Small businesses across South Africa could face a bureaucratic nightmare if the draft Business Licensing Bill is passed, according to the Democratic Alliance. The party has started a national petition, claiming that the bill will bury entrepreneurs in red tape and make it even more difficult for South Africans to make a living.
This follows the government's proposed Business Licensing Bill, which aims to regulate a wide range of commercial activities but has faced strong opposition.
The draft legislation, published by the Department of Small Business Development, would require all businesses, from small startups to larger enterprises, to register with local municipalities and obtain licences valid for five years.
Inspectors would have broad powers to demand proof of a licence, issue fines, or confiscate goods, raising concerns about overreach and red tape. The bill is currently open for public comment.
Critics, including the Western Cape government, have slammed the Bill as vague, confusing, and unworkable. Western Cape Premier Alan Winde warned that it adds unnecessary bureaucracy, duplicates existing compliance requirements, and could slow down business start-ups, threatening small business growth and job creation.
“Legislation like this does nothing to support small business growth and job creation. The latest QLFS showed that 77,000 jobs were created in the WC - this is because the WCG is driving programmes that directly support business growth. We don’t want this compromised by cumbersome national legislation. We oppose this Bill and ask that it be withdrawn and reconsidered.”
The Centre for Development and Enterprise (CDE) also condemned the Bill, stating that it expands government control over almost every type of business and grants inspectors sweeping powers that could enable corruption.
“Instead of freeing up the economy, the government is proposing a licensing regime of extraordinary scope. It potentially expands government control over almost every type of business and creates wide-ranging powers for inspectors to search premises, seize goods and impose penalties. This is a licence for corruption, not a pathway to growth.”
The petition aims to highlight the bill’s potential to overburden municipalities, stifle informal trade, and slow down business start-ups. So far, it has gathered 2,637 signatures toward a target of 10,000, with the DA urging citizens to add their support and help protect small businesses and jobs across the country.
Henro Kruger, DA Spokesperson on Small Business Development, said that the party does not believe municipalities have the right to decide whether citizens may start a business or not.
“That is not the constitutional role, mandate, or power of a municipality, and it should never become one. The DA will oppose this strongly.”
He added that small businesses are already drowning in paperwork and compliance costs. Instead of fixing these challenges, the minister now wants every business to get yet another licence from municipalities that cannot even reliably keep the water running or maintain basic roads. Giving them the power to decide who can operate a business, he said, will only create chaos.
“We already have licences and checks where they are needed, such as food safety, occupational health, tax and labour requirements. Adding a new layer of bureaucracy won’t make South Africans safer; it will simply keep more people out of work,” he added.
Kruger further stated that people who want to start businesses and create jobs should not need to ask the government for permission first. They should be supported, not blocked.
He reiterated that the DA is calling for this Bill to be withdrawn without delay.
“If you run a small business, or if you’re simply worried about the impact this will have on job creation, your voice matters. By signing the petition, you help strengthen the fight to protect informal traders, street vendors, and every entrepreneur trying to keep the economy moving,” he said.
The Star
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