Chairperson of the SADC Committee of Ministers of Finance and Investment, Professor Mthuli Ncube, has issued a clarion call for governments across the region to urgently slash rising regulatory costs, which he says are stifling business growth and discouraging compliance.
Speaking during the recently held Committee of SADC Ministers of Finance and Investment and the Peer Review Panel, Prof. Ncube warned that the ballooning cost of regulation was making it increasingly difficult for businesses to survive.
“What we are noticing across our region is that regulatory costs are so high and are increasing the cost of doing business,” he said.
He noted that even though taxes often receive the blame from the public, it is actually agency-imposed regulatory fees that are burdening companies.
“These are not taxes. These are agency fees for over-regulation, in my view,” said Ncube.
Citing internal analysis without naming the specific sector, he revealed that full compliance with all regulatory requirements would render most businesses unviable.
“If the players were to comply with all our regulatory costs, none of them would be in business,” he stated. “They are only in business because they are not complying with regulatory requirements.”
Prof. Ncube’s remarks come as the region grapples with the dual challenge of improving investment attractiveness while preserving regulatory oversight.
He urged regional governments to act swiftly in reviewing and rationalizing regulatory frameworks to create an enabling environment for private sector growth and regional economic competitiveness.
