‘No compromise’ – All foreigners must prove R5 million investment to register spaza shop

MMC for Economic Development and Spatial Planning in the City of Tshwane, Sarah Mabotsa, says all foreign nationals will be required to prove a R5 million investment to successfully register spaza shops.

Spaza shop owners are under pressure to register their businesses following President Cyril Ramaphosa’s directive on Friday, 15 November.

Ramaphosa announced that all spaza shops must be registered with their respective municipalities within 21 days.

ALSO READ: Another child dies in Soweto after eating snacks from spaza shop

The directive comes amid a rising number of child deaths linked to food-borne illnesses caused by items purchased from spaza shops.

“Any shop not registered within 21 days and that does not meet all health standards will be closed,” Ramaphosa said.

In compliance with the directive, the City of Tshwane has launched a citywide spaza shop registration outreach programme to ensure adherence to municipal health, fire safety and town planning by-laws.

ALSO READ: Ramaphosa warns of action if spaza shops don’t register [VIDEO]

Mabotsa urged all spaza shop owners and food-handling businesses to apply for registration at the city’s designated regional offices and centres.

She emphasised that all requirements must be met, with no exceptions.

Spaza shop registration requirements

• Appropriate zoning certificate;
• Identity document for residents of South Africa or Home Affairs documents for foreigners (certified copies);
• Registration with the Companies and Intellectual Property Commission (CIPC);
• Copy of title deed, lease agreement or proof of residence;
• Affidavit and certified copy of identity document of stand or erf owner if zoned as Residential 5;
• Menu, in the case of a restaurant;
• Tax clearance certificate (South African Revenue Service (SARS) documents); and
• For foreigners nationals, proof of R5 million investment into a South African business and business visa.
  

Once the registration process is complete, the City of Tshwane will issue licences or permits to qualifying spaza shops and food-handling businesses.

Is R5 million for all foreign nationals?

In terms of the Immigration Act, 2002 (Act 13 of 2002), all foreign nationals who want to do business in South Africa are expected to provide proof of a R5 million investment, in terms of a bank statement, into an existing business in South Africa and have a valid business visa.

According to Mabotsa, the R5 million investment applies to all foreign nationals, regardless of visa type.

“The Immigration Act covers all foreign nationals. Remember those who seek asylum, there is a requirement that they should be working in South Africa, so it’s some of the things we are looking at,” said the MMC.

ALSO READ: Another child dies and three others hospitalised in Soweto after allegedly eating contaminated snacks

While the registration process is open to everyone, Mabotsa told The Citizen that it is only the first step.

After the 21-day period, the city will assess whether applicants meet all the requirements.

#SpazaShopRegistration Requirements for registration. pic.twitter.com/V5eyfv0Bvb

— City of Tshwane (@CityTshwane) November 22, 2024

Those who fail to meet the criteria will not be able to register their businesses.

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“But now, because it’s a registration process that we have opened up, there is a criteria that we’re looking at that people must comply with to be registered. They must be compliant.

“We will have the second phase where we will check if each and every person has qualified. All those requirements are compulsory and everyone must meet them.

“At the moment, we’re opening up for registration and we will go to the second phase after the 21 days, where we will do the assessments of who qualifies.”

Opportunities for South Africans

Foreigners who fail to meet the requirements will create opportunities for South Africans to establish businesses, Mabotsa said.

“We must not shy away from giving South Africans an opportunity to own businesses.

“With this one, we’re not going to be apologetic about it. We will check the requirements and whoever meets them is all good. For those who don’t qualify, we will give their opportunities to South Africans.

ALSO READ: Local leaders oppose the registration of foreign-owned spaza shops

“We are also looking at legal opinion because we are trying to make sure that we prioritise the people of Tshwane. As the administration, if we don’t do it, who else is going to do it?”