Government Introduces Simplified Permitting for Township Economies.

Johannesburg: The government has unveiled a new standard draft by-law aimed at fostering economic growth within township economies by simplifying the permitting and registration process for spaza shops. This initiative is designed to create an enabling environment that supports economic inclusion, job creation, and community empowerment.

According to South African Government News Agency, the by-law, issued in line with the Local Government: Municipal Systems Act of 2000 by Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa on 7 November 2024, is more than just a regulatory tool. It reflects a vision for township economies as key contributors to South Africa’s growth. Through inclusive, streamlined governance, this initiative lays a foundation for sustainable economic activity in historically underserved areas, empowering individuals to participate meaningfully in the economy.

The by-law signifies a commitment to transforming townships into vibrant economic hubs, providing sustain
able opportunities for residents. It harmonizes township business ecosystems by standardizing norms and facilitating easier entry and operation for both formal and informal businesses, supporting businesses with resources, including permit registration processes and designated trading spaces.

Key features include enhanced freedom for business activities, allowing individuals with a business license to operate within designated areas. Designated business zones will be established, creating spaces specifically for retail, industrial, and mixed-use enterprises. Additionally, municipalities will support businesses through workshops, training, and access to infrastructure and markets, promoting operational capacity and compliance.

The by-law introduces a simplified permit and registration system, providing clear guidelines for businesses with both physical and online access to application forms. Municipal officials will assist applicants, ensuring timely approvals and smooth operations. Furthermore, all business
activities must align with public health and safety regulations, with regular inspections and public awareness campaigns ensuring compliance.

Recognizing the economic significance of townships, the by-law emphasizes skills development, mentorship, and market access initiatives to support thriving businesses. CoGTA is committed to engaging communities and stakeholders in implementing the by-law, ensuring its benefits reach every corner of South Africa’s townships.