Cutting red tape for SMEs one of the keys to growing economy, says Old Mutual CEO

South Africa needs more policy certainty, reform, and 'gutsy' decisions from a political perspective, writes Old Mutual CEO Iain Williamson in a piece published by IOL.

In conversation with Stephen Grootes, Williamson says his comments were meant to be an encouragement rather than a criticism.

The Old Mutual CEO notes that a lot of good things are happening, with confidence probably the highest it's been in a decade 'from the perspective of a forward-looking view on growth prospects'.

Having said that, Williamson singles out two areas where the GNU needs to act decisively.

He highlights how important it is for government to implement policy that will cut red tape for SMEs.

"I think that is the growth engine of the economy, and at the moment it's just far too difficult for a small business owner to get started, to get licensed... Even streetside traders need licenses in the informal sector, and our informal sector is very small by international standards."

Iain Williamson, CEO - Old Mutual

South Africa also needs those 'gutsy' decisions when it comes to policy certainty on 'big ticket' things which investors might be keen to put capital behind, he says. 

This is necessary, Williamson writes, if we're to achieve the much-needed 4-5% growth required to begin elevating our economic prospects from current forecasts.

"What I'm really referring to is the delta between the prospect of 1.5-2% growth rate which is what we're looking at right now, and getting the growth rate to a 4 or 5% number which is where we need the economy to grow in order to create the jobs we need to sustain our population."

Iain Williamson, CEO - Old Mutual

Scroll to the audio player to listen to the interview, and click here to read Williamson's article