South Africa's Competition Commission has initiated a regulatory review project to identify rules hindering economic growth. The initiative targets barriers to competition, particularly for SMEs, with submissions due by 5 June 2026. Principal economist Yongama Njisane emphasises the need for smarter regulation to boost investment and jobs.
The Competition Commission’s regulatory review project seeks to assess which regulations remain necessary and which impede the economy. It focuses on lowering compliance costs, reducing delays and opening markets to more participants, especially SMEs. Yongama Njisane, principal economist at the commission, writes that excessive red tape often blocks new entrants through slow licensing and permitting processes.
Njisane cites the Kearney 2026 Foreign Direct Investment Confidence Index, which ranks regulatory efficiency as the second-most important factor for investors in emerging markets. The International Monetary Fund has described South Africa’s business environment as one of the most restrictive among peers, due to lengthy approvals and complex licensing. These issues, Njisane notes, disproportionately burden smaller firms while larger ones cope better.
President Cyril Ramaphosa highlighted reducing red tape in his 2026 State of the Nation Address, aligning with the commission’s efforts. The review will examine sector policies, licensing frameworks and procurement rules, considering market concentration and participation by historically disadvantaged persons.
The commission invites submissions from businesses, regulators and agencies to regulation@compcom.co.za by 5 June 2026. It plans to publish recommendations, starting with quick reforms like those in merger control, which already improved turnaround times.
