Spaza shop re-registration — capacity fears as Gauteng government outlines steps for mammoth task

A spaza shop in Chiawelo, Soweto.Government must remove obstacles in the way of small township and other businesses, and make it easy for businesses to be established. (Photo: Bheki Simelane)

By Bheki C. Simelane

19 Nov 2024

The Gauteng government has unveiled its plan to re-register spaza shops within 21 days, but significant capacity constraints add to store owners’ concerns.

Following outrage over the deaths of children from allegedly contaminated spaza shop food items, Gauteng MEC for Economic Development Lebogang Maile convened a media briefing to outline plans to reregister all spaza shops in the province within 21 days on Tuesday, 19 November 2024.

Migrants are often associated with the industry and Maile outlined several requirements for the successful registration of their businesses.

Foreign nationals will be required to provide valid documentation from the Department of Home Affairs, permitting them to operate their businesses.

“We do not have that authority as the province or municipalities,” said Maile.

He said the documentation had to be in the form of a valid business visa or work permit. Maile said the eligibility for a business visa is that a foreign national must invest R5-million into an existing business or provide a business plan with evidence of a R5-million capital contribution.

spaza shop re-register gauteng A spaza shop in Chiawelo, Soweto. (Photo: Bheki Simelane)

“Foreign nationals may establish a business which is of national interest to South Africa as established in the policy action plan for which there is no minimum capital investment required,” said Maile.

He said those employed in the shops must have a work permit, the most common of which is a work visa.

He also warned South Africans against registering businesses operated by foreign nationals who did not adhere to the legal requirements.

“This flagrant disregard for the law is unacceptable as it makes it difficult for municipalities to compile valid data on enterprises in townships which in turn makes the work of monitoring their compliance difficult. It could also potentially create legal challenges for the said South Africans where issues of negligence resulting in hospitalisation and death arise,” said Maile.

Read more: Gauteng’s new spaza shop by-laws: a necessary move amid rising food safety concerns

Addressing concerns around the province’s capacity to handle the re-registrations, Maile admitted that it was an issue.

“You must have people who will be there capturing and receiving those forms and whether that’s enough, it’s something else.

“I don’t think there will ever be enough capacity because the problem is huge, but we are trying our level best and I think we are the only province so far since the President spoke on Friday that is clear on what must happen and how,” Maile said.

He said the province would support municipalities during the registration.

Read more: Ramaphosa orders immediate closure of all spaza shops linked to child deaths as food poisoning cases grow

Maile also highlighted zoning rights and health standards challenges.

He said municipalities would deploy building inspectors, environment health officers, local economic development officers, fire inspectors and town and regional planners to ensure shops met safety standards.

Maile said all spaza shops implicated in deaths should remain closed. According to the Gauteng government, 23 children have died from the suspected spaza shop food poisoning outbreak, which has largely been blamed on stores’ stocking of lethal pesticides.

Red tape fears

“My brother went to register yesterday and before that, this store was officially registered,” said 28-year-old Soweto spaza shop worker Musei Edauo on Tuesday, lamenting the limited registration period.

Phumudzo Phampha, 38, a South African spaza shop owner from Soweto, told Daily Maverick that entrepreneurs were discouraged by endless red tape. She had not re-registered her business yet.

“They want me to have a fire extinguisher. It’s one of the requirements, but I cannot afford a fire extinguisher. It’s expensive,” Phampha said.

Read more: ‘We will starve to death’ — communities’ plea after foreign shop operators face expulsion

While the scramble for the registration of spaza shops unfolds, some foreign spaza shop operators find themselves in a predicament.

“I cannot register immediately because I have to renew my papers first and that takes very long. I am not living in the country on a permanent citizen status. I will need more time to get my papers in order before I can register and I do not think it can all be done in 21 days because Home Affairs takes long,” a Pakistani spaza shop operator in Soweto, who asked to remain anonymous, said.

21-day ultimatum

Responding to concerns that 21 days to re-register businesses was insufficient, Maile said he was just carrying out the President’s instructions.

“I’m just a merciful soldier. I’m doing what the President has ordered and instructed and we will work within the 21 days to the best of our ability.”

He said that the provincial department understood the President to mean that the registration process began on Monday, 18 November 2024, and would exclude weekends.

Maile said an imbizo would be held in Soweto on Sunday on the ownership of properties in townships and zoning requirements.

Operation Dudula

Members of the anti-immigrant group Operation Dudula this week staged a picket in Soweto demanding that foreign nationals should be prevented from re-registering their businesses and that the shops be left to South African entrepreneurs.

On Tuesday, Operation Dudula members, with other community organisations and some residents waited at the entrance to the Jabulani Civic Centre to block foreign nationals from re-registering their businesses.

Read more: Spaza shop shooting — residents paint different picture to Operation Dudula as tensions simmer

Maile said that police knew all the registration points and were expected to maintain order.

Philisiwe Dlamini, 43, from Soweto, said at the picket, “We don’t want them to register. These shops belong to South Africans. This is an opportunity for the government to rectify their mistake and return the shops to South Africans. Instead, the government is siding with foreigners, that’s why we are standing up for ourselves.” DM

Categories:

Tags:

DM is much better if you are signed in...

Business Maverick

Red tape fears

21-day ultimatum

Operation Dudula