Standard Bank CEO calls on government to make it easier to do business in South Africa

Standard Bank CEO Sim Tshabalala said much of South Africa’s regulatory framework is no longer aligned with the country’s social needs and economic realities. 

Apart from harming South Africa’s competitiveness, poor regulation creates opportunities for illegitimate and inefficient rent-seeking. 

This, in turn, negatively impacts economic growth and development, while also preventing real transformation and empowerment. 

Tshabalala outlined these harmful impacts of poor regulation in South Africa in his CEO’s report for the 2025 financial year, presented in Standard Bank’s annual report. 

The CEO noted that South Africa’s economic growth rate doubled in 2025 to 1.2%, with improved business confidence on the back of the formation of the Government of National Unity (GNU). 

This was coupled with the acceleration of structural reforms, which Standard Bank saw as offering practical benefits in its growing corporate and business banking loan book. 

South Africa’s state finances also improved markedly in 2025, with S&P Global upgrading the country’s sovereign debt in November, recognising improving economic and fiscal conditions. 

“Despite these improvements, South Africa’s GDP growth rate is not nearly fast enough to reduce unemployment or raise per capita income,” Tshabalala said. 

He said this has coincided with Nigeria’s GDP growth rate also falling despite its growing population, ensuring Africa’s largest economies have relatively stagnated in recent years. 

This led The Economist to call South Africa and Nigeria ‘Africa’s sleeping giants’ in its 29 January 2026 edition. Importantly, the publication pointed out that these giants appear to be waking up. 

Tshabalala explained that apart from the confidence inspired by the GNU and accelerated structural reforms, more must be done to improve South Africa’s regulatory environment. 

“Much of South Africa’s regulatory framework is no longer well aligned with the country’s social needs and economic realities,” Tshabalala said. 

“A comprehensive review and modernisation of the regulatory system is urgently required, as the authorities recognise.” 

Tshabalala urged any such review to focus on enhancing South Africa’s international competitiveness and on making it easier to start and run small and medium enterprises. 

Government must get out of the way 

Tshabalala has previously pointed out that the government needs to get out of the way to allow businesses to execute and grow. 

The CEO of Africa’s largest bank by assets said South Africa provides a good example of how business and the government can work together to resolve key issues and boost economic growth. 

However, Tshabalala said that once the government sets up the appropriate legal and regulatory frameworks, it must get out of the way to allow businesses to execute. 

These comments were made by Tshabalala on the sidelines of the World Economic Forum in 2025, when South Africa was beginning to see the fruits of enhanced public-private partnerships. 

“South Africa provides an incredible example of how government and business ought to work together in a way that is properly governed and structured,” Tshabalala said.

This was in reference to the partnership between Business for South Africa and the government, which focuses on the energy crisis, logistical inefficiencies and crime and corruption. 

The partnership has also added a focus on municipal mismanagement and the ongoing water crisis in parts of the country. 

“We are working hammer and tongs in partnership to try to get GDP growth to above 3%, and that is completely possible,” Tshabalala said.

He explained that the partnership was built on the understanding that government and business should focus on what they can do best in their respective spheres. 

“Respecting that business is not Caesar and that Caesar must perform the role of Caesar is important,” he said. 

“They must set up the legal and regulatory environment, but then frankly get out of the way so that business can execute and do what needs to be done.”

Tshabalala’s views were echoed by Jonathan Oppenheimer, who is heir apparent to the head of the family that built Anglo American and De Beers. 

Oppenheimer, in late 2025, urged the South African government to get out of the way of entrepreneurs, with compliance and high operating costs threatening their survival. 

“The most powerful thing the government could do is get out of the way, particularly in the entrepreneurial space,” Oppenheimer said. 

“I’m not advocating a completely anarchic libertarian approach by any measure. But, the government needs to be very deliberate in understanding that time for small businesses is incredibly precious.”