Parliament, Wednesday, 13 November 2024 – The Portfolio Committee on Cooperative Governance and Traditional Affairs welcomed the publication of the Standard Draft Bylaw for Township Economies, noting that it is long overdue and is a step in the right direction.
The primary aim of the bylaw is to create an enabling environment for small businesses in townships, supporting economic inclusion, job creation, and community empowerment. The bylaw will regulate informal and formal businesses and is designed to harmonise township business ecosystems by providing standardised norms and facilitating easier entry and operation for these businesses. It also supports businesses with tailored resources, including permit registration processes and designated trading spaces, ensuring streamlined operations in municipal jurisdictions.
Committee Chairperson Dr Zweli Mkhize welcomed this and said that this legislation will help ensure the ease of entry by township residents and communities into the economy. “It’s important for the bylaw to be used to encourage compliance with the law by the local traders and that there should be support for easy financing of the local traders so that they can compete with all the foreign spaza shop owners through access to finance and bulk buying,” said the Chairperson. “This will give them economies of scale to make their businesses profitable; otherwise, they fall prey to foreign traders who would come and take over their shops. That is why we’ve seen the proliferation of foreign-owned spaza shops in the townships.”
According to the Chairperson, the bylaws should facilitate regular inspections. “This will assure people that the products they purchase from particular shops are safe. He said it would also help to register the source of the goods sold in a spaza shop so that even the manufacturers and distributors could be inspected for compliance and safety.
“It is unacceptable that there have been so many people dying due to contaminated foodstuffs. It’s negligence of the worst order that really requires a very strong programme of inspection with consequences to those responsible.” The Chairperson said all the municipalities should use the bylaws to guide them on keeping people safe and ensuring food is inspected to prevent unnecessary deaths.
The Chairperson noted that spaza shops and retail are multi-billion-dollar sectors that net so much revenue annually that they should help boost the townships’ economies. “Particularly because most of the government expenditure on social grants basically goes to those kinds of foodstuffs and this can help regenerate the township economies, build local trade and create a vibrant economy,” he said.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, DR ZWELI MKHIZE.
For media enquiries or interviews with the Chairperson, please contact:
Name: Alicestine October (Ms)
Cell: 083 665 4345
E-mail: aoctober@parliament.gov.za
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