Govt making SA more competitive destination for investment: President

President Ramaphosa said the government is now working on a smart system for work permits, for scarce skills and to encourage companies to set up their African corporate headquarters in South Africa.

President Cyril Ramaphosa says Government is hard at work to make South Africa a more competitive destination for investment -  by improving the ease of doing business.

“Steadily but surely, we are making South Africa a more competitive destination for investment by reducing the cost, and improving the ease of doing business,” the President said on Wednesday at the 2nd South Africa Investment Conference, taking place at the Sandton Convention Centre in Johannesburg.

“We have set ourselves the ambition of being in the top 50 countries in the World Bank’s Ease of Doing Business index within the next three years.”

One-Stop Shops

Through the expanding network of Invest SA’s One-Stop Shops, the Government is working to remove bureaucratic and administrative hurdles to investment, providing new entrants with a single contact point for licensing and regulatory compliance.

Biz Portal

This week, the government launched an integrated online platform for the fast, efficient and inexpensive registration of a company. Known as Biz Portal, this online portal promises to be a game-changer.

Through collaboration among several government agencies and with the involvement of the four major banks, it is now possible for applicants to register their company at the same time as they register for tax, a domain name, a BEE certificate, the Compensation Fund, and the Unemployment Insurance Fund, and open a business bank account.

“We are aiming for a registration process that can be completed in one day,” the President said. 

Detailed work is underway between the government and industry to improve the efficiency of the various permitting processes, including, for example, the issuing of water use licenses.

Data costs

The President said the government has taken steps to provide greater policy certainty in areas such as mining, oil and gas, and telecoms as part of efforts to create a stable environment for investment.

“We have initiated the release of the high-demand broadband spectrum, which will bring down data costs and encourage investment.”

A policy framework has been gazetted and the regulator has published its proposals.

Visa-free nations and e-visas

As part of attracting skilled professionals and growing tourism, the government has prioritized immigration reform and changes to the visa regime.

“More countries have been added to the list of visa-free nations for inward tourism, the requirements on unabridged birth certificates for young tourists have been abolished, and we are piloting a new e-visa portal later this month.”

Through the e-visas, applicants will be able to access visas online, eliminating the need for applicants to travel long distances to visit South African missions abroad to acquire visas.

The department has also located visa services within the offices of various investment facilitation agencies around the country.

Visa requirements have been simplified for countries such as China and India, which are key markets for tourism to South Africa.

Recently, the government also waived visas for travelers from Saudi Arabia, the United Arab Emirates, Qatar, New Zealand, Cuba, Ghana, and Sao Tome and Principe.

Smart system for work permits

President Ramaphosa said the government is now working on a smart system for work permits, for scarce skills and to encourage companies to set up their African corporate headquarters in South Africa. 

Reducing public spending

As the Minister of Finance indicated in his medium-term budget policy statement last week, one of South Africa’s central priorities is to return the country to a sustainable fiscal path.

“We are taking several measures to reduce public spending, eliminate wastage and direct resources to where they will have the greatest impact on long-term growth and poverty alleviation,” the President said. 

(With Inputs from South African Government Press Release)