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A reply to a DA parliamentary question reveals that the Minister of Trade and Industry, Rob Davies, is preparing to bring two job-destroying Bills before Parliament before the end of this financial year. The Department has revealed that it will introduce the ironically named Protection and Promotion of Investment Bill, and the Licensing of Businesses Bill.

The DA will lead the fight in Parliament to ensure that these Bills do not further contribute to unemployment in South Africa. We will propose comprehensive amendments to the problematic clauses in the Bills. In the meantime, I have written to Minister Davies to request the regulatory impact assessments for these Bills.

Both bills present significant threats to economic growth, investment, and job creation. The investment community has expressed serious concern about the government's intentions with certain problematic clauses in the Investment Bill. And the Business Licensing Bill will add even more unnecessary red tape for businesses.

Both Bills were released briefly last year, but the Licensing of Businesses Bill (the so-called 'Red Tape' Bill) was soon withdrawn after unanimous public objections. The Investment Bill has not been seen or heard of since January this year, when the public comment period closed.  

In the version released last year the Investment Bill proposed to:

• Reduce compensation to foreign investors in the event of expropriation from market value to an ill-defined "fair and equitable" value;
• Remove investors' right of recourse to international arbitration;
• Give unclear "custodianship" rights to the state which would not constitute expropriation, and which may not require compensation.

In its first iteration, the Business Licencing Bill:

• Required every business in South Africa, irrespective of size, to apply for a license to operate from the local municipality in which they are situated;
• Required every local municipality to maintain a comprehensive database of information on every business that it licenses; and
• Imparted extensive powers of search and seizure, and issuing of fines to police officers, traffic officers and a host of other officers as license inspectors. The penalty for operating a business without a valid license could be up to 10 years in prison.

This is just more unnecessary red tape for businesses, and is duplications. Government already has a database of all businesses in the form of the CIPC register.
 
Given that the NDP directs government to simplify the regulatory burden faced by small businesses and entrepreneurs, and government's stated commitment to boost small and medium enterprises, this Bill runs counter to what should be government’s core objective.
 
The Promotion and Protection of Investment Bill undermines private property protections and will further weaken investor confidence in South Africa's economy.
 
These two draft Bills will make it harder for businesses to operate, will undermine investor confidence, and will ultimately destroy jobs.