Ramaphosa: spaza shop registration not punitive
President Cyril Ramaphosa has clarified that the compulsory registration of spaza shops is not intended to penalize small businesses but to ensure public safety and support economic growth.
He spoke at the Presidential Micro, Small and Medium Enterprises (MSME) and Cooperatives Awards at the Gallagher Convention Centre in Johannesburg on Friday.
The President reiterated the importance of formalising small enterprises.
Last week, Ramaphosa issued a directive requiring all spaza shops and food-handling facilities to register with local municipalities within 21 days.
This measure follows a surge in food-borne illnesses linked to informal traders, which has claimed 22 lives and resulted in over 800 reported cases across the country.
“We seek to make sure that they are regulated so that we know who they are, where they operate, and that they are running their businesses properly within the laws of the country,” said Ramaphosa.
The President explained that the registration initiative is designed to help informal traders transition into the formal economy while ensuring health and safety standards adherence.
“If they don’t come forward, we will be forced to take action. It has been pleasing to see that many are already registering. We will ensure they comply with all regulations and register properly,” Ramaphosa added.
He emphasised that the process would also empower local governments to enforce public health standards more effectively.
"The recent spate of food-borne illnesses that have been linked to spaza shops and informal traders in townships has thrown into sharp relief issues of regulation, health and safety.
At the same time, the issue has highlighted the critical role small businesses play in communities, providing much-needed services and supporting local economies.
That is why it is so important to bring small businesses into the mainstream of the economy, and that we provide the necessary support for them to do this," said Ramaphosa.
Boosting MSMEs for Economic Growth
Ramaphosa further highlighted the government's commitment to small businesses, describing MSMEs and cooperatives as pivotal to economic growth and job creation.
"Whether they are small businesses in townships or cooperatives in rural areas, whether they are well established or just starting out, these businesses are integral to the future of our economy.
“The broad range of the industries represented in these awards showcases the dynamism and versatility of this sector.
“As years go by, our finalists include innovators, designers, tech-pioneers, consultancies, farmers, financial services providers and so much more.
This should dispel misconceptions about small businesses fitting a particular mould, being confined to particular localities or industries, or about their abilities to operate at scale," he said.
To meet job creation targets, the government plans to double the number of MSMEs to 5.8 million.
This will be achieved through the newly-established Small Enterprise Development Finance Agency.
This agency, formed through a merger of SEFA, SEDA, and the Cooperatives Bank Development Agency, has already disbursed R730 million, with significant investments in township (R101 million) and rural enterprises (R261 million).
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