Civil rights organisation Free SA will tomorrow formally submit its opposition to the proposed Business Licensing Bill, 2025, calling for the immediate withdrawal of the legislation in its current form.
In its upcoming submission, which has to date been signed by more than 280 members of the public, to the Department of Small Business Development, Free SA warns that the Bill threatens to entrench bureaucracy, concentrate unconstitutional power in the hands of national officials, and devastate small and informal businesses already grappling with South Africa’s economic crisis.
“This Bill is not a plan for economic inclusion. It’s a blueprint for regulatory suffocation,” said Reuben Coetzer, Spokesperson of Free SA. “Instead of supporting small enterprises and informal traders, the very engines of job creation, the Bill adds red tape, creates uncertainty, and hands unelected officials sweeping discretionary powers.”
Free SA argues that the Bill is structurally flawed and cannot be repaired through minor amendment. Among the key concerns outlined in the submission are:
- Overregulation and duplication of existing compliance processes, creating new administrative barriers for entrepreneurs;
- Unconstitutional centralisation of power, undermining municipal autonomy and violating the principle of cooperative governance;
- Intrusive and discretionary enforcement powers, including warrantless entry and confiscation of goods, without judicial oversight;
- Harm to the informal economy, where millions depend on survivalist trading already constrained by complex legal requirements.
“With over 11 million South Africans unemployed and small businesses closing every day, government should be prioritising economic freedom and simplification, not top-down control,” added Coetzer. “South Africa needs the exact opposite of what this Bill proposes: we need decentralisation, de-bureaucratisation, and digital reform to enable opportunity.”
Free SA’s submission calls on the Minister of Small Business Development to:
- Withdraw the Bill in full, based on its constitutional, practical, and economic flaws;
- Begin any new legislative process with a first-principles consultation focused narrowly on demonstrably high-risk sectors;
- Ensure that regulation remains risk-based, proportionate, and minimal;
- Restore municipal and provincial discretion over business activity, in line with the Constitution;
“South Africa’s economic recovery depends on the ability of its people to trade freely, lawfully, and with dignity,” Coetzer concluded. “Free SA stands ready to support the creation of a truly enabling regulatory environment, one that respects constitutional principles and gives entrepreneurs the freedom to build a better future.”
The submission will be sent to the Department on 21 November 2025.
