Billionaire businessman Christo Wiese said automatically approving building plans after three months if the municipality does not engage is an excellent way to cut red tape.<\/p>\n\n\n\n
Wiese suggested this during a question-and-answer session at the\u00a0BizNews Conference in Hermanus<\/a>.<\/p>\n\n\n\n He said red tape is causing tremendous damage to South Africa\u2019s business environment and the economy.<\/p>\n\n\n\n Starting a business in South Africa is far more cumbersome than in a country like Rwanda, where it takes only three days.<\/p>\n\n\n\n Wiese said reducing red tape and making it easy to start a business has made Rwanda an African success story.<\/p>\n\n\n\n In comparison, South Africa is steeped in bureaucratic processes, making it very difficult to start and run a business.<\/p>\n\n\n\n Wiese gave the example of his daughter waiting two and a half years to get planning permission to add a bedroom to her house in Cape Town.<\/p>\n\n\n\n Cape Town is considered a well-run municipality, so it illustrates the challenges with red tape in the country.<\/p>\n\n\n\n Wiese added that he is involved in a project close to his office that could be \u201can absolute jewel for Cape Town\u201d.<\/p>\n\n\n\n \u201cI am now in year three of trying to get the necessary approvals. However, I am still nowhere,\u201d he said.<\/p>\n\n\n\n \u201cArchitects tell me that billions of rands worth of building plans \u2013 many funded by foreign investors \u2013 are stuck in the pipeline.\u201d<\/p>\n\n\n\n He added that inefficient local and national government systems play into corrupt officials\u2019 hands.<\/p>\n\n\n\n \u201cCorruption exacerbates bureaucracy. It\u2019s a vicious cycle. More rules mean more chances for corruption. We must tackle both with nuance and positivity,\u201d he said.<\/p>\n\n\n\n He said the government should create a business-friendly environment and cut red tape to unlock investment in South Africa.<\/p>\n\n\n\n Wiese suggested a system in which a building plan is automatically approved after three months if the local authority has not approved it or engaged with the applicant within that time.<\/p>\n\n\n\n Such a system will compensate for poorly run local governments, which can cause unnecessary delays and hold back investments.<\/p>\n\n\n\n This article was first published by Daily Investor and reproduced with permission.\u00a0Read the original <\/strong>here<\/strong>.<\/a><\/em><\/p>\n\n\n\n
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