Government’s new measures for spaza shop registration amid protests

A group of Soweto residents gather outside the Jabulani Civic Centre on Tuesday to prevent foreign shop owners from registering their businesses. Picture: Timothy Bernard / Independent Newspapers

A group of Soweto residents gather outside the Jabulani Civic Centre on Tuesday to prevent foreign shop owners from registering their businesses. Picture: Timothy Bernard / Independent Newspapers

Published Nov 20, 2024

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Gauteng Finance MEC Lebogang Maile on Tuesday held a media briefing aimed at informing spaza shop owners about efforts to help them re-register their outlets.

This comes in the wake of clashes in Soweto, where community members and Operation Dudula protested against the registration of businesses for foreign nationals, leading to chaos at the Jabulani Civic Centre on Monday and Tuesday.

During the disturbances, residents expressed their anger, demanding that what they termed “illegal foreigners” leave the area.

Armed with placards, they protested against the registration of foreign-owned shops, causing services at the civic centre to be suspended.

This unrest coincided with Maile’s briefing, which was intended to update spaza shop owners on the government’s plans to assist them in complying with licensing regulations.

The backdrop to this situation is a 21-day deadline set by President Cyril Ramaphosa for spaza shop owners nationwide to adhere to licensing regulations or face permanent closure. This directive follows a series of serious food-borne illnesses in South Africa, raising significant concerns about food safety and regulatory compliance.

Maile outlined the stringent requirements for spaza shop owners seeking successful registration. These include submitting a properly filled application form with personal and business details, a certified copy of a South African identity document, proof of residence, and business registration with the Companies and Intellectual Property Commission (CIPC).

Gauteng Finance MEC Lebogang Maile outlined the stringent requirements for spaza shop owners seeking successful registration. Picture: Timothy Bernard / Independent Newspapers

Additionally, foreign nationals must provide valid documentation from the Department of Home Affairs authorising them to operate businesses in South Africa, complicating the already tense atmosphere in Soweto.

In a supportive yet firm statement, Maile specified that foreign nationals intending to apply for a business visa must demonstrate a significant financial commitment.

“The eligibility for a business visa, as per South African law, is that a foreign national must invest a prescribed amount of R5 million into an existing business or provide a business plan with evidence of that capital contribution,” he explained.

The government’s stance on this issue was echoed by Stella Ndabeni Abrahams, Minister of Small Business Development, who highlighted the responsibilities of landlords leasing properties to undocumented immigrants.

“Landlords should take the blame for leasing out their properties to undocumented and illegal immigrants. Even manufacturers are going to be checked as to who they have sold to, as they are putting people’s lives at risk,” she stated.

This joint operation, she added, aimed to consider the broader implications, including those assisting foreign nationals in the business sector.

The Star