More than 500 spaza shops have been closed as a result of non-compliance, according to Lebogang Maile, the Gauteng MEC for economic development and finance.
This comes after President Cyril Ramaphosa recently ordered that all spaza shops and establishments that handle food register with their local governments within 21 days.
The deadline for registrations is Friday.
Some of these spaza shops were found to have failed to register with the Companies Intellectual Property Commission.
Other non-compliance issues include operating businesses from unsafe locations or in hazardous conditions, not having environmental health certificates of acceptability or approval, and not paying for operating licences issued by municipalities.
According to Maile, the province has implemented outreach programmes that have reached over 15 000 spaza shops and are designed to expedite registration and disseminate information.
2 605 applications filed
At least 13 616 registration forms had been sent out and 1 916 had been returned by Tuesday, he said, though some were not complete because crucial documents were missing.
Maile stated that 2 605 applications have been filed by non-South African spaza shop owners, based on information obtained from the City of Tshwane, Ekurhuleni, West Rand district municipality, and Sedibeng district municipality.
Due to incomplete documentation submitted by spaza shop owners, he said, there was no reconciled figure on the total number of compliant and non-compliant spaza shops by December 8.
“Most of the outstanding documents from applicants include unapproved internal floor layout plans, approved building plans, consent use, as well as certificates of acceptance and fire safety,” Maile said.
“Business owners have been advised to acquire this documentation for further processing of their applications.
“Additionally, there are businesses operating from informal dwellings in areas that are not proclaimed. These must first await a directive from the [provincial] department of human settlements.”
He emphasised that officials have been threatened for assisting foreign nationals with their applications and denounced any violence or threats directed at them.
Foreign nationals are permitted to operate businesses in South Africa as long as they meet all legal requirements, Maile emphasised.
Minimum capital investment
According to him, foreign nationals must either invest R5-million in an already-existing business or provide a business plan with evidence of R5-million in capital contributions in order to be eligible for a business visa under South African law.
Maile went on to say that foreigners do not have to meet the minimum capital investment required to start businesses of national interest, as specified in the industrial policy action plan.
“The Gauteng provincial government has sought assistance from the national Department of Home Affairs at all sites to address the asylum, immigrant and refugee statuses of foreign nationals to eradicate the submission of false documentation for spaza shop registrations.
“As the use of false documentation is illegal and may result in prosecution, we implore applicants to desist from submitting such documentation,” said Maile.
He also warned against South Africans submitting applications on behalf of undocumented and non-compliant foreign nationals and businesses.
