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City of Cape Town pushed to make it easier for new businesses to be created

Marvin Charles|Published

The City is being pushed to speed up the rate at which new businesses are being set up to replace those that buckled due to lockdown restrictions. Picture: Tracey Adams/African News Agency (ANA) The City is being pushed to speed up the rate at which new businesses are being set up to replace those that buckled due to lockdown restrictions. Picture: Tracey Adams/African News Agency (ANA)

Cape Town - The City is being pushed to speed up the rate at which new businesses are being set up to replace those that buckled due to lockdown restrictions.

A group of councillors has proposed various ways and legislation to make it easier for the City to help facilitate the establishment of new businesses.

On Monday, a motion was tabled at subcouncil 16, which consists of the City Bowl and surrounding areas, by councillor Dave Bryant, who wants a temporary by-law, policy or similar legislation to be prioritised urgently to cut red tape and processes for improved business operations.

“In terms of operation of businesses, there are numerous legislative loopholes that one has to jump through to be allowed to operate and the limitations arising from the national government restrictions have made it even more difficult.

"Businesses are limited in terms of their trading areas and we would like to find ways to allow them to trade more freely and make use of public space," he said.

He said the ban on alcohol, along with the curfew, was hurting many businesses, and all must be done to assist businesses.

“Other proposals submitted in the motion include that public spaces such as squares, pavements and unused parking spaces in the Cape Town CBD and surrounds should be made more accessible for business use and relevant regulations relaxed where possible to allow for these activities to take place.

"The City must begin engaging immediately with the hospitality and retail sectors in the Cape Town CBD so as to establish the key challenges

and the City must begin planning for more public events such as the Greenmarket Square rejuvenation concert, so that they can be rolled out as soon as legislation allows.

“The motion was fully endorsed by members of subcouncil 16 and the contents have been discussed with the other parties mentioned, including the Central Improvement Districts, Wesgro and Open Streets. We simply cannot wait around while the lockdown crisis continues to plunge our CBD businesses further into the abyss.

"We must rise above some of the ham-fisted decision-making and find inventive ways to keep our CBD economy afloat,” said Bryant.

Cape Chamber of Commerce president Geoff Jacobs said: “This is something the chamber has been advocating for years. The regulatory framework for businesses, especially small businesses, is too complex and rigid, and the cost of compliance too high. Any efforts to cut down on red tape are to be welcomed, but not as temporary measures, but permanently if we are to see businesses recover post-Covid-19.”

On almost a daily basis, many well-known establishments and businesses are being forced to close their doors. Last week, one of Cape Town’s popular restaurants, Clarke's, announced that it would be closing its doors temporarily. It was the latest restaurant to close in the CBD; among other restaurants that have closed in the CBD are The Kitchen, and Brownies and Downies.

Cape Town Central City Improvement District chief executive Tasso Evangelinos said: “Businesses need to take stock of the situation, adapt to circumstances and become innovative in their approach. Cape Town is known for its creative entrepreneurs who are resilient. I believe they will find a way to survive the economic downturn caused by Covid-19 and rebuild their businesses.”

Mayco member for economic opportunities and asset management James Vos said: "The City works hard to ensure the right conditions exist to allow small businesses to grow and thrive.

"The enterprise and investment department runs an ‘Ease of Doing Business’ programme which, together with other City departments, focuses exclusively on the regulatory reform needed to cut red tape, reduce the cost of doing business and enable business growth."

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Cape Argus