This week, the Inkatha Freedom Party (IFP) lauded President Velenkosini Hlabisa, the Minister of Cooperative Governance and Traditional Affairs, for implementing a landmark by-law that promises to invigorate South Africa’s township economies.
The Standard Draft By-Law for Township Economies, released on Monday, is designed to cultivate small businesses by providing a structured, supportive, and inclusive business environment.
Hlabisa's department issued the by-law in accordance with the Local Government: Municipal Systems Act of 2000, underscoring a commitment to transform townships into vibrant economic hubs. The minister articulated that this initiative aims not only to foster economic inclusion and job creation but also to empower local communities to thrive.
“The new by-law is a bold statement of CoGTA’s commitment to transforming townships into vibrant economic hubs that provide sustainable opportunities for residents. This regulation is designed to harmonise township business ecosystems by providing standardised norms and facilitating easier entry and operation for formal and informal businesses,” the department noted in its announcement.
Central to the by-law is the enhancement of business freedom. Individuals possessing a business license will now have the ability to operate within designated areas, regulated by local quotas that prioritise equitable opportunities for South African citizens and residents. Hlabisa pointed out that this aligns with the constitutional right to freedom of trade, encouraging entrepreneurial initiatives directly impacting township vitality.
The by-law delineates specific business zones, empowering municipalities to establish tailored environments for retail, industrial, and mixed-use enterprises.
Furthermore, it focuses on simplifying business operations through tailored support structures such as permit registration procedures and designated trading spaces, streamlining interactions between entrepreneurs and local government.
The introduction of an efficient permit and registration system aims to provide accessible guidelines for businesses, both offline and online.
Municipal officials are tasked with assisting applicants to ensure timely approvals, thereby facilitating smooth operations for both new and established enterprises.
Moreover, the legislation addresses critical safety and compliance concerns, mandating that all business activities align with public health regulations. Regular inspections and community awareness campaigns will be instrumental in upholding stringent standards, ensuring both entrepreneur safety and community welfare.
“The new standard draft by-law introduces an efficient permit and registration system that provides clear guidelines for businesses, including both physical and online access to application forms,” Hlabisa explained, emphasising it as more than just a regulatory tool. “It reflects our vision for township economies as key contributors to South Africa’s growth.”
As part of an inclusive growth strategy, the new legislation will also regulate foreign-owned businesses operating in townships, ensuring a balance between citizens' rights to do business and the consumer's right to a safe environment. Additionally, it empowers municipalities to establish standards that promote workforce quotas specifically for South African citizens and permanent residents.
If the IFP's responses are any indicator, there is much optimism surrounding these developments. IFP spokesperson Mkhuleko Hlengwa heralded the by-law as a critical milestone in addressing challenges within South Africa's informal economy, particularly the spaza shop sector.
“This milestone addresses the crisis of contaminated/expired food in local spaza shops, which tragically claimed young lives. By prioritising South Africans' safety, President Hlabisa upholds the IFP's manifesto commitment to putting citizens first,” Hlengwa remarked.
The Star