Condition of economy makes it difficult to do business in SA

Economist Dawie Roodt said that corruption, a lack of business support from the government and a heavy tax burden has made business conditions in the country untenable.

Roodt told Daily Investor that the government is a major obstacle in accelerating economic growth. He said that state-owned enterprises have failed to provide support to local and small businesses.

Roodt added that the corruption and incompetence of the government added to the problems of a government that is supposed to support local businesses.

Small businesses choked by red tape

Roodt pointed out that the country’s legislative environment is burdensome to small businesses.Research from Sabinet has shown that South Africa’s regulatory environment has increased. Roodt observed that businesses in the country face failure from the government and public infrastructure and difficult compliance environments.

Roodt also remarked that small businesses cannot weather economic uncertainty. He added that while larger businesses have resources to protect their businesses from Eskom or Rand Water failures, for example, small businesses are not so lucky. Small businesses, he said, do not have the pockets to afford security or alternative energy.

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Johannesburg informal traders open up after protest

Similarly, Briefly News reported that informal traders in Johannesburg returned to their operations after a recent anti-illegal immigration march forced them to close. The march took place in April 2026, and one informal trader opened up about how she obtained citizenship legally.

She also complained that informal traders would suffer if Somalians left the country.

Source: Briefly News