Spaza shop owners are under pressure to register their businesses following President Cyril Ramaphosa’s directive on Friday, 15 November.
Minister in the Presidency Khumbudzo Ntshavheni has warned South Africans who have been registering spaza shops for illegal foreigners, saying they will not get away with breaking the law.
Ntshavheni on Thursday briefed the media on the outcomes of the Cabinet meeting and tackled the issue of corruption in the registration of spaza shops.
Spaza shop owners are under pressure to register their businesses following President Cyril Ramaphosa’s directive on Friday, 15 November.
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Ramaphosa announced that all spaza shops must be registered with their respective municipalities within 21 days.
The directive comes amid a rising number of child deaths linked to food-borne illnesses caused by items purchased from the shops.
“Any shop not registered within 21 days and that does not meet all health standards will be closed,” Ramaphosa said.
Since Ramaphosa’s announcement, there have been allegations of South Africans registering shops for illegal foreigners.
Ntshavheni has warned citizens.
“The people who are registering spaza shops are not only foreign nationals. Everyone who owns a spaza shop, [or] food handling facility must register with the municipalities,” said Ntshavheni.
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“If you are going to be used by a foreign national who is illegal in the country, to register a spaza shop, you should know that we are going to come for you. Law enforcement is also going to come for you. You should also know that Sars will also come for you to collect because we expect you to be running that business.
“We have indicated that the departments of small business development and trade, industry and competition are going to launch a fund to support South African-owned shops.”
Spaza shop registration
The two departments have set aside about R500 million for the fund.
Ntshavheni reiterated the R5 million investment that foreigners will need to prove before being able to register their shops.
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“In terms of the Immigration Act in South Africa, a foreign national can run a business or operate a business if they invest a minimum of R5 million and we’re hoping that when municipalities register the foreign-owned shops, those that are documented in the country, they must demonstrate an investment of R5 million in that spaza shop,” she said.
While some have called for an extension in the deadline, Ntshavheni said the decision on this will be informed by the National Joint Operational and Intelligence Structure depending on the feedback they receive from municipalities.
Since Ramaphosa’s announcement on 15 November, nearly 200,000 spaza shops have been visited nationwide, while more than 1,000 shops, supermarkets and warehouses have been closed down.
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“Large quantities of goods have been confiscated, and numerous fines issued for violations of the bylaws. There will be added scrutiny of food manufacturers to ensure proper controls are adhered to,” said Ntshavheni.
