Buffalo City Metro
Out of nearly 1,000 applications submitted, only 100 spaza shop owners have been approved to continue operating their businesses in the Buffalo City Metro (BCM).
City spokesperson, Samkelo Ngwenya, explained that many applicants are foreign nationals with asylum-seeking status, which complicates the process as businesses in South Africa must have valid visas or permits.
The rush to register informal businesses comes after President Cyril Ramaphosa’s call for action following several child deaths linked to unsafe snacks sold by informal traders. Spaza shop owners were given a 21-day deadline to register their businesses, which ends on Tuesday, 17 December.
Ngwenya reported that around 1,000 applications have been received since the President's appeal on November 16. He estimates that about 2,000 informal shops operate in the region, with over 500 shut down for non-compliance with regulations since last year.
A key issue raised by the city is the citizenship status of many applicants. "Most applicants are foreign nationals using asylum-seeking identification, which makes it difficult for the city to accept their applications, as business permits are typically issued to individuals with valid visas," Ngwenya said. He added that the Metro is raising this concern on intergovernmental platforms to find a solution.
Another challenge is the increasing number of spaza shops run from containers in residential yards. During a multi-department committee meeting on Friday, it was revealed that current metro documentation does not allow containers to be used for business purposes. “There is a need for a policy and council resolution to address this issue in the by-laws,” Ngwenya said.
In response to concerns that foreign nationals have dominated spaza shop businesses, the metro is working to ensure that at least 50 spaza shops in the region are owned by local youth by next year. Ngwenya mentioned that 22 young people have already been trained and are preparing to apply for funding in January.
BCM has been conducting joint operations since 2022 to enforce compliance with regulations, particularly as the number of spaza shops has rapidly increased. Many of these businesses have been operating without the necessary permits, prompting the Metro to provide clear guidelines on how to comply.
To meet compliance, spaza shops must have:
As of this week, the BCM has processed the following applications:
Ngwenya urged spaza shop owners to meet the registration requirements, warning that those who fail to comply risk having their businesses shut down.
