JOHANNESBURG, Gauteng — The debate surrounding spaza shop registration and regulatory compliance in South Africa has intensified, highlighting significant challenges for both local and foreign business owners. Following recent unrest and food safety incidents, industry leaders and food safety consultants are pointing to severe municipal red tape as a primary barrier to legal operation.
The question of who can legally operate an informal food business in the country has dominated headlines. The issue flared following incidents where unsafe food led to the deaths of children, and again after the June 30 marches against undocumented migrants, which were followed by the looting of foreign-owned shops.
The National Black Business Caucus has raised significant concerns regarding the sector, noting that many South Africans are failing to register their spaza shops due to excessive red tape and complicated municipal processes. The Caucus was responding to widespread reports that both foreign nationals and South African citizens are not adhering to licensing and health compliance regulations. Representatives emphasize that compliant businesses struggle to compete against unregistered, non-compliant shops that operate outside the rules.
To clarify the legal requirements, ASC Food Safety Consultants, an organization assisting food businesses with compliance, outlined the necessary steps for both foreign and local nationals. According to ASC, the first requirement is possessing a valid permit that explicitly allows the holder to trade or open a business in South Africa, as not all permits grant trading rights.
The second crucial requirement is a Certificate of Acceptability, a permit issued by municipalities only after a physical inspection. ASC explains that obtaining this certificate requires submitting valid identification—either a South African ID or a foreign permit—to the local municipality. The mandatory inspection checks compliance with Regulation R638 of the Foodstuffs Act, which is enforced by municipalities alongside the departments of health and environment. Regulation R638 mandates strict adherence to pest control, waste management, and personal hygiene for food handlers.
On the ground in Gauteng, foreign national spaza shop owners spoke on condition of anonymity regarding their compliance status. One owner, who stated he is on an asylum seeker permit—a document that allows foreign nationals to trade if municipal processes are followed—claimed to possess a shop permit but was unable to produce it when requested.
Other foreign owners admitted to lacking the proper paperwork but emphasized their need to survive and support their families. They explained that they fled war in their home countries and rely on the income to help their parents, arguing that they cannot simply restart their lives back home. Addressing accusations of taking jobs, these foreign business owners maintained that they did not take existing businesses from South Africans. One owner, who has been in the country for over 18 years, stated that he built his business with his own money in a previously empty space.
South African spaza shop representatives echo similar sentiments regarding the lack of registration. They attribute the non-compliance among locals to the high costs and slow, arduous processes required by municipalities and government departments. Many desperate entrepreneurs start operating without full compliance simply to get their businesses running. Furthermore, representatives argue that while non-compliance is a factor, the larger issue is a lack of adequate government support for black-owned businesses.
Despite the challenges, ASC Food Safety Consultants reports a surge in foreign national-owned businesses seeking assistance to become fully legal. This increase in compliance efforts comes in the direct aftermath of the recent looting and subsequent government crackdowns on unregistered informal traders.
