A public notice was published in The Government Gazette on the 31st of May 2024 by Ms Thembi Nkadimeng, Minister of Cooperative Governance and Traditional Affairs, on the Standard Draft By-Laws for Township Economies. These by-laws will be added to the current laws in place for business owners and is meant to encourage inclusive economic growth within South African townships.
A summary of these by-laws, focus on setting guidelines for township-based businesses, both formal and informal. Key points include simplifying 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 rules, and application measures, with full requirements for prohibitions and restrictions to maintain public order and safety.
Township business owners are made up of citizens, permanent residents and foreign nationals with business licenses who engage in business activities within a municipality’s jurisdiction. A municipality may, based on its developmental objectives, determine quotas on the percentage of the businesses within specific categories of the business, to be owned and operated by foreign nationals. In defining the quotas, municipalities must ensure amongst others that at least 60% of the total staff complement employed in the business operations are South African citizens or permanent residents in line with Regulation 14(2) (b) of the Immigration Regulations of 2014. Therefor a business owned by a foreign national should employ South African residents to make up 60% of their staff.
Municipalities are responsible for helping commercial and industrial activity in townships by establishing business areas and sites. They can extend, reduce, or disestablish these areas following public discussion and agreement with the Spatial Planning and Land Use Management Act.
The permitted municipal officials in the townships will be responsible for monitoring and applying the by-laws. Failure to comply with notices or instructions given by these municipal officials and continuous lapses can result in the impoundment of business equipment, which will only be released once a fine is paid.
Through the launch of these standards the aim is to complement the eco-system within these municipal regions.
We live in a country where democracy is seen as the heart of change and renewal. Have your say and raise your voice towards the Standard Draft By-Laws for Township Economies before the 30th of June 2024.
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