make it easier for businesses, to do business in the Western Cape.

Making it easier to do business in the Western Cape is a key priority. That is why the R10 million Ease of Doing Business Fund will support municipal interventions to reduce regulatory burden, improve business processes, and ensure effective communication to businesses, with the overall impact of improving the environment in which businesses operate.

The Fund plans to support at least 7 to10 municipalities to improve the institutional capacity of the municipality to improve the business enabling environment. The objectives of the fund are to:

Alleviate the administrative and other associated burdens, including the time, cost and complexity for both businesses and municipalities;

Improve overall performance of municipal services and processes related to business-facing services, such as permitting; and

Support both district and local municipalities to institutionalise Ease of Doing Business and to become well-functioning institutions, which deliver quality and efficient services.

Four local municipalities, including Knysna, Hessequa, George and Drakenstein, have already benefitted from the 2021/22 iteration of the fund, which focused on improving government-facing services in the construction and planning sector.

The funding allocated to the four municipalities amounted to R1.2 million.

A concrete example of how key interventions can make it possible for businesses to firstly, stay open and to then allow for the opportunity to expand, is the assistance provided to Shonaquip Social Enterprise.

This local business specialises in disability support services, which includes the manufacturing and suppling of equipment designed to help disabled children and adults become mobile and thereby, part of their communities.

Executive Director of Shonaquip, Shona McDonald , approached the Department of Economic Development and Tourism (DEDAT), through the Red Tape Reduction hotline when she needed assistance with an outstanding and overdue payment owed to her business by the Eastern Cape Government’s Department of Health for goods delivered.

Due to the assistance provided by DEDAT, Shonaquip received the outstanding payment owed to her and was able to pay the salaries of 84 staff members and stay open for business.

Small businesses are the life blood of our economy. That is why we will continue to implement innovative solutions, like the Municipal Ease of Doing Business Fund, to make it easier to do business and to grow businesses in the Western Cape.

Issued by David Maynier, Provincial Minister of Finance and Economic Opportunities, 24 March 2022