The South African government has set new laws to improve how businesses in townships operate. These changes are known as the ‘Standard Draft By-Law for Township Economies’ and aim to support businesses while ensuring they meet vital rules that protect consumers. From Spaza Shops to informal traders, these laws will impact how businesses operate and interact with their communities.
The by-law was issued under the Local Government: Municipal Systems Act of 2000 by the Minister of Cooperative Governance and Traditional Affairs (COGTA), Velenkosini Hlabisa, on 7 November 2024.
Higher Standards for Cleanliness and Spaza Shop Food Safety
The first main area of focus of the new laws is to ensure that spaza shops maintain high standards of cleanliness and safety of the business. These rules demand businesses to keep their shops clean, store goods properly, and make sure food is fresh and well maintained. Good proper waste management is also important, with business owners needing to dispose of the trash appropriately and recycle whenever possible. Furthermore, businesses must not block public pathways or create unsafe conditions for customers and the community. Any business that can abide by these cleanliness and safety standards can attract more customers and build trust among the consumers.
Businesses Must Be Registered
One of the new provisions instituted by these laws is the requirement for all businesses to register with local municipalities and get the necessary permits to operate their businesses. This registration process is crucial in legalising businesses, making them appear more professional and trustworthy. However, registered businesses are eligible for government funding, business support programs, and other resources aimed at improving operations.
Creating Designated Business Areas
The new laws also aim to create designated business zones within townships. Organised business zones help improve the overall shopping experience for customers, increase foot traffic to stores, and encourage collaboration between nearby businesses. Being part of these zones will help you grow and succeed while benefiting from a shared environment designed for economic development.
Support Programs for Business Growth
Recognising that some businesses may encounter some difficulties in meeting the new regulations, the government has provided several programs to support business owners. Some of these programs are training workshops to assist entrepreneurs in improving their business operations and infrastructure support in the form of equipment such as cold storage. Furthermore, they have also made educational resources available to guide them through the new rules. By offering support programs, the government ensures that businesses can successfully navigate the changes and thrive.
Fair Competition and Order
The new laws are also designed to create fair competition and maintain order within township economies. To achieve this, businesses will be restricted from trading near specific zones, including parks or near sensitive buildings, to ensure that public spaces remain available for their intended purposes. These measures will help to bring order in the business environment and all the businesses will have an equal opportunity to succeed.
Penalties for Breaking the Rules of Spaza Shop Food Safety
For businesses that don’t comply with the new regulations, a penalty will be enforced to them. The government has taken a supportive approach by allowing businesses to address violations before facing harsh consequences. The first offence will result in a written warning, giving businesses a chance to rectify the situation. If the violations continue, the business may face a license suspension. This system will ensure businesses follow the rules while providing an opportunity for improvement
What These Changes Mean for Businesses
The new laws bring both challenges and opportunities for business in the township. On the positive side, businesses that adhere to the regulations will have a good reputation, higher customer trust, and better access to resources, all of which will lead to sustainability.
The Standard Draft By-Law for Township Economies is a major step in improving the business landscape in South African townships. By focusing on cleanliness, registration, designated business zones, and fair competition these regulations create a more organised and supportive environment for businesses. As much as the changes may seem to offer a challenge to some entrepreneurs, the advantages of better customer trust, more resources, and a growing business community make the changes worth embracing. Finally, these new laws may be beneficial in improving the township economies and therefore the future looks bright for businesses and the townships.
