Only 128 foreign-owned spaza shops registered in Gauteng
Gauteng Finance and Economic Development MEC Lebogang Maile revealed on Sunday that only 128 foreign-owned spaza shops will be allowed to operate.
A total of 7,107 spaza shops were registered by foreign nationals living in the province.
Maile disclosed the final spaza shop registration numbers on Sunday, with Johannesburg recording the highest number of applications, and Ekurhuleni seeing the largest number of foreign national applications, totalling 2,543.
This registration push, which ended on Friday, follows President Cyril Ramaphosa’s directive to formalise all food-handling businesses following a series of deaths last year linked to foodborne diseases from spaza shop products.
READ MORE: Last day for spaza shop registrations
“Foreign nationals were required to provide valid documentation from the national Department of Home Affairs to operate a business in South Africa, including a valid business visa or work permit,” Maile said.
He further explained that, according to South African law, foreign nationals must invest a minimum of R5 million into an existing business or submit a business plan with evidence of the same capital contribution.
"Foreign nationals may establish a business of national interest to South Africa, as outlined in the Industrial Policy Action Plan, without a minimum capital requirement,” he added.
At the end of the registration period, 17,617 spaza shop and food-handling facility applications were received across Gauteng, with 4,610 Certificates of Acceptability issued.
The MEC highlighted that the approval process involved comprehensive inspections and documentation verification across more than 90 active registration sites.
“Other factors that have impacted the number of approvals include the submission of fraudulent documentation, delays in the verification of foreign nationals by the national Department of Home Affairs, incomplete documentation, the contravention of building regulations on the part of business owners and the high cost of business licences.”
In response to concerns about market imbalances, Maile stressed the need for foreign nationals to fully comply with South African laws when operating businesses.
“Working with relevant departments and law enforcement, the Gauteng provincial government has cracked down on illegal trade and undocumented foreign nationals in townships, and this will continue even after the registration deadline,” Maile stated.
Additionally, 15,478 spaza shops and food-handling facilities were found to be non-compliant, with 498 immediately closed.
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