
Why reforms are urgently needed to reduce SMEs from setting up shop offshore to secure VC
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GUEST – Adrian Dommisse - Startup Act Movement Steering Committee and is Director and Founder of Dommisse Attorneys Inc
Over the past 15 years South Africa has lost its attractiveness for foreign direct investment from international VCs largely due to onerous exchange control legislation that is urgently in need of an overhaul. Without foreign funding flowing into our local startup community, to help them grow their operations, we are stunting job creation – especially in the ICT sector - and reducing our SMEs’ ability to positively affect the tax base and, as a sector, meaningfully contribute to GDP. This is nothing but an own-goal.
Over the past 15 years South Africa has lost its attractiveness for foreign direct investment from international VCs largely due to onerous exchange control legislation that is urgently in need of an overhaul. Without foreign funding flowing into our local startup community, to help them grow their operations, we are stunting job creation – especially in the ICT sector - and reducing our SMEs’ ability to positively affect the tax base and, as a sector, meaningfully contribute to GDP. This is nothing but an own-goal.

