As business owners race to register their businesses before the 21-day deadline as stipulated by President Cyril Ramaphosa, others are still scrambling for cash and information to get registered.
An ice cream seller, Joe Mahumedalmeida, is racing against time to register his business, but has no money or information on what to do.
Mahumedalmeida has been selling ice cream since 1999 and operates outside schools in Park View from his three-wheeled bicycle.
The recent ban on sales at schools has left him devastated and without an income, he said.
When the department announced the ban on sales at schools, he had to immediately stop selling.
“This is the only business I have, selling ice cream,” he said.
Ramaphosa announced the closure of spaza shops implicated in food-borne illnesses that have claimed the lives of 22 children in recent weeks. He said all spaza shops and food handling facilities must be registered with municipalities within 21 days.
Furthermore, Ramaphosa said that any shop not registered within 21 days and which does not meet all health standards will be closed.
“It's so tough, since the government is saying no more selling ice cream around the school. I don't even have the money to go to the department to register the business for the licence — for now I don't have cash. Schools will be closed soon and it's very tough. January is coming and I am looking after my two boys,” he said.
Mahumedalmeida, who has five children, takes care of his two minor children aged seven and 16 years.
He also sold snacks but stopped when he saw reports of children dying.
Mahumedalmeida's life changed in 2020 when his wife died of cancer.
“She left me with five children and I am struggling and they have stopped me from selling ice cream,” he said.
When TimesLIVE Premium spoke to him he said he was trying to sell on the streets to gather money for transport and registration.
However, he is unsure how much he needs to get registered and obtain the licence.
Mahumedalmeida said if he fails to register, his children will go hungry.
“We are going to starve. Even now, I am crying to get a chance to buy something for my children so they can be happy for the festive season ,” Mahumedalmeida said.
On a good day of sales, after spending R700 to buy stock, he makes about R1,200.
Despite his own challenges, Mahumedalmeida has welcomed the government's decision and the call for business registrations for the safety of the community and children.
He is worried about his future.
The City of Tshwane confirmed that it issues a trading licence to informal traders operating in approved/demarcated areas as per the City of Tshwane Street Trading By-laws.
The city's spokesperson, Lindela Mashigo, said the specific requirements for spaza shops and food-handling business include appropriate zoning; South African ID/citizen or certified home affairs documents for foreigners, registration with Companies and Intellectual Property Commission; a copy of title deed/copy of lease agreement/proof of residence/affidavit or certified ID copy of the stand/erf number and a copy of a menu in case of a restaurant and tax clearance certificate (Sars) documents.
Mashigo said Tshwane has information workshops that are conducted by the municipal health department targeting spaza shops or food-handling businesses.
“The city will also be registering these businesses across the seven regional offices which will be followed by licensing of qualifying businesses. All spaza shop owners are to visit these offices from November 21 2024,” he said.
He said spaza shops or food-handling businesses are supposed to attend food safety training as well as the street trading bylaw training to be issued with licences or permits.
Mashigo said they are expected to complete specific licence applications and pay annual fees as follows:
- Businesses application — R 873.60.
- Item 1 & 2 (Provision of Food & Entertainment) — R 6,374.55
- Informal traders — R104
- Hawkers’ application — R205
Mashigo said consequences for noncompliance include the confiscation of goods and a fine in terms of City of Tshwane’s street trading bylaw and closure of the business.
“The municipality has been running the registration and licensing process from November 18 at the Middestad Building (Pretoria Central). However, the city will from 21- 29 November start with the mass registration process in all seven regional offices and business support centres (Hammanskraal, Soshanguve, Olievenhoutbosch, Atteridgeville, Nellmapius and Bronkhorstpruit),” he said.
“Only individuals and businesses that meet the legal requirements and regulations stipulated by South African laws will be permitted to operate businesses in the country.”
— Government
The Gauteng provincial government said it has “simplified” the registration process for spaza shops operating in the province.
In a briefing on Tuesday, Gauteng finance and economic development MEC Lebogang Maile said the registration process has been simplified to ensure business owners are not caught up in red tape while ensuring compliance is achieved.
Maile said foreign owners will have to provide home affairs documentation “giving them authorisation to operate a business” in the country.
He said this must be 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 R5m into an existing business or provide a business plan with evidence of R5m capital contribution,” he said.
TimesLIVE reported that members of Operation Dudula in Soweto blocked foreign nationals from registering their businesses on Monday.
National Informal Traders Alliance president Rosheda Muller said Ramaphosa’s deadline to register all spaza shops within 21 days is “impossible”.
The Institute of Chartered Entrepreneurs has expressed concern about Ramaphosa’s “hasty directive” to register non-compliant spaza shops and said the knee-jerk decisions could do more harm than good.
Meanwhile, the government has welcomed the response by various stakeholders to implement the interventions to address the outbreak of food-borne illnesses and illicit trade.
The government said while the process of registration of spaza shops and other small medium business enterprises — as one of the measures to mitigate this challenge — has commenced in various parts of the country, they are concerned about isolated incidents of disruptions, especially in areas around Soweto, which have since been attended to by law enforcement agencies.
“Government appeals to members of the public not to disturb the process of registration by blocking certain shop owners from participating in the process, this includes conducting unlawful inspections by members of the public and other unauthorised bodies. Lawful joint inspections are ongoing across the country, led by multidisciplinary teams comprising of experts and officials from various government departments, state bodies and law enforcement agencies,” said government's Foster Mohale.
Mohale emphasised that the law allows every shop owner who is a legitimate trader and who meets the legal requirements to own a business in the republic to register a business and trade.
He said in processing the applications for registration, the government will make every effort to ensure account is taken of every legal prescript that allows people to do business in the country.
“Only individuals and businesses that meet the legal requirements and regulations stipulated by South African laws will be permitted to operate businesses in the country.”
“We have been inundated with enquiries and concerns from individual business owners and organised groups about the registration deadline of 21 days and requests for extension. We would like to urge the business community to come forward within this period and ensure that they get their businesses registered without delay,” he said.
TimesLIVE
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