Structural policy reforms needed - OECD

Published Jul 24, 2017

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Cape Town - The  organisation for

Economic Co-operation and Development (OECD) on Monday released its

Economic Survey of South Africa, which identified priority areas for future

action.

The survey suggests that South

Africa should consider the following

structural policy reforms for it to meet its inclusive growth agenda: that the

country opens up key sectors including telecommunications, energy, transport

and services to more competition.

It further encourages the country to have a wider

development of apprenticeship and internship programs and streamline the labour

dispute system to increase flexibility and lower barriers to job

creation. 

Finance Minister Malusi Gigaba said on Monday that steps

have been taken to ease starting a business and the Department of Small

Business Development is currently addressing the red tape associated with

starting a small business through simplification of procedures

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“We agree with the observations made in the 2017 Economic

Survey that, among others, boosting entrepreneurship and growing small

businesses will contribute to creating jobs. The government is in the process

of finalising a complementary government fund aimed at financing Small, Medium

and Micro Enterprises (SMMEs) in the start-up phase, ” he said.

“We further agree with the observation that the quality of

the education system and lack of work experience contributes to gaps in

entrepreneurial skills and, in that regard, government policies will provide

more support for entrepreneurs and small businesses,” Gigaba said.

The OECD survey also found that the quality of South Africa's

education system and lack of work experience has contributed to gaps in

entrepreneurial skills and suggested there was scope to broaden the sources of

finance and ensure that government policies provide both financial and

non-financial support for small businesses.

BUSINESS REPORT ONLINE

 

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