Bill to cut red tape for business to be finalised by financial year-end

The department of trade, industry and competition (DTIC) plans to finalise a comprehensive omnibus bill by the end of this financial year aimed at reducing regulatory hurdles and enhancing the ease of doing business. 

The excessive red tape that characterises SA’s legislative system has acted as a constraint on investment and has been targeted by Operation Vulindlela, a joint initiative of the presidency and National Treasury.

“The department aims to play a critical role in unlocking bottlenecks and reducing red tape for businesses in SA,” director-general Simphiwe Hamilton told MPs in a presentation to the trade, industry and competition portfolio committee on Tuesday. 

A range of acts is being considered for possible amendment under the omnibus bill including the Companies Act, Infrastructure Development Act, Drug Trafficking Act, Legal Metrology Act, Land Alienation Act, Liquor Act, laws related to the commercialisation of cannabis and intellectual property laws. Hamilton said the list was not final.

“The department has been having extensive discussions and strategic deliberations on priorities of the DTIC to solve major constraints in the economy with a focus on the high impact on the investor or user and the economy,” Hamilton said without providing details of what specifically was envisaged. 

In addition seven regulations will be gazetted to address regulatory constraints to the economy.

The National Building Regulations and Building Standards Act, which predates the adoption of the constitution and prescribes building standards and uniformity for the erection of buildings under the jurisdiction of municipalities, will also be amended as it is outdated and certain sections have been challenged in court.

The Constitutional Court has declared several provisions of the act unconstitutional insofar as they undermine the constitutionally enshrined powers of municipalities. The intention is for an amendment bill to be submitted to cabinet for public comment in August. 

Also on the department’s agenda the repeal the outdated Patents Act and its accompanying regulations to bring SA’s outdated patent regime in line with international best practice, including integrating the World Trade Organisation’s (WTO) Trade Related Aspects of Intellectual Property Rights (Trips) flexibilities.  

“It will introduce substantive search and examination of patent applications, which is a significant departure from the current depository system and will contribute to affordable and equitable access to medicines, among others,” a DTIC official said. 

“It will introduce reforms to provide for broader inclusive participation in the patent system, ensure protection of intellectual property and promote innovation.” 

Two public workshops are planned on the proposed amendments for August and/or September in conjunction with the World Intellectual Property Organisation (Wipo). After this, the bill will be released for public comment.

“The Patents Bill introduces ‘utility model patents’. This utility model system provides more accessible protection for local incremental innovation that is common among small businesses in SA. The introduction of a utility model patents regime requires an amendment to the Designs Act as certain aspects of the current Designs Act will be rendered superfluous by utility models.” 

The model will offer easier and more accessible intellectual property protection for small businesses by allowing them to safeguard minor innovations with a simpler and less costly process compared to traditional patents. 

The Trade Marks Act will also be amended to accede and domesticate the Madrid Protocol concerning the international registration of trade marks adopted in 1989. The protocol ensures trade mark protection via a single international registration and promotes the efficient protection of trade marks across jurisdictions. The department expects to submit the amendment to cabinet in September. 

Also on the legislative agenda is an amendment to the International Trade Administration Act to increase the effectiveness of provisions to deal with fraudulent activities and illegal imports and exports.  

“Amendments are also being made to clarify the statutory underpinnings of International Trade Administration Commission’s tariff and trade remedy investigations and to streamline the process in line with international best practice.  

“The amendments will also ensure efficient implementation of trade defence instruments in view of the current changes in the global landscape. It is expected that the draft amendment bill will be published for initial public comments in August 2025,” MPs were told. 

ensorl@businesslive.co.za