The MEC for Economic Development and Finance in Gauteng, Lebogang Maile has set out the strict procedures to be followed by foreign nationals who want to register their spaza shops in the province.
Maile said the Home Affairs guidelines are clear on the matter.
He was announcing the guidelines to be followed after some Soweto residents blocked foreign nationals from registering their spaza shops, claiming that they are not eligible.
Among the requirements Maile listed is that the foreign national should be in possession of valid documents to be in South Africa to run a business.
“Foreign nationals will be required to provide valid documentation from the Department of Home Affairs giving them authorisation to operate a business in South Africa. This must be in the form of a valid business visa or work permit.
The eligibility for a business visa, as per South African law, is that a foreign national must invest a prescribed amount of R5 million into an existing business or provide a business plan with evidence of R5 million capital contribution,” Maile said in his announcement.
This announcement comes as spaza shop owners of South African origin and foreign nationals scramble to meet the 21 day deadline set by President Cyril Ramaphosa on Friday last week that they should be formally registered.
During his speech last week on the matter of spaza shops, Ramaphosa announced that the government has banned the selling and use of some pesticides in the country. This measure is meant to prevent the pesticides from being used to disinfect production areas which then allegedly spills into food sold in spaza shops.
The pressure on Ramaphosa and the government to act on spaza shops came after several learners died in some parts of the country after eating poisoned food. Some learners in Gauteng, Limpopo, KwaZulu-Natal and Mpumalanga had to be hospitalized after eating food allegedly expired or with poison.
Maile also raised concerns that some South Africans citizens are registering spaza shops on behalf of foreign nationals who are not compliant with the laws of the country.
“This fragrant 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,” he revealed.
Maile warned that this could also potentially create legal challenges for the said South Africans where issues of negligence resulting in hospitalisations and deaths arise.
“Furthermore, this action poses a serious national security challenge to South Africans as the absence of documentation of foreign nationals means they do not exist in the system.”
