Summary of the By-laws:
Aimed at promoting inclusive economic development within South African townships. These by-laws, published by the Department of Cooperative Governance, focus on establishing norms and standards for township-based businesses, both formal and informal. Key objectives include facilitating business activities, ensuring compliance with health and safety standards, providing infrastructure, and supporting small businesses through training and mentorship. The by-laws also detail the registration process, permit regulations, and enforcement measures, with specific provisions for prohibitions and restrictions to maintain public order and safety.
Key features of these By-laws:
- Objectives and Scope: The by-laws aim to promote inclusive spatial and economic development in townships, harmonise the township business ecosystem, raise awareness of relevant laws and regulations, and support the growth of small businesses.
- Freedom and Regulation of Business Activities: Citizens, permanent residents, and foreign nationals with business licenses can engage in business activities within a municipality's jurisdiction. Municipalities can set quotas for the proportion of businesses to be owned by foreign nationals and require that at least 60% of employees in such businesses be South African citizens or permanent residents.
- Designated Business Areas: Municipalities are responsible for promoting commercial and industrial activity in townships by demarcating business areas and sites. They can extend, reduce, or disestablish these areas following public consultation and compliance with the Spatial Planning and Land Use Management Act.
- Registration and Permitting: Businesses must register with the municipality or other relevant authorities, and compliance with municipal land use schemes is required. A registration card or permit will be issued, which must be displayed and available for inspection. Unregistered businesses will be required to apply for registration within 30 days of notification.
- Enforcement and Penalties: Authorised municipal officials are responsible for monitoring and enforcing the by-laws. Offences include contravening by-law provisions, failing to comply with notices or instructions, and obstructing officials. Continuous transgressions may result in the impoundment of business equipment, which can be released upon payment of a fee. Municipalities must ensure that their other by-laws align with these new by-laws within six months of promulgation.
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