Background checks including citizenship status, written warning and cancellation of business licences are among the tough measures being taken to regulate the township economy. Picture: Jacques Naude/Independent Newspapers
Background checks including citizenship status, written warning and cancellation of business licences are among the tough measures being taken to regulate the township economy.
The measures were listed in a Standard Draft By-Law for Township Economies, gazetted at the weekend. This comes after a spate of deaths of children allegedly due to the sale of contaminated food sold at spaza shops.
The draft by-law will give municipalities powers to establish business zones, “creating spaces specifically tailored to retail, industrial, and mixed-use enterprises”.
“Any individual with a business licence may now conduct business within designated areas, subject to local quotas that ensure equitable opportunities for South African citizens and residents,” Co-operative Governance and
Traditional Affairs Minister Velenkosini Hlabisa said.
The law regulates designated business areas, registration and permitting of business activities, hygiene and waste removal, as well as prohibitions and restrictions, among others.
The by-law also includes a section on offences and penalties which states: “A person who fails to comply with a provision of this by-law is guilty of an offence and must be served with a written warning.
“On a subsequent transgression, an offender is to be served with a written notice, subject to an appeal. His or her business licence is immediately cancelled and that he or she will be barred from reapplying for a licence in any municipality for a period of five years after the subsequent transgression.”
“The new standard draft by-law introduces an efficient permit and registration system and mandates that all business activities align with public health and safety regulations,” the minister added.
“We are excited about this by-law as it is more than just a regulatory tool. It reflects our vision for township economies as key contributors to South Africa’s growth. Through inclusive, streamlined, and supportive governance, this initiative lays a foundation for sustainable economic activity.”
The department noted that municipal officials would assist applicants in the process, ensuring timely approvals and smooth operations for new and existing businesses.
South African National Civic Organisation’s (Sanco) Kwena Mangoato said the regulations must focus on the manufacturing sector and not only target street vendors who trade to survive.
“Those regulations should go deeper to the manufacturers and where they are manufacturing the food. Government must find a balance, to not have a bad effect on local vendors. Training must be provided and vendors must be given enough time to learn and comply,” said Mangoato.
He said street vendors felt they were being targeted, “even though spaza shops are not in compliance”.
Mangoato added that they hoped the regulation will help root out those who are not adhering to legitimate business practices.
GOOD party secretary-general Brett Herron said the new law was a step in the right direction.
“The Standard Draft By-Law for Township Economies has been in the works for some time and is therefore not a knee-jerk reaction to the recent poisoning incidents.
“Township residents will nonetheless draw comfort from provisions making it a crime for traders to buy goods from establishments that do not comply with regulatory prescripts, or to sell expired items,” he said.
He added that the provisions’ quotas restricting the proportion of foreign-owned businesses “must be carefully managed to protect the rights of legal immigrants and prevent xenophobic vigilantism”.
Cape Times
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