Minister Lindiwe Zulu has a huge task on her hands: John Endress - CNBC Africa

Minister Lindiwe Zulu has a huge task on her hands: John Endress

Southern Africa

by Trust Matsilele 0

Small Business Development minister Lindiwe Zulu taking an oath to serve the country. PHOTO: GCIS

Some of the tasks she has to deal with include; working on the definitions of small medium enterprises and simplifying them so she knows what she will be dealing with.

(READ MORE: S.Africa cabinet could cost taxpayers billions)

Good Governance Africa’s chief executive officer John Endress told CNBC Africa that the minister would face challenging times especially interfacing with other ministries.

The new ministry will among others deal with departments of trade and industry, treasury and department of labour.

According to Good Governance Africa, South Africa and other regional economies could learn from Mauritius, Rwanda and Côte d’Ivoire that were doing well in creating a conducive environment for small businesses.

(READ MORE: Africa's SMEs require an enabling business environment)

“These three countries have managed to simplify the life of a small businessmen because running a small business is difficult, challenging and stressful,” noted Endress.

“Each of these countries has made it easier for small businesses in registering a company, paying tax, doing cross border business and acquiring work permits.”

Endress added that the process and the environment should be made easier rather than difficult for small businesses to make significant contribution.

He also warned that South Africa’s legislation was complicated and small business were a very good example of that.

“We have a very complicated definition of what a small business is so we differentiate from size to the number of employees.”

Small businesses also lack the much required training that is essential in ensuring efficient operation.

It’s complicated to access government assistance in both training and funding

“Small businesses are caught up in day to day operations of their businesses making it difficult for them to take time out to go through application procedures as to access the training,” Endress posited.

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He postulated that growth friendly policies were critical as they enabled economies to grow and lift people out of poverty.

Endress also noted that good governance was critical in bettering the economy.

Ghana is the only country in Africa that has improved in its governance scores as it had moved to a positive score in 2012 that it didn’t have in 1996. 

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