Gauteng Economic Development MEC Lebogang Maile has issued a bold call to action, urging South Africans to stop registering spaza shops on behalf of foreign nationals. His remarks spotlight an often-overlooked issue in local entrepreneurship, where loopholes in business registration laws are being exploited, to the detriment of fair competition and lawful economic activity.
Maile warned that foreign nationals wishing to operate businesses in South Africa must comply with stringent legal requirements. According to the Department of Home Affairs, they must either invest a substantial sum of R5 million into an existing business or present a comprehensive business plan backed by proof of the same capital contribution. These requirements are designed to ensure that foreign-owned businesses contribute meaningfully to the country’s economy and align with South Africa’s national interests.
“This re-registration process is not just about paperwork; it’s about restoring order and ensuring the integrity of our economy,” Maile emphasiSed. “People who flout these regulations will face the full force of the law. But enforcement is only one part of the solution. We must also educate the public so they understand the risks and consequences of facilitating illegal business practices.”
Acknowledging the challenge of curbing misconduct, Maile added, “You can’t stop people from being mischievous, but by creating awareness and empowering citizens with the right information, we can prevent many from falling into these traps.”
The re-registration initiative aims to level the playing field for all entrepreneurs while sending a clear message that underhanded dealings will not be tolerated. As Gauteng takes this decisive step, the focus remains on fostering a business environment that is both fair and compliant with South Africa’s laws.
Listen to the audio below:
Source: SABC News
