By Lehlohonolo Lehana.
Minister of Corporate Governance and Traditional Affairs (Cogta) Velenkosini Hlabisa gazetted a draft by-law aiming at transforming townships into vibrant economic hubs.
Informal traders in economically underdeveloped areas have been central to the debate around food poisoning which has claimed the lives of at least 20 children in the last few months.
Cogta’s draft is aimed at “transforming townships into vibrant economic hubs” through a plan “to harmonise township business ecosystems”.
The by-law has a heavy focus on foreign ownership, allowing the government to set quotas for the number of South African-owned businesses and staff employed by foreigners.
The draft clearly defines a foreigner as, “an individual who is neither a South African citizen, nor a permanent resident, but is not an illegal foreigner in terms of the Immigration Act 13 of 2002”.
Fixing the number of businesses within a specific category that may be owned and operated by foreigners will also be permissible.
“In determining the quotas a municipality must ensure, amongst others, that a proportion of the total staff employed in the business are South African citizens or permanent residents in line with all relevant legislation,” clause 3.3 of the draft states.
The gazetted draft places an emphasis on municipalities developing spatial and economic objectives for townships.
The draft will also cover safety and compliance assurance and inclusive growth strategy.
“The by-law mandates that all business activities align with public health and safety regulations. Regular inspections and public awareness campaigns will ensure that township businesses uphold the highest standards, protecting both entrepreneurs and the communities they serve.”
Hlabisa said the by-law was more than just a regulatory tool.
“It reflects our vision for township economies as key contributors to South Africa’s growth. Through inclusive, streamlined, and supportive governance, this initiative lays a foundation for sustainable economic activity in historically underserved areas, empowering individuals to participate meaningfully in the economy,” the Minister added.
The full gazette can be accessed at https://www.cogta.gov.za/index.php/docs/local-government-municipal-systems-act-2000/.