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South Africa has recorded its highest ever official unemployment rate, of 35.3 %, according to the results of the Quarterly Labour Force Survey (QLFS) for the 4th quarter of 2021. The jobs bloodbath continues apace while the government sits on its hands. The DA is therefore offering solutions to President Cyril Rampahosa.

Last month, President Ramaphosa acknowledged that the private sector is the engine room of job creation. He also announced the establishment of a red tape-reduction unit in his Presidency.

In light of the shocking statistics revealed by the QLFS, the DA will approach the Red Tape Unit to adopt several key proposals to unlock the potential of the SMME sector and grow jobs.

Freeing up the small- and medium sized businesses to create jobs is a matter of great urgency given that there are nearly 12 million South Africans without a job.

The DA will write to the head of the Red Tape Unit in the Presidency, Sipho Nkosi, with the following proposals:

Remove onerous BBBEE requirements for SMMEs - B-BEE legislation has ensnared SMMEs in a costly web of red tape. These regulations must be scrapped in their entirety to give SMMEs the flexibility to compete fairly and grow their business.

Impose penalties for the failure to pay SMMEs within the 30 day period - According to recent parliamentary replies to DA questions, most government departments and entities are still struggling to pay SMMEs within the prescribed 30 day period. This is constraining their growth and ability to remain in business. The DA will propose that penalties be levied against departments that fail to SMMEs on time.

Establish an SMME ombudsman - SMMEs in South Africa have little to no recourse whenever they become embroiled in a business dispute. The SMME ombudsman will act as an arbiter to resolve any disputes lodged by an SMME during the course of doing business.

Implement exemptions from the Skills Development Levy - The Skills Development Levy is nothing more than an additional tax on SMME operators trying to keep their heads above water. Based on an enterprise's size and annual turnover, SMMEs should be exempt from the Skills Development Levy to give them room to invest and grow.

Ramaphosa's Cabinet cannot continue to bury its head in the sand hoping the unemployment problem will go away. At the rate at which the SMME sector is being neglected, the National Development Plan's stated objective of having 90% of all new jobs in the sector by 2030, will remain a pipe dream.

While the performance agreements signed between the President and his Cabinet in 2020 placed job creation at the centre of the executive’s delivery objectives, last week the DA exposed how Ministers have not only failed to meet their targets, they have all failed to deliver on the promised job targets.

SMMEs are economic multipliers with a capacity to begin moving the jobs needle positively. For this to happen, it is imperative that the Red Tape Unit in the Presidency urgently provides an SMME ease of doing business guideline based on the red tape reduction proposals submitted by the DA.

Issued by Dr Michael Cardo MP and Jan de Villiers MP - DA Shadow Ministers for Employment and Labour and Small Business