Govt. Simplifies Registration Process For Spaza Shops To Support Township Economies

The government introduced a new draft by-law for township economies that simplifies the permitting and registration process for spaza shops.

This initiative is designed to create a supportive environment for small businesses in townships, promoting economic inclusion, job creation and community empowerment, SA News reported.

The by-law was issued by Velenkosini Hlabisa, Minister of Cooperative Governance and Traditional Affairs (COGTA) on Nov. 7, aligned with the Local Government: Municipal Systems Act of 2000.

Last week, President Cyril Ramaphosa urged all spaza shops and food-handling businesses to register with their local municipalities. This is part of efforts to address the recurring foodborne illnesses that have caused the deaths of at least 22 children across the country.

The president explained that the goal of these measures is to remove dangerous pesticides from the streets, protect children from exposure to harmful substances, and prevent future outbreaks of foodborne diseases.

The new by-law reflects the department's commitment to transforming townships into active economic centers that offer lasting opportunities for residents.

The regulation aims to create a unified business environment in townships by setting standardized rules and making it easier for both formal and informal businesses to operate.

It provides businesses with tailored resources, such as simplified permit registration and designated trading areas, to ensure smoother operations within municipal areas.

The new by-law includes several key features aimed at boosting business activity in townships.

It allows individuals with business licenses to operate within designated areas, ensuring fair opportunities for South African citizens and residents. The regulation supports entrepreneurship, promoting the right to freedom of trade and contributing to township growth.

Municipalities are given the authority to create specific business zones for retail, industrial, and mixed-use enterprises, ensuring efficient use of space and aligning with broader development goals. These zones are designed to attract investment and improve infrastructure.

To help businesses thrive, municipalities will offer workshops, training, and access to resources like infrastructure and markets, promoting compliance with relevant laws and boosting operational capacity for small businesses.

The by-law introduces a simplified permitting and registration system with clear guidelines and easy access to application forms. Municipal officials will assist businesses in getting approvals smoothly.

It also ensures that businesses comply with public health and safety regulations through inspections and awareness campaigns.

The by-law promotes inclusive growth by focusing on skills development, mentorship, and market access. CoGTA is committed to engaging communities and stakeholders to ensure the benefits of the by-law reach all South African townships.