Velenkosini Hlabisa says over 49k spaza shops & food handling stores applied to be registered on govt’s database! Efforts to regulate South Africa’s informal trading sector have gained momentum as over 49,000 spaza shops and food-handling businesses across the country have applied for registration on the government’s database.
However, according to Minister of Cooperative Governance Velenkosini Hlabisa, only 19,000 applications have been approved so far.
Speaking during a media briefing on Wednesday morning, Minister Hlabisa revealed that the government has decided to extend the registration deadline to the end of February 2025. This extension comes in response to ongoing challenges faced by business owners and authorities alike in meeting the original timeline.
Regulating the Informal Sector
The registration drive forms part of the government’s broader efforts to regulate the informal trading sector, which includes spaza shops and food-related businesses. This initiative aims to address public health concerns, improve compliance with safety standards, and create a more structured business environment.
Minister Hlabisa acknowledged the substantial number of applications received so far but noted that a significant portion of spaza shop owners had opted not to participate in the registration process.
“Those who have registered their businesses still need to undertake further processes to obtain their trading licenses,” Hlabisa said.
Inspections to Ensure Compliance
The process doesn’t end with registration. Owners of food-related trading businesses will need to undergo inspections by environmental health practitioners and other regulatory authorities to ensure their operations meet the necessary health and safety standards.
“These inspections are vital,” Hlabisa explained. “They will determine whether businesses are eligible to trade and whether they comply with food safety and hygiene regulations.”
The inspections are intended to safeguard public health following recent concerns about foodborne illnesses linked to some informal trading establishments.
Challenges in the Registration Process
Despite the progress made, the government faces several challenges in ensuring full compliance. Many spaza shop owners have raised concerns about the complexity of the registration process, while others have expressed skepticism about the benefits of formalizing their businesses.
“There is still resistance from some owners who either don’t see the need to register or are unwilling to comply with the additional requirements,” Hlabisa said.
This hesitation could stem from a variety of factors, including fear of increased regulation, costs associated with meeting compliance standards, or a lack of understanding about the process.
Support for Business Owners
To address these challenges, the government has pledged to provide support to business owners. Hlabisa emphasized that the extended registration period is not just about enforcement but also about giving business owners more time to understand and complete the necessary steps.
“This is not just about penalties or shutting down businesses,” Hlabisa said. “It’s about ensuring that we create an environment where informal traders can operate safely and sustainably, while also protecting the health of their customers.”
The government is also exploring ways to simplify the registration process and provide educational resources to help business owners comply with the regulations.
Impact on Public Health and Economic Growth
The regulation of spaza shops and food-handling businesses is expected to have a positive impact on public health by reducing risks associated with unsafe food practices. Additionally, formalizing these businesses could open up new opportunities for growth and access to resources, such as financial support and training programs.
However, experts warn that the success of this initiative depends on effective communication, consistent enforcement, and the ability to build trust with informal traders.
Looking Ahead
As the February 2025 deadline approaches, the government faces the dual challenge of encouraging more spaza shop owners to register while ensuring that the necessary inspections and compliance checks are carried out effectively.
With only 19,000 out of 49,000 applications approved so far, there is still a long way to go. Minister Hlabisa remains optimistic, emphasizing that this initiative is a crucial step toward creating a healthier, safer, and more organized trading sector in South Africa.
“This is about building a partnership between the government and informal traders,” Hlabisa said. “Together, we can ensure a better future for our communities and businesses.”
