GAUTENG SPAZA SHOPS 17 617 APPLICATIONS @KASIBCNEWS

BACKGROUND 

In 2024, South Africa was confronted with a crisis of biblical proportions, wherein scores of children were killed or hospitalised following the consumption of foods from local spaza shops. Following extensive forensic investigations, Terbufos, an organophosphate that is used as a pesticide, was found to be the cause of death of the children. Empirical evidence indicates that the highly toxic substance, which can cause irreversible damage and fatalities, was being used in local spaza shops and households for rodent control. 

In response to the crisis, on the 15th  of November 2024, President Cyril Ramaphosa addressed the nation, where he announced decisive measures to address the recurring foodborne illnesses and deaths affecting young children in particular. These include the immediate closure of spaza shops implicated in the deaths and stricter regulations to protect communities. 

The President outlined three critical interventions to be implemented with immediate effect. The objective of these interventions was to get hazardous pesticides off the street; to protect children from exposure to these substances; and to prevent future outbreaks. To ensure compliance, the President issued a directive that all spaza shops and food-handling facilities were to register with their respective municipalities within 21 days, emphasising that any shop that was not registered within the stipulated period and does not meet all health standards and requirements was to be closed. 

The deadline was subsequently extended on the 18th of December 2024 following consultations with spaza shop owners. The final deadline for registration was moved to the 28th of February 2025. Since the announcement of this registration programme, the Gauteng Provincial Government (GPG) has held monthly media briefings to update residents of the province about developments pertaining to the registration drive. 

During the most recent briefing, on the 2nd of February 2025, an update was given on the progress of applications (including digitisation efforts), inspections conducted and training interventions provided by the provincial government. 

In addition to this, we outlined joined plans by Gauteng municipalities anchored on the Joint Action Plan as well as the support provided by the national Department of Small Business Development. In this final update, we will provide the final quantitative data over the past 3 months, outline the next steps in the registration process and provide information on how we intend to sustain the monitoring and evaluation component on a long-term basis. This will ensure adherence to sustained compliance measures so that the crisis does not repeat itself in the future. 

EXPRESSION OF GRATITUDE TO SPAZA SHOP OWNERS AND GOVERNMENT OFFICIALS 

As a starting point, it is important to express sincere gratitude to owners of spaza shops and food-handling facilities who heeded the call to apply for the registration of their enterprises. This programme was the first large-scale spaza shop registration drive in the democratic dispensation. 

The patience of spaza shop owners in following the process, which at times necessitated numerous visits to registration centres and the use of personal resources, must be commended. Officials across all tiers of government – national, provincial and local – must also be commended for their dedication to ensuring a seamless registration process despite the complexity of the undertaking. 

Operating at just over 90 registration sites across the province, officials went beyond the call of duty to ensure that spaza shop owners receive information needed, and spent countless hours taking spaza shop owners through the process in detail. 

This expression of Batho Pele principles reflects the commitment of our public servants and is greatly appreciated. The GPG would also like to extend sincere gratitude to Professor Hanna-Andrea Rother, the Head of Environmental Health Division in the School of Public Health at the University of Cape Town, whom we consulted to gain deeper knowledge on the subject of pesticide toxicity. 

Her input helped us in determining the approach to the elimination of the identified pesticide in the deaths and hospitalisations of children in the province. 

PROGRESS ON THE REGISTRATION OF SPAZA SHOPS AND FOOD-HANDLING FACILITIES AND ISSUING OF COAs 

As of the 28th of February 2025, the total number of applications for the registration by spaza shops and food-handling facilities across the Gauteng Province is 17 617. This includes 7107 applications by foreign nationals across all municipalities, with the City of Johannesburg having the highest number of applications. 

The City of Ekurhuleni has the highest number of applications by foreign nationals, with a total of 2543 applications received. Applications are approved following inspections. A total of 29 116 inspections have been conducted thus far. Some of these inspections precede the president’s announcement, with the GPG having started them as far back as July 2024.  

According to South African laws, spaza shops and food-handling facilities need to apply for, and have a certificate of acceptability (COA). 

This is a mandatory food business permit that is issues under Regulation R638, confirming compliance with basic food safety and hygiene requirements for food premises, handling and transportation. A total of 4610 COAs have been approved and/or issued to spaza shops and food-handling facilities as of the 28th of February 2025, with 128 of these issued to foreign nationals. 

The approval process is extensive and is preceded by the inspection of business premises as well as the verification of documentation. The approved/issued COAs are lower than the number of applications for registration owing to the undertaking of this process. Other factors that have impacted the number of approvals include the submission of fraudulent documentation, delays in the verification of foreign nationals by the national Department of Home Affairs, incomplete documentation, the contravention of building regulations on the part of business owners and the high cost of business licences.  

