Progress on spaza shop registrations, outreach programme and spaza shop ownership by-law
In heeding the call to register spaza shops within 21 days, the Gauteng Provincial Government identified and established registration centres across all five regions. A total of eighty-five (85) registration centres were established, with their locations and required documentation for registration communicated using various media platforms including social media, commercial media, community media as well as government communications platforms. Outreach programmes have also been put in place to accelerate registrations and information dissemination. All regions have initiated outreach programmes, with over 15 000 spaza shops reached by the programme.
The registration centres across the province open daily between 07h30 and 16h00. With a total of 372 dedicated personnel assisting with registrations, the province aims to register as many spaza shops as possible within 21 days. As of the 10th of December 2024, the number of spaza shops issued with registration forms stands at 13 616 , of which 1 916 (some of the applications are incomplete, missing critical supporting documents) have been returned. At present, 2 605 applications have been submitted by non-South African spaza shop owners based on data from the City of Tshwane, Ekurhuleni, West Rand District Municipality (comprising of Merafong, Rand West City and Mogale City local municipalities) and the Sedibeng District Municipality (comprising of Emfuleni, Midvaal and Lesedi local municipalities). The current engagement with township commercial property owners have helped improve numbers.
The registration process has been simplified to ensure that business owners are not consumed in red tape, while simultaneously ensuring that compliance is achieved. Additionally, three municipalities (City of Johannesburg, City of Tshwane and City of Ekurhuleni) have digitised their application process, while other municipalities are in various stages of the digitisation of the process. This is happening alongside the process of municipalities establishing by-laws on spaza shop ownership. Presently, municipalities are adopting the draft model standard by-law.
Progress on spaza shop compliance
As of the 8th of December 2024, there has not been a reconciled figure on the total number of compliant and non-compliant spaza shops. This is on account of incomplete documentation being provided by spaza shop owners. Most of the outstanding documents from applicants include unapproved internal floor layout plans, approved building plans, consent use as well as certificates of acceptance and fire safety. Business owners have been advised to acquire this documentation for further processing of their applications. Additionally, there are businesses operating from informal dwellings in areas that are not proclaimed. These must first await a directive from the Department of Human Settlements.
A total of 541 spaza shops have been closed for non-compliance. Non-compliant businesses include those without Companies and Intellectual Property Commission (CICP) registration which is a legal requirement for operating a business in South Africa. Other issues of non-compliance include a lack of certificates of acceptability or comment from Environmental Health and non-payment of operating licenses that are obtained from municipalities. Businesses operating from unsafe premises and within a hazardous environment have also been closed for non-compliance.
Rule of law
One of the challenges that have been encountered in the registration of spaza shops has been threats against officials assisting foreign nationals with applications. The Gauteng Provincial Government condemns any threats of violence against officials who are discharging their legal duties. It must be stated that the current legal regime allows for foreign nationals to operate businesses within South Africa provided that they comply with the laws of the country. This includes having documentation in the form of a valid business or work permit as well as a resident permit. The eligibility for a business visa, as per South African law, is that a foreign national must invest the prescribed amount of R5 million into an existing business or provide a business plan with evidence of R5 million capital contribution. However, foreign nationals may establish a business which is of national interest to South Africa, as stipulated in the Industrial Policy Action Plan, for which there is no minimum capital investment required.
The Gauteng Provincial Government understands the concerns that communities have in relation to spaza shops owned by foreign nationals, particularly considering the ongoing debate around the displacement of local-owned businesses in townships. However, it is critical that the rule of law is upheld, and that officials are allowed to process the applications and registrations of compliant businesses owned by foreign nationals. Emphasis is on compliance, and where there is none, the law demands action to be taken, including the closure of such businesses.
The Gauteng Provincial Government has sought assistance from the national Department of Home Affairs at all sites to address asylum, immigrant and refugee statuses of foreign nationals to eradicate the submission of false documentation for spaza shop registrations. As the use of false documentation is illegal and may result in prosecution, we implore applicants to desist from submitting such documentation. We further implore South African citizens to desist from submitting applications on behalf of undocumented and non-compliant foreign nationals and businesses as this undermines the safety of communities and the work being done to address a national emergency that has already claimed far too many children’s lives.
Conclusion
The Gauteng Provincial Government’s main objective is to register all businesses operating within the borders of the province. While the closure of businesses is not ideal, the safety of consumers is sacrosanct and takes precedence over everything else. Non-compliance poses a significant danger to communities as the quality and standards of goods and services cannot be assured, and it is the failure in these standards that are a direct cause of the poisoning crisis that the province has been confronted with. Economic growth must be sustainable and in direct proportionality to human development. Without safety regulations in place, the ethical dimensions that underpin human development are eroded, and with that, human rights undermined.
Gauteng Department of Economic Development
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