Azra Hoosen | ah@radioislam.co.za
20 November 2024 | 11:30 CAT
2 min read

The Institute of Chartered Entrepreneurs (IoCE) has criticised President Cyril Ramaphosa’s directive requiring all spaza shops to register within 21 days, calling it impractical and potentially harmful to the informal economy. The directive, aimed at addressing food safety following child poisoning deaths, risks financial losses and closures for thousands of small businesses, many of which operate with perishable stock and tight budgets.

The IoCE highlighted the government’s failure to engage stakeholders like informal traders and community leaders, as well as the lack of clarity on compliance support. It warned that overstretched municipalities would struggle to implement the directive effectively.

Public Interest SA’s Tebogo Khaas criticised the president’s plan, describing it as ill-conceived. He pointed to capacity issues within local authorities, stating: “Local authorities do not have the requisite manpower to make sure they can enforce good security regulations effectively. Why go this route?”

According to Khaas, the critical issue lies within the supply chain. He noted that even if spaza shops are re-registered and comply with health and safety regulations, informal traders might still supply expired goods. “Compliance at the supply chain is where the government is missing the point,” he added.

Khaas further highlighted the impracticality of the directive, noting the government’s track record of slow processing. “Licenses take a long time, but now, to ask tens of thousands of spaza shops to apply, you are just setting local authorities up for failure. If this was set up using a phased approach, maybe it could work,” he said.

He also warned that the directive could encourage corruption. “It cultivates the possibility of bribing; police themselves take advantage of non-complying businesses. It creates an opportunity for unscrupulous individuals,” he added.

The IoCE proposed alternative measures, including phased registration, education on food safety, and strengthening municipal resources. It urged the government to work with the informal sector to create a balanced plan that protects public health without destabilising livelihoods.

Khaas asserts that the government must reconsider this “hastily announced directive” and instead adopt a phased approach to implementing the re-registration of non-compliant spaza shops. He also emphasised the need to strengthen local municipalities to ensure they have the capacity to effectively implement any directives.

“We ask the president to prioritise public health and economic stability,” he stressed.

LISTEN to the full interview with Ml Sulaimaan Ravat and Tebogo Khaas, chairperson of Public Interest SA, here.