It should be compulsory for any new legislation, regulations, or policies to be subjected to neutral and high-quality impact assessments.
Large-scale deregulation, said the FMF, will enhance the capacity of the private sector to create jobs, foster innovation, and drive economic development.
Excessive regulation, especially in South Africa’s labour, education, and healthcare sectors hampers economic growth and impedes social progress.
While the minister acknowledged the importance of macroeconomic stability, the fact remains that the government is still too large and South African taxpayers are still footing the bill.
The medium-term budget policy statement and the February 2025 budget are two of the last ‘easy’ opportunities the GNU will have to announce a reform agenda.
Our recommendations to the GNU focus on eliminating restrictive tariffs, reducing unnecessary regulations, and opening financial markets.
If the GNU is to succeed, South Africa requires a fundamental change in policy direction towards economic freedom.
“The fastest way to grow the economy is to shrink the state,” Ansara said. “This requires deregulation of commerce, liberalisation of labour markets and a reduction of the size and scope of government.”
A significant part of South Africa’s price inflation can be attributed to a variety of administrative and legislative initiatives which depress supply in the economy.
The FMF calls on the GNU to cut job-killing regulations and lower the barriers to entry into South Africa’s labour market.