With regard to the high cost of business licences, the GPG is exploring various mechanisms to support local-owned, compliant enterprises. These include the allocation of funds under Inclusive Economy programmes to support compliant spaza shop-owners who meet the requirements. 

Additionally, we are exploring funding options or corporate social responsibility approaches through the private sector or Fast-Moving Consumer Goods (FMCG) companies who have a direct business relationship with spaza shops.  

REGISTRATION OF SPAZA SHOPS OWNED BY FOREIGN NATIONALS 

Prior to the spaza shop registration programme, there were legitimate concerns raised by South Africans about the over-concentration of foreign-owned spaza shops and foodhandling facilities in Gauteng townships. 

These concerns were not ignored by the GPG. In complying with South African laws on enabling foreign nationals to operate businesses within the country, the provincial government also sought to protect the interests of local businesses and communities. 

We recognise the value in supporting local businesses and challenging unfair business practices that displace locals in the spaza shop industry. Part of making sure that foreign-owned businesses do not strangle locals out of the industry is to ensure compliance not only in the enterprises themselves, but also in the status of the foreign nationals running these enterprises.  

As stated, 7107 applications were received from foreign nationals. Foreign nationals were required to provide valid documentation from the national Department of Home Affairs giving them authorisation to operate a business in South Africa. This was 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. 

Foreign nationals may establish a business which is of national interest to South Africa, as stipulated in the Industrial Policy Action Plan, for which there is no minimum capital investment required. While the Department of Home Affairs is the custodian of the business visa process, the Department of Trade, Industry and Competition facilitates the recommendation of support for granting businesses which have a substantive economic impact. 

Working with the said departments and law enforcement, the GPG has clamped down on illegal trade and undocumented foreign nationals operating enterprises in townships. This will continue beyond the closure of the registration drive, to ensure that South African laws are not broken by foreign nationals seeking to conduct business within the borders of our country. 

NON-COMPLIANCE AND TOWNSHIP PROCLAMATIONS 

Non-compliance has been a salient challenge in the registration programme. A total of 15 478 spaza shops and food-handling facilities have been deemed non-compliant, with 498 of these closed with immediate effect. While non-compliance in many instances was the result of failure to adhere to food safety and environmental safety standards, in some instances, COAs could not be issued to spaza shop owners and food-handling facilities owing to their location in undeclared townships. 

 Township establishment is a multifaceted procedure that requires adherence to a prescribed set of processes and follow-ups and must be overseen by a skilled and registered town planner. It also requires coordination with other disciplines including geologists, land surveyors, civil and electrical engineers etc. Various assessments must be conducted, including but not limited to Environmental Impact Assessments and Traffic Impact Assessments. In some cases, the properties in question may be agricultural holdings on which, by law, townships cannot be established. In this instance, reverting the property to farmland is a prerequisite preliminary step, one which is followed by an extensive approval process for the excision of holding. 

This generally takes at least two months. In cases where township proclamation is not yet completed, as is the case in some townships, municipalities will be issuing temporary permits whilst the proclamation process is being undertaken. In some instances, such as where structures are erected on critical public infrastructure, there will be a need for demolition in order to protect this critical infrastructure that services our communities. In such cases, demolition will only proceed where regularisation cannot be achieved. It is important to re-state that our approach to this matter is developmental. Demolishing structures is our last resort as we recognise the financial and economic implications of such an intervention. 

The GPG will only opt for this resort when there is absolutely no possibility for regularisation and where the cost of keeping the structures far outweighs the benefits to communities in the immediate and the long-term.  

TRAINING INTERVENTIONS BY THE GPG AND MUNICIPALITIES 

Micro enterprises are predominantly owned and managed by individuals who belong to historically underprivileged groups. The implication is that many such individuals do not have the necessary training needed to run compliant enterprises. However, this does not negate their ability to acquire this training and improve on their business operations. As such, and in line with our pro-poor developmental agenda, the GPG instituted various training interventions for spaza shop and food-handling facilities’ owners. 

These training programmes focused on principles and practices of food safety and hygiene. The number of training interventions undertaken to date stands at 2028, with an additional 7801 informal traders and food handlers reached by the training interventions. The number of training interventions provided, while significant, has been hampered by the low capacity of Environmental Health Practitioners (EHPs) across Gauteng municipalities. South Africa’s national fiscus is constrained due to various factors that include but are not limited to market volatility and socio-economic challenges including unemployment. 

