Follow-Up on Presidential Commitment to Reducing Red Tape for Entrepreneurs

Tumuge Lutic Mosoane sent a message to Planning, Monitoring and Evaluation..

To
Planning, Monitoring and Evaluation.
From
Tumuge Lutic Mosoane
Subject
Follow-Up on Presidential Commitment to Reducing Red Tape for Entrepreneurs
Date
Feb. 5, 2025, 11:11 a.m.
Dear Portfolio Committee on Planning, Monitoring and Evaluation

Three years ago, the President assured the nation that government would take decisive action to reduce red tape for entrepreneurs—a commitment meant to foster business growth and economic resilience. However, the reality on the ground tells a different story. Last year alone, 1,500 entrepreneurs were forced to close shop, largely due to the very bureaucratic hurdles that were meant to be dismantled.

As an entrepreneur and the founder of Winsome Africa, a company dedicated to assisting businesses with financial automation, compliance, and sustainable growth, I have seen firsthand how excessive red tape is strangling entrepreneurship in South Africa. While there has been much talk about improving the ease of doing business, many entrepreneurs are still caught in an overwhelming web of:

Complex and costly compliance processes that disproportionately burden small businesses.
Delayed approvals for funding, permits, and licenses, which hinder business growth and investment.
Lack of coordination among regulatory bodies, making it difficult for entrepreneurs to navigate different requirements across departments.
The Consequences of Inaction
The economic and social consequences of these challenges are devastating:

Job losses: Every business that shuts down results in lost jobs, exacerbating unemployment.
Stifled innovation: Entrepreneurs spend more time battling bureaucracy than focusing on growth and innovation.
Economic exclusion: Many promising businesses, particularly those led by young black entrepreneurs, struggle to survive due to structural barriers that favor established corporations.
A Call for Entrepreneur-Led Solutions
While we appreciate the President’s commitment to addressing red tape, we cannot wait another three years for tangible action. The solution is not just in government designing policies for entrepreneurs—but in entrepreneurs being directly involved in crafting those policies.

I urge this Committee to consider the following entrepreneur-led interventions:

Establishing a permanent Red Tape Reduction Task Team that includes entrepreneurs, not just bureaucrats.
Implementing a streamlined, digital-first compliance system to reduce unnecessary paperwork and delays.
Creating a “One-Stop Shop” for business registration, tax compliance, and licensing to eliminate the inefficiencies that force entrepreneurs to navigate multiple agencies.
Fast-tracking funding and grant approvals by cutting down excessive red tape that delays much-needed capital for business growth.
My Commitment to the Solution
As someone who has built a business from the ground up and worked extensively with small enterprises to navigate financial and regulatory challenges, I volunteer to be part of any task force, advisory committee, or working group aimed at solving these issues. We, as entrepreneurs, do not just bring complaints—we bring solutions to the table.

Winsome Africa has seen how smart financial processes can ease the burden on businesses, but even with the best strategies, no business can survive an environment that is not enabling. The role of government should be to clear the path, not block it with excessive regulations.

I am requesting a formal engagement between this Committee and South African entrepreneurs—not only to discuss these challenges but to develop real, actionable solutions together.

The survival of thousands of businesses—and the economic future of our country—depends on it.

I look forward to your response and an opportunity to work alongside this Committee in transforming South Africa into an environment where entrepreneurs can thrive, not just survive.

Yours sincerely,

Tumuge Lutic Mosoane
Founder & President, Winsome Africa

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