Over 51,000 Spaza Shops Registered in South Africa as Government Tightens Compliance

In a significant move to regulate informal trading and enhance the local economy, the South African government has successfully registered 51,788 spaza shops across the country. This announcement was made by ANC secretary-general Fikile Mbalula during a recent press conference. However, amidst this progress, 800 spaza shops were shut down for failing to comply with new stringent regulations, with a notable 93% of these noncompliant shops being foreign-owned.

The crackdown comes as the government’s December 13 deadline for spaza shop registrations draws near. Mbalula underscored the importance of adherence to the regulations, stating that the grace period provided by the president is nearing its end, and those shops that continue to operate outside the law will be closed. The objective, according to him, is to safeguard local economies and the well-being of communities from the impacts of illegal business activities.

Mbalula also elaborated on the specific compliance requirements, which include prohibiting illegal immigrants from running these local convenience stores, also known as tuck shops. Furthermore, legally residing immigrants must demonstrate a minimum investment of over R5 million in their business to continue operations. This, Mbalula explains, is part of the broader agenda to reclaim the economic landscape of townships and empower South African citizens.

The need for additional government inspectors was another key point raised by Mbalula to ensure rigorous enforcement and compliance within this sector. He emphasized that the spaza shop sector should primarily serve to empower South Africans and restore economic dignity.

While the focus remains on stringent compliance and regulation, Mbalula reassured immigrants that South Africa is open to them, provided they respect and abide by its laws. He issued a stern warning against any form of criminal activity and exploitation of the legal system, highlighting that it would not be tolerated and would be met with severe consequences.

This regulatory initiative by the South African government reflects a strong commitment to tackling issues of illegal immigration and informal trading within the spaza shop sector. Mbalula’s call to action not only aims to protect local economies but also to uphold the rule of law, ensuring that those who flout regulations face the necessary repercussions.