Thousands of SPAZA shops closed after missed registration

15 478 non-compliant spaza shops face closure, and government reiterates there will be no exceptions/extensions …

More than 15 000 spaza shops have been forced to close after being declared illegal. But is there more behind the story? Image: File

Spaza shops all across South Africa had until last week Friday 28 February 2025 to register. However, Gauteng MEC for Finance and Economic Development Lebogang Maile confirmed this week that tens of thousands of spaza shops did not comply in time. And they will therefore be forced to close their doors, reports The Citizen.

The South African spaza shop registration drive came about after 24 food poisoning incidents were recorded last year. As a result, provincial authorities wanted to clamp down on hazardous and expired foods being sold to children. Maile explained that 17 617 registration applications were submitted and 29 116 inspections of existing spaza shops were conducted. Roughly 15 000 spaza shops found to be non-compliant and 498 so bad they were closed with immediate effect.

NO EXTENSION FOR SPAZA SHOPS

Government also wants to tax and keep track of informal traders in the townships. Image: File

Furthermore, Minister Velenkosi Hlabisa of Cooperative Governance and Traditional Affairs (COGTA) says there will no be an extensions or exemptions to spaza shop owners, reports IOL. As The South African reported, however, many spaza shop owners expressed concerns about registration. They argued the period was too short and the application process too difficult. Nevertheless, Minister Velenkosi said there was more than enough time and any spaza shop operating without the necessary paperwork will be closed, and the owner charged for operating illegally.

As part of nearly 30 000 inspections, officials advised owners who had unfinished paperwork to go back to registration centres to complete their applications fully. But many argue the registration drive was a means to limit foreign ownership of shops. The department noted that 7 107 registration applications had come from foreign nationals.

OWNERS WERE ADVISED

spaza shops — Thandi Mkhabela is a chairlady of the Save Act, an informal savings club known as a stokvel. Image: REUTERS/Siphiwe Sibeko

“From the onset, we appreciate the limitations of communication and the fact that we cannot just use social media. We must also go to the people and make inspections. We have also seen a number fraudulent documents and delays in the verification of foreign nationals by the Home Affairs. Any incomplete documentation includes the contravention of building regulations and business licences,” stated Maile. In regard to high-cost business licences, he said government was exploring ‘various mechanisms’ to support locally owned and complaint spaza shops.

DO YOU THINK THIS WAS AN EXERCISE IN XENOPHOBIA?

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