summary

• • Create a harmonized, predictable, and socially responsive licensing environment.
  • Standardize policies across municipalities and provinces.
  • Promote economic inclusion, transformation, and empowerment of MSMEs and historically disadvantaged groups.
  • Provide clear guidelines for licensing foreign nationals and reserve certain sectors for South African citizens.

• • Policy Action Plan: Develop a three-year iterative plan for implementation, with intergovernmental coordination structures.
  • Governance and Monitoring: Harmonize national, provincial, and municipal licensing systems to ensure consistency and efficiency.
  • Preferential Licensing: Empower MSMEs and disadvantaged groups through targeted measures and reserved sectors.
  • Economic Shocks and Disasters: Introduce flexible licensing measures during crises to support businesses.
  • Capacity Building: Strengthen training and professional development for licensing officials to ensure consistent enforcement.
  • Digital Transformation: Leverage technology to streamline licensing processes, reduce administrative burdens, and improve efficiency.
  • Knowledge Management: Establish frameworks for data collection, research, and evidence-based policymaking.

• • The policy draws lessons from international best practices, such as centralizing licensing systems and leveraging digital platforms.
  • It aligns with South Africa’s Constitution, National Development Plan (NDP), and other legislative frameworks to reduce red tape and promote economic growth.

• • The Department of Small Business Development (DSBD) will lead the development and implementation of the NBLP and its Policy Action Plan.
  • The policy emphasizes intergovernmental coordination, stakeholder engagement, and ongoing monitoring and evaluation.

The National Business Licensing Policy (NBLP) outlines seven key areas of intervention to improve the business licensing framework in South Africa:

1. 1. Development of NBLP Policy Action Plan:
      • Establish national and provincial coordination structures to develop and implement a three-year iterative Policy Action Plan. ​
      • Ensure intergovernmental coherence, uniform procedures, and sustainable business growth. ​
      • Regularly review and adapt the Policy Action Plan to address challenges and promote uniform approaches. ​
   2. Business Licensing Governance, Intergovernmental Support, and Monitoring:
      • Harmonize national, provincial, and municipal licensing systems to ensure synergy and alignment. ​
      • Support and monitor the implementation of the NBLP across all spheres of government. ​
      • Review and realign provincial licensing requirements, municipal by-laws, and licensing legislation. ​
   3. Preferential Business Licensing:
      • Promote economic inclusion by empowering MSMEs and historically disadvantaged groups. ​
      • Identify local industries where these groups can benefit from preferential licensing. ​
      • Reserve certain business sectors for South African citizens or entities owned by South African citizens. ​
   4. Mitigating Economic Shocks and Disasters:
      • Introduce flexible licensing measures during crises, such as temporary fee reductions, grace periods, and streamlined processes. ​
      • Provide support and education to businesses during economic shocks or disasters. ​
      • Coordinate responses with social partners and public sector entities.
   5. Strengthening the Capacity of the Licensing System:
      • Assess and improve training programs for licensing officials to ensure consistent enforcement and professional development. ​
      • Collaborate with industry partners and educational institutions to enhance training standards. ​
      • Promote awareness campaigns to improve understanding of licensing regulations. ​
   6. Leveraging Digital Technologies:
      • Design integrated systems for online applications, renewals, status tracking, fee payments, and real-time communication. ​
      • Promote data sharing and integration of existing databases to ensure consistency and accuracy. ​
      • Support licensing authorities in adopting digital solutions through training and awareness programs. ​
   7. Knowledge Management and Evaluation:
      • Develop frameworks for systematic data collection and research on business licensing. ​
      • Implement a monitoring and evaluation framework to measure the success of licensing policies and regulations. ​
      • Use reliable data to inform evidence-based policymaking and improve the ease of doing business. ​

These interventions aim to create a streamlined, inclusive, and efficient business licensing system that supports economic growth, reduces red tape, and empowers MSMEs and disadvantaged groups. ​

Digital technologies play a crucial role in the National Business Licensing Policy (NBLP) by streamlining and modernising the business licensing process. The policy emphasises leveraging technology to reduce administrative burdens, improve efficiency, and create a more business-friendly environment. ​ The key roles of digital technologies in the NBLP include:

1. 1. Streamlining Licensing Processes:
      • Enable online application submissions, renewals, status tracking, fee payments, and real-time communication between businesses and regulatory authorities. ​
      • Reduce the time and effort required for businesses to obtain licenses, making the process more efficient. ​
   2. Data Sharing and Integration:
      • Promote the integration of existing databases and systems across regulatory bodies to ensure data consistency and accuracy. ​
      • Facilitate better data collection, analysis, and monitoring for effective oversight and evidence-based decision-making. ​
   3. Reducing Administrative Burden:
      • Simplify licensing procedures and reduce red tape, particularly for Micro, Small, and Medium Enterprises (MSMEs). ​
      • Improve accessibility and transparency in licensing processes, ensuring businesses have clear visibility into requirements and application statuses. ​
   4. Supporting Licensing Authorities:
      • Provide frameworks for licensing authorities to adopt digital solutions, including training, awareness programs, and collaboration. ​
      • Encourage the use of e-government services to improve service delivery and accessibility. ​
   5. Encouraging Entrepreneurship and Economic Growth:
      • Create a more efficient and business-friendly licensing environment that reduces barriers to entry. ​
      • Support innovation and investment by fostering a predictable and streamlined regulatory framework. ​

By prioritising the use of digital technologies, the NBLP aims to modernise South Africa’s business licensing system, making it more accessible, transparent, and conducive to economic growth. ​

Preferential Business Licensing in the National Business Licensing Policy (NBLP) refers to measures aimed at promoting economic inclusion and empowering historically disadvantaged groups, particularly Micro, Small, and Medium Enterprises (MSMEs) and previously disadvantaged communities.

The goal is to increase their participation in the economy and reduce barriers to entry for these groups. ​

Key Features of Preferential Business Licensing:

1. 1. Targeted Empowerment:
      • Implement measures to empower disadvantaged groups, such as those identified under South Africa’s transformation and redress frameworks (e.g., Broad-Based Black Economic Empowerment Act). ​
      • Promote trading opportunities in disadvantaged areas, such as informal settlements. ​
   2. Local Industry Support:
      • Identify industries where MSMEs and disadvantaged communities can benefit from preferential licensing. ​
      • Provide targeted support to these groups to help them thrive in local economies. ​
   3. Reserved Business Sectors:
      • Designate specific business activities or sectors where licenses may only be granted to South African citizens or entities wholly owned by South African citizens. ​
   4. Anticipated Outcomes:
      • Economic Inclusion: Increased opportunities for MSMEs and disadvantaged groups to participate in the economy. ​
      • Reduced Barriers: Simplified licensing processes for targeted groups to minimize entry barriers. ​
      • Support for Transformation: Alignment with the National Development Plan (NDP) principles to foster inclusion and empowerment. ​

In summary, Preferential Business Licensing is a strategic intervention to ensure equitable access to economic opportunities, drive transformation, and support the growth of MSMEs and historically disadvantaged groups. ​