VOSLOORUS, Ekurhuleni – The City of Ekurhuleni has reaffirmed its commitment to the local township economy by handing over essential stock to Mazwi Kubheka, a local spaza shop owner facing severe sector challenges. Executive Mayor Nkosindiphile Xhakaza led the support initiative in Vosloorus, aiming to bolster small business activity and aid entrepreneurs who have been targeted by criminal elements.
Addressing Vulnerabilities and Criminal Targeting
The visit follows a harrowing ordeal for Kubheka, who was kidnapped for nearly a month. His disappearance sparked widespread protests and brought national attention to the extreme vulnerabilities, intimidation, and extortion faced by small business operators in the area. While Mayor Xhakaza declined to comment on the specific criminal elements of the case—noting that such illegalities fall under the jurisdiction of the South African Police Service (SAPS)—he emphasized that the incident underscores the critical need for stricter regulatory compliance.
By-Law Enforcement and Regulatory Blitzes
To safeguard the sector, the municipality has been conducting rigorous by-law enforcement blitzes across its townships. These operations focus on ensuring environmental health, food safety certifications, proper land use management, and valid business licenses for all informal traders and hawkers. According to the Executive Mayor, these measures are designed to ensure accountability, prevent the distribution of illicit substances, and protect the community.
Tackling Exploitation and Permit Irregularities
During the discussion, Mayor Xhakaza addressed concerns regarding the exploitation of local business spaces by foreign nationals. He highlighted that regulations require foreign nationals to demonstrate a R5 million capital injection to trade within the informal township economy. However, the city has identified schemes and the incorrect use of asylum seeker permits that appear to bypass these requirements, leading to the exploitation of local entrepreneurs.
Comprehensive Support for Local Entrepreneurs
In response, the city has rolled out a comprehensive support program targeting 28 South African-owned townships, with a specific focus on youth. This initiative, which originated from a compliance visit to Kubheka’s shop on May 27, goes beyond merely replacing stock; it includes the provision of point-of-sale equipment and essential business training. The long-term strategy encourages locals to utilize their own spaces rather than subleasing them, supported by stricter enforcement of building controls.
Aligning with National Funding Opportunities
Furthermore, the local municipality is working to align its compliance efforts with the national Department of Small Business Development’s R500 million support campaign for local spaza shops. By ensuring that local operators are fully compliant and possess the necessary trading permits, the city aims to help them access these vital government funding opportunities. The municipality is also exploring ways to ease land-use requirements, such as simplifying the consent use process for residents looking to convert their garages into formal trading spaces.
