Question NW655 to the Minister of Small Business Development

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05 September 2019 - NW655

Profile picture: Zungula, Mr V

Zungula, Mr V to ask the Minister of Small Business Development

Whether, in light of the Legacy Report of the Portfolio Committee on Small Business Development of the Fifth Parliament, wherein Recommendation 15.3 states that there is a lack of a national legislative framework to deal with the dominance of foreign nationals in the micro economy (details furnished), she has found that public hearings need to be held to engage South Africans on the specified issue; if not, why not; if so, what are the relevant details?””


The Department of Trade and Industry back in 2013 drafted a Business Licensing Bill which amongst other things was developed:

  • To provide for a simple and enabling framework for procedures for application of licensing of business by setting national norms and standards; to provide for framework for co-operative governance and harmonisation of standard procedures and minimum, requirements for application of business licence;
  • To provide for framework for support monitoring and standard setting by national government in order to build local government into an efficient, frontline agency capable of integrating the activities of all spheres of government for the overall social and economic upliftment of communities in harmony with their local natural environment;
  • To provide for the appointment of inspectors; to provide for framework of penalties and administrative fines for non-compliance; and
  • To repeal the Businesses Act, 1991 and all proclamations, notices, regulations promulgated under that law; and to provide for matters connected therewith.  

The Bill went through the stages of the legislation development processes including the tabling in Parliament in 2014. However, due to dissatisfaction from the business formations, the Bill was sent back to the dti in 2014 for further consultations. The dti spent a greater part of 2014 consulting with business formations and other relevant stakeholders. The process of retabling the Bill was not finalised given the transfer of the mandate of small business development to the newly formed Department of Small Business which did not adequate capacity to finalise the process.

Therefore whether it is regulations or legislation that is aimed at dealing with the issues around managing the economic activities in the microeconomy I am of the view that it will not be necessary to undertake consultations for the third time on the same issues.

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