Spaza shop crackdown 'potentially disastrous for small businesses'

Cape Chamber of Commerce and Industry says plan is 'ill-conceived'

20 November 2024 - 15:22 By TIMESLIVE
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A spaza shop selling basic goods in Walmer Township in Gqeberha, Eastern Cape. File photo.
A spaza shop selling basic goods in Walmer Township in Gqeberha, Eastern Cape. File photo.
Image: The Herald/Eugene Coetzee

The government's decree for spaza shops to be registered within 21 days is potentially disastrous for small businesses and the distribution of food in poor communities, says Cape Chamber of Commerce and Industry president Jacques Moolman.

The crackdown in response to the death of at least 22 children was announced by President Cyril Ramaphosa on Friday.

Moolman was critical, saying rather than directly targeting criminals responsible for peddling illegal pesticides, the government was dishing out “collective punishment to an entire economic sector that supports a large proportion of households in underprivileged areas”. 

“There are many other reasons why this move is ill-conceived, not least that it is unrealistic. Struggling municipalities and law enforcement agencies are already failing to fulfil their service mandate due to well-publicised budget and capacity challenges. It is implausible for these under-resourced state entities to ensure tax compliance and provision of company documents and food safety certificates as per the new spaza shop requirements.”

He said it was implausible to expect many thousands of spaza shops, with staff and dependents, to comply with multiple layers of regulation in three weeks.

“Such a move is tantamount to criminalising an entire vital sector of our economy and evokes memories of the similarly ill-advised crackdown against non-compliant taxis that ultimately proved hugely damaging,” said Moolman.

State resources would be better spent on identifying those directly responsible for food safety hazards.

“Townships are run on informal food businesses everywhere,” added Moolman.

TimesLIVE


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