SMME Advisory Note on RedTape Reduction Final_June 2025

The National Planning Commission (NPC), which oversees South Africa’s long-term development strategy, the National Development Plan (NDP), is tasked with guiding the government and society on vital issues affecting inclusive growth and sustainability. A core objective of the NDP’s Vision 2030 is to eliminate poverty, reduce unemployment, and lower inequality. To achieve these goals, the growth and vibrancy of small, medium, and micro enterprises (SMMEs) are identified as essential drivers for creating jobs and promoting economic transformation. The NDP envisions a situation in which small and expanding firms will become more prominent in generating the majority of new jobs created. It identifies SMMEs as the primary drivers of employment, with a target of generating 9.9 million out of the projected 11 million new jobs by 2030. To realise this ambition, the NDP highlights the need to reduce red tape by lowering regulatory burdens, streamlining administrative processes, and reducing the costs of doing business in key sectors. These measures are recognised as essential enablers of job creation through SMME growth and sustainability. This advisory note provides context and background on the NPC’s work on reducing red tape. It also presents a summary of the key findings and recommendations to the Presidency and government, aimed at strengthening efforts to reduce red tape and enable SMMEs to thrive, create jobs, and contribute meaningfully to inclusive and sustainable economic growth.