South African farmers and small business owners are being pushed to the brink by an outdated and burdensome regulatory system, warns Dr Tobias Doyer, CEO of the Grain SA Group. In a hard-hitting opinion piece shared on LinkedIn, he calls for urgent regulatory reform to safeguard the very enterprises driving South Africa’s economy.
Doyer expressed measured optimism about a possible shift in government’s regulatory stance, following minister of agriculture John Steenhuisen’s decision to revoke the designation of Leaf Services – an unpopular and costly grain testing contractor.
“I was very encouraged by an apparent change in approach towards regulations by government when minister John Steenhuisen revoked the designation of Leaf Services,” said Doyer.
However, that optimism is tempered by continued frustration over what he describes as a regulatory environment that is stifling growth and exhausting entrepreneurs and farmers alike. “I know I shouldn’t write when I’m frustrated. But sometimes things simply need to be said,” he wrote.
Farmers are also SMEs
Drawing from personal experience, Doyer reflects on his early years on the family farm, where he had to juggle both agricultural duties and administrative red tape. “The regulatory burden seems to be increasing exponentially. It’s not just farming. It’s full-spectrum entrepreneurship,” he said.
Today, he argues, farmers wear multiple hats – as employers, mechanics, risk managers, and financiers – but without the institutional support enjoyed by corporates.
“Every one of those tasks had a team behind it… But the farmer? Or any SME owner? They carry all of that alone – or subcontract every sliver of it, at a cost they can barely afford.”
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Real-world consequences
Doyer paints a vivid picture of the daily pressures faced by South African producers: delayed VAT refunds, audited diesel rebates, and the constant pull between compliance and critical operations.
“This isn’t just a farming issue. It’s an SME crisis. And it’s happening everywhere,” he warned.
These challenges have direct economic consequences. Citing data from SEDA, the World Bank, and the ILO, Doyer notes that SMEs account for nearly 40% of South Africa’s GDP and 60% of private sector employment.
While large companies can absorb the cost of compliance via in-house teams and legal experts, the same rules overwhelm smaller enterprises, Doyer argues. “The same regulatory rules are ‘copy-pasted’ for small and medium businesses, small farms, and township start-ups. And it breaks them.”
According to Doyer, it’s not a question of willingness to comply – but a mismatch between design and reality.
“The system was built for companies with back offices, not back roads,” he said. “If you need to pay someone to manage your diesel claims, VAT, UIF, skills plans, HR, tax, BEE, and labour compliance… you’re not building a business anymore. You’re just paying to feed the bureaucracy.”
A smarter path forward
Doyer is not asking for special treatment, but for smart, scalable and inclusive regulation. He cites New Zealand as an example of a country that has successfully introduced dedicated policies to reduce red tape for small businesses.
He proposes practical reforms, including:
- Scaled compliance and simplified processes tailored to small enterprises;
- Faster VAT and diesel refunds for low-risk, compliant taxpayers;
- Risk-based audit frameworks to avoid blanket penalties;
- Access to digital tools that streamline rather than complicate compliance;
- Real involvement of SME voices in the co-design – not just consultation – of regulations.
At the heart of his message is a call to reframe how government and society view SMEs and farmers “We must start treating SMEs – especially our farmers – not as outliers or tax risks, but as the engine of economic recovery.”
He concluded with a stark warning: if South Africa is serious about transformation, job creation, and rural development, then fixing the regulatory system must be a top priority. He urged policymakers to rethink how SMEs are regulated and taxed, especially in agriculture, warning that the current system is pushing entrepreneurs out of business.
“Let’s build a system that recognises the reality of a single entrepreneur doing the work of ten people. Because that’s who’s holding up the economy.”
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