President Ramaphosa warns unregistered spaza shops to comply or face action
President Ramaphosa warns unregistered spaza shops to comply or face action! President Cyril Ramaphosa has issued a stern warning to spaza shop owners, urging them to formalize their businesses by registering with the government.
Speaking during the Presidential Micro, Small, and Medium Enterprises (MSME) and Cooperatives Awards in Johannesburg on Friday, the president emphasized the importance of formalizing these small businesses to ensure safety and promote economic growth.
Tragic Food Safety Concerns Spark Government Action
The push for registration follows recent tragedies involving food-borne illnesses linked to spaza shops.
Over the past few months, more than 20 children have died after consuming contaminated food purchased from these outlets.
These incidents have heightened public concern and placed pressure on the government to take decisive action. Ramaphosa stressed the need for accountability and traceability, noting that formal registration of businesses is a crucial step in protecting public health and safety.
Government’s Call for Registration
President Ramaphosa called on spaza shop owners to move from informal operations to formal businesses by registering with the appropriate authorities. He urged compliance within the government’s set timeframe, warning that failure to do so would result in enforcement actions.
“We want them to stop operating informally and transition to formal businesses. We’ve given them a timeframe to comply. If they don’t come forward by themselves, we will be compelled to take action,” Ramaphosa stated.
Registration Is Not a Witch Hunt
Ramaphosa assured spaza shop owners that the registration requirement is not meant to target or harass them but is aimed at safeguarding communities. He explained that the process seeks to prioritize safety, quality control, and economic development.
“This is not a witch hunt,” he said. “It is about ensuring the safety of our communities and integrating small businesses into the formal economy.”
The Role of Small Businesses in Local Economies
The president acknowledged the critical role that spaza shops and other small businesses play in local communities. These businesses provide essential services, generate income, and contribute to local economic growth.
“Small businesses are the lifeblood of our communities,” Ramaphosa noted. “They play a vital role in providing goods and services and supporting the local economy. That’s why it’s important to bring them into the mainstream economy.”
Government’s Broader Plan for Small Businesses
The call for spaza shop registration forms part of the government’s broader strategy to empower micro, small, and medium enterprises. This includes providing support mechanisms, improving access to resources, and fostering an environment that encourages entrepreneurship.
By formalizing small businesses, the government aims to enhance their contributions to the economy while ensuring compliance with health and safety regulations.
Ensuring Community Safety and Economic Growth
Ramaphosa highlighted that formal registration would allow the government to monitor and support small businesses more effectively. It would also facilitate the implementation of safety standards, reducing the likelihood of incidents like the recent food contamination tragedies.
“We need to know the owners of these businesses and ensure they comply with health and safety standards,” the president said. “This is about protecting our children and everyone in our communities.”
The Deadline for Compliance
While Ramaphosa did not specify the exact deadline for registration, he made it clear that spaza shop owners must act promptly. The government is committed to ensuring that unregistered businesses transition into formal entities and will take enforcement measures against those that fail to comply.
A Call to Action
The president’s address underscores the urgency of formalizing informal businesses to safeguard public health and strengthen the economy. The government’s initiative serves as both a warning and an opportunity for spaza shop owners to become legitimate contributors to South Africa’s economic landscape.
As the registration drive continues, the government hopes to strike a balance between enforcement and support, ensuring that small businesses thrive while prioritizing the well-being of communities.
