Getting Real About Red Tape: Competition Commission’s Review Is a Chance to Boost SA Business

Why It Matters

Reducing unnecessary regulatory barriers can boost investor confidence, accelerate SME expansion, and improve South Africa’s global competitiveness.

Key Takeaways

• IMF flags South Africa as highly restrictive business environment.
• Competition Commission launches regulatory review to cut red tape for SMEs.
• Review targets licensing, procurement, sector policies, and market concentration.
• Merger control thresholds raised, speeding approvals and lowering compliance costs.
• Submissions due 5 June 2026 via [e-mail].

Pulse Analysis

The latest International Monetary Fund assessment places South Africa near the bottom of emerging‑market rankings for ease of doing business, highlighting protracted licensing, permitting and procurement procedures as major deterrents to investment. Coupled with the Kearney 2026 Foreign Direct Investment Confidence Index, which ranks regulatory efficiency as the second‑most critical factor for investors, the findings underscore a systemic issue: red tape inflates costs, delays market entry, and erodes confidence in the country’s economic outlook.

In response, the Competition Commission has initiated a comprehensive regulatory review to identify and dismantle rules that act as barriers to competition, especially for small and historically disadvantaged firms. The project will evaluate sector‑specific policies, licensing regimes, procurement practices, and the impact of market concentration and vertical integration. Early successes, such as raising merger‑control thresholds and committing to faster approval timelines, have already demonstrated that targeted reforms can reduce compliance burdens while preserving essential oversight. This evidence‑based approach signals a shift from blanket deregulation toward smarter, outcome‑focused rulemaking.

The commission’s call for submissions, open until 5 June 2026, invites businesses, regulators and civil society to pinpoint concrete regulatory obstacles and propose viable alternatives. By aggregating frontline insights, the review aims to produce a phased reform agenda that delivers quick wins and longer‑term legislative changes. Effective implementation could unlock new market entrants, stimulate job creation, and enhance South Africa’s attractiveness to both domestic and foreign investors, positioning the economy for more inclusive and sustainable growth.