These structural issues have a direct impact on the provincial fiscus and by extension, on our ability to direct resources towards the employment of more EHPs. This inability to create EHP roles due to budget constraints has lessened the training interventions implemented. However, the GPG continues to maximise these training interventions with available resources and partnerships, including with nongovernmental organisations (NGOs) working in our communities. 

ONGOING INSPECTIONS BEYOND THE APPLICATION DEADLINE 

The end of the spaza shop and food-handling facilities deadline does not imply complacency on the part of GPG in terms of ensuring continued compliance. One of the key challenges that have given rise to the challenges of non-compliance by spaza shops in Gauteng is that most structures used for spaza shops do not meet building control, zoning rights and environmental health standards. Municipalities will continue to intervene in this through the deployment of building Inspectors, environment health officers, Local Economic Development officers, fire inspectors as well as town and regional planners. Additionally, noting that some spaza shops and food-handling facilities continue to operate even after prohibition orders are issued, law enforcement will continue to play a critical role, with prosecutions encouraged by the GPG. 

The South African Police Service’s (SAPS) National Joint Operational and Intelligence Structure (NATJOINTS) and the Provincial Joint Operational and Intelligence Structure (PROVJOINTS) must continue to provide the necessary support. 

The aim of this is not to be punitive, but to ensure that local enterprises meet the highest standards of safety so as to prevent the recurrence of the crisis that has wreaked havoc in communities. 

QONDIS’ISHISHINI LAKHO AND THE IMPLEMENTATION OF RECOMMENDATIONS FROM THE TOWNSHIP COMMERCIAL PROPERTY OWNERS IMBIZOS 

The Gauteng Department of Economic Development has been hosting regional Township Commercial Property Owners Imbizos. The aim of these Imbizos is to deliberate on the ownerships of properties in townships and the challenges encountered by owners with regard to zoning requirements. Other issues for discussion have been the regularisation of properties built without zoning permits, exploring conditions under which municipalities allow for regularisation. 

The envisaged outcome of these imbizos is to develop a deeper understanding of the issues influencing township commercial property rental market; to map a collective programme of action aimed at improving trading/operational conditions in the townships; to optimally use space in the township to enhance manufacturing capacity and streamline supplier value chains; to create a credible and reliable database of township owned enterprises, including economic assets; the coordination of all of government efforts towards impactful intervention of the township economy; and to position engagements to educate communities on compliance requirements. In addition to this, the Department re-launched the Qondis’ Ishishini Lakho campaign as a comprehensive programme to address all aspects of illegality prevalent in the township economy. 

The campaign assumes a developmental approach to promoting compliance. It’s an approach anchored on collaboration across various stakeholders playing a critical role in community development. Whilst focus has been on the extent to which businesses comply with licensing, permits and health conditions, the conditions of properties used in business operations must also be compliant with zoning regulations in local government. 

CONCLUSION 

While the 28th of February 2025 marked the deadline for the submission of applications for spaza shop and food-handling facilities’ registration, the process will be ongoing beyond this deadline. We want to give reassurance to Gauteng communities that this programme was not a box-ticking exercise or a spontaneous response to the illnesses and deaths that occurred in the past year. 

Rather, it is a long-term undertaking that seeks to not only ensure the compliance enterprises operating in our townships, but to also ensure the protection and promotion of locally-owned spaza shops that can co-exist with compliant and lawful enterprises owned by foreign nationals. Gauteng is the nerve-centre of the national and regional economy, and spaza shops play a significant role in the development and growth of the provincial economy. 

However, their operations must adhere to the laws of the land. In the State of the Province Address (SOPA) tabled by the premier, Panyaza Lesufi, on the 24th of February 2025, the issue of  lawlessness was identified as one of the key challenges confronting the province. Alleviating crime in the province, which is a pre-requisite for building a functional and prosperous society, is dependent on adherence to laws governing trade and industry. 

Compliant spaza shops and food-handling facilities are not only important for ensuring food safety and preventing illnesses and deaths. They are also important for attracting investment into the province, without which, it will not be possible to build an inclusive economy that will serve as a foundation for sustainable development. 

On the 3rd of April 2025, we will be hosting the Gauteng Investment Conference in Johannesburg. This conference will catalyse the province’s economic momentum and promote Gauteng as a leading global investment and tourism destination. 

The registration of spaza shops and food-handling facilities is a critical component of the objectives that we wish to accomplish with this conference, because spaza shops are an important part of our township economy, which can only grow through local and global investments. 

Therefore, this registration programme goes beyond addressing immediate challenges, and speaks to our long-term developmental strategy.