Spaza shop registration: Applicants hampered by land-use regulations

Spaza shop owners in Gauteng have continued to register their businesses to meet government’s compliance push.

As the original deadline approached, thousands more business owners gathered their documentation to seek approval from the Department of Corporate Governance and Traditional Affairs (Cogta).

However, Cogta Minister Velenkosini Hlabisa on Wednesday extended the registration deadline to 28 February 2025, granting owners and the provincial departments a reprieve.

Only half of application forms return

Gauteng MEC for Finance Lebogang Maile welcomed the extension, saying it was an opportunity to expedite the work already being done by municipalities in the province.

As of the first week of December, the department had issued 13 616 registration forms, with that jumping to 21 172 by 19 December.

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However, only 10 389 of those forms had been returned for approval across the province’s municipalities.

Additionally, 2 677 of those submitted applications were returned to the business owners because the documentation was incorrect.

Non-South African registrations accounted for 2 818 applicants.

For those who had already fallen foul of the compliance regulations, 541 spaza shops had been closed, with 437 environmental health practitioners overseeing compliance in Gauteng.

Problems in obtaining documentation

Maile said business owners were struggling to obtain business licences and land-use applications from municipalities.

Entrepreneurs operating in informal settlements have found it especially difficult as the areas where they operate are not officially demarcated because the township proclamation is not yet completed.

“In some cases, the properties in question may be agricultural holdings on which, by law, townships cannot be established,” stated Maile.

“In this instance, reverting the property to farmland is a prerequisite preliminary step,” he added.

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Land proclamation is an extensive process, involving land surveyors, civil and electrical engineers, environmental impact assessments and traffic impact assessments.

To overcome this obstacle, the issuing of interim permits is being considered by the department.

Shops built over critical infrastructure

Zoning regulations in areas that have been proclaimed are also providing a challenge for business owners and the department.

Maile said many structures had been built without approval, with others having been built on critical municipal infrastructure.

“This is a serious issue that has significant implications not only for spatial and economic development in the province but for the safety of our communities as well,” stated Maile.

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Notices of correction have been issued to the relevant business owners and should the correction not be adhered to or be possible, the structure will be demolished.

“It is important to state that our approach to this matter is developmental,” said Maile.

“This means that demolishing structures is our last resort as we recognise the financial and economic implications of such an intervention,” the MEC explained.

Maile reiterated that compliance with the law by business owners was non-negotiable.

“Our insistence on compliance is based on the objective of building an economy that grows in the hands of South African communities,” he concluded.

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