BUSINESS LICENSING POLICY OUT FOR COMMENT
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01 March 2024
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Small Business Development
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SA Legal Academy
The Department of Small Business Development has gazetted a draft business licensing policy for comment by 31 March 2024. Underpinned by a commitment to ‘licensing justice, efficiency and suitability, and good administration’, the proposed new policy seeks, among other things, to:
- guarantee the right of every citizen to choose their trade freely
- assert ‘South Africa’s sovereign right to determine the business licensing conditions for foreign nationals in line with its national interest’
- reserve sectors ‘in respect of which a license may only be granted to South African citizens’
- ‘provide for smart and effective licensing legislation, by-laws and administrative procedures that not only contribute to reducing regulatory and administrative burdens but also drive transformation and empowerment’
- ‘provide for (the) fair, transparent and ethical allocation of business operating licenses in a particular jurisdiction, in a manner that enables the citizens to actively participate in the economic life in that particular jurisdiction, while ensuring the protection of the environment, health and safety of all other citizens is critical in ensuring social and economic growth in local communities’
- ‘promote and strengthen the coordination of concurrent constitutional national and provincial legislative competencies with respect to trade and trading regulations; as well as support provinces in their exclusive provincial legislative competence with regards to street trading’
- provide for preferential business licensing for SMMEs and historically disadvantaged communities, ‘thus increasing their opportunities to participate in the economy and contribute to economic growth’, and to
- ‘provide for measures to mitigate the effects … (of) economic shocks, crises, or disasters through the easing and emergency adjustment of business licensing regulations, procedures and requirements, as well as any other financial and non-financial relief’
To that end, the draft policy identifies and unpacks key areas of intervention.
Published by SA Legal Academy Policy Watch
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