ActionSA is proposing a private members bill in parliament to be called the #Spaza4Locals Bill for the regulation of township-based businesses.
This is in light of the foodborne disease outbreak allegedly from snacks purchased from spaza shops across the country.
The bill will aim to ensure that the spaza shops market is only open for South African citizens with strict regulation to combat illegal activities.
It also proposes strict penalties, including imprisonment or fines for illegal traders.
The party revealed that the bill is currently in draft and would be submitted to the state lawyers and advisors in the legislature and then be submitted to the small business committee for debate.
Lerato Ngobeni, ActionSA’s chief whip, said it could not be accepted that a place of business could also be used as a bedroom and bathroom once the operation closes its doors for the day.
Formal registration of spaza shops
Ngobeni said the bill encourages the formal registration of spaza shops to improve health standards, protect consumer rights, and enhance oversight.
She said the regulation of spaza shops through bylaws is already in place, but the enforcement is not in place.
The bill aims to regulate ownership of all spaza shops in the country; this is to strengthen the township economy and ensure that its profits remain in South Africa.
“The township economy is estimated to be worth about R900-billion, contributing 6% to 9% of the total gross domestic product,” said Ngobeni.
“About 75% of township entrepreneurs are aged between 18 and 35, highlighting a strong entrepreneurial spirit among young people despite limited resources.”
She emphasised that the bill will also address illegal activities by reducing the influence of foreign syndicates and enforcing stricter compliance measures.
“We aim to cultivate a fair, competitive, and sustainable microbusiness sector that prioritises South African participation and ownership, supports economic growth, and ensures safer operating practices.”
She said the current regulations do not provide enough support to the spaza shops.
