By Johnathan Paoli
Cooperative Governance and Traditional Affairs (COGTA) Minister, Velenkosini Hlabisa, has emphasized the vital role of municipalities in South Africa’s spaza shop registration drive.
Speaking at a media briefing on Wednesday, Hlabisa outlined progress made during the 21-day registration period and the road ahead to improve compliance and regulate the informal retail sector.
Government extended the registration deadline for spaza shops and other food handling outlets to 28 February 2025.
This follows the end of the initial 21-day registration period, which concluded on Tuesday, 17 December 2024.
“Municipalities are working to adopt and adapt the by-laws gazetted on 7 November. While this process requires extensive consultation, significant strides have been made,” Hlabisa said.
He urged municipalities to maintain capacity for assisting those registering as operations decline during the holiday season.
“We also urge business owners to continue with their registration process within their respective municipalities and not wait until the next registration deadline.”
The registration of spaza shops aims to address the proliferation of food-borne illnesses and illicit trade while formalizing the sector to stimulate the township economy.
The government envisions a system where municipalities not only regulate health and safety compliance but also determine the number of foreign-owned spaza shops, ensuring broader economic benefits for South Africans.
Under the new by-laws, spaza shops will be confined to a single location of operation and required to submit notices if they wish to relocate.
Additional regulations mandate compliance with municipal health and safety standards, tax obligations, and operational transparency.
Gauteng Premier Panyaza Lesufi previously described the registration drive as a foundational step toward accountability and proper regulation of informal trade.
Municipalities will conduct verification processes, including inspections by Environmental Health Practitioners and the National Consumer Commission, to ensure registered businesses meet the requirements for trading licenses.
As of mid-December, 42,915 applications had been received nationwide. Progress across provinces varies significantly:
Eastern Cape: 6,730 applications, 1,783 registered.
- Free State: 5,013 applications, 879 registered.
Gauteng: 2,605 applications, 733 registered.
KwaZulu-Natal: 7,187 applications, 749 registered.
Limpopo: 5,504 applications, 4,223 registered.
Mpumalanga: 9,283 applications, 7,263 registered.
Northern Cape: 1,585 applications, 611 registered.
North West: 5,005 applications, registrations ongoing.
Western Cape: 3,145 applications, all registered.
Hlabisa said the registration process is designed to offer a clearer picture of formal and informal businesses operating within municipalities.
Meanwhile, the Department of Small Business Development has rolled out support initiatives such as the Spaza Shop Support Programme and the Township and Rural Entrepreneurship Programme.
The Spaza Shop Support Programme provides up to R15,000 in funding, structured as 70% grant and 30% loan, to help compliant business owners stabilize and grow their operations.
These financial relief programs aim to bolster compliant entrepreneurs while encouraging broader adherence to the registration and licensing framework.
Beyond registration, enforcement teams are conducting inspections of spaza shops and other food-handling businesses.
In collaboration with SARS Customs and the Border Management Authority, operations target illicit trade and unsafe goods, particularly during the festive season.
Recent raids at ports of entry, such as Durban, resulted in the confiscation of 470 liters of illegal pesticides.
Meanwhile, the government is ramping up public education campaigns focused on food safety, targeting schoolchildren, parents, and teachers to raise awareness about food-borne risks and pesticide use.
Despite progress, challenges persist, with municipal officials reporting delays due to incomplete applications and logistical hurdles.
Many business owners have called for better communication and extended support to ensure full compliance.
Gauteng COGTA MEC Jacob Mamabolo noted that the new by-laws empower municipalities and law enforcement to crack down on non-compliance, strengthening public health and economic stability in township communities.
As the government prepares for the revised February deadline, Hlabisa reaffirmed the commitment to creating a safer, healthier, and more regulated informal sector.
“Working together, we can build a robust and equitable food ecosystem for all South Africans,” said Hlabisa.
The minister said the spaza shop registration drive marks a significant step in formalising informal trade, ensuring compliance, and stimulating local economies, ultimately benefiting communities across the nation.
Health Minister Dr Aaron Motsoaledi and Cooperative Governance and Traditional Affairs (COGTA) Minister, Velenkosini Hlabisa addressed the media on Wednesday about spaza shop registration drive. PHOTO: Eddie Mtsweni
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