ETHEKWINI NEWSFLASH

FOR IMMEDIATE RELEASE

10 DECEMBER 2024

 

To assist local spaza and tuck-shop owners with business registration and to ensure compliance, eThekwini Mayor Councillor Cyril Xaba spearheaded a successful registration blitz at the uMlazi M Community Hall today, 10 December.

 

The blitz drew a large crowd of spaza shop owners, eager to voice their concerns and to seek support. A key issue raised was the challenge of maintaining sustainable businesses, particularly following the COVID-19 pandemic, which has intensified competition.

 

The registration blitz aligned with President Cyril Ramaphosa’s 21-day registration directive and is part of the Municipality’s ongoing efforts to support local businesses. Mayor Xaba emphasised that eThekwini has been working diligently to transform township and rural spaza shops into commercially viable enterprises. A database of over 4 700 spaza shops highlights the sector's critical role in the local economy.

 

Mayor Xaba outlined several initiatives designed to empower spaza shop owners.

 

“From the database, over 347 tuck-shop owners have been trained and equipped with Point-of-Sale devices, enabling smoother operations and facilitating connections with banks and wholesalers. Furthermore, through collaborations with the provincial Department of Economic Development, Tourism and Environmental Affairs and the Department of Small Business Development, the Municipality has secured grants and micro-loans for spaza owners,” he said.

 

A notable achievement of these initiatives was the R20 000 grant awarded to 20 spaza owners in KwaMashu as part of the pilot Bulk Buying Programme launched in February this year. Additionally, 300 spaza owners who completed inventory management training received R15 000 worth of stock to help ensure business sustainability.

 

Mayor Xaba affirmed: "We recognise that bulk buying is key to profitability, and we are committed to continuing our support to ensure the competitiveness of spaza shops."

 

In November, 100 participants from the informal economy sector, including many tuck-shop owners, graduated from a one-year business skills development programme. They received a stipend during the course. The Municipality also facilitates access to well-maintained infrastructure, key services, and a platform for networking with financial institutions and industry leaders.

 

To ensure smooth registration and compliance, key stakeholders from the Business Licensing, Environmental Health, the Informal Economy, and the Metro Police departments were present at the blitz to guide spaza shop owners through the process. Since the initiative’s launch, over 2 500 spaza shop owners have applied for registration, with applications currently being vetted by relevant departments, including the Department of Home Affairs.

 

Mayor Xaba spoke firmly about the dangers of locals registering shops for foreign nationals. He warned locals against this practice as it was illegal.

 

Additionally, a public database of successfully registered spaza shops, including existing ones, will be available on the eThekwini Municipality website for transparency.

 

In the past quarter, over 30 compliance workshops and 60 multidisciplinary compliance operations have been held to assist spaza shop owners. The final registration blitz will take place at the Magaba Hall in Hammarsdale on 12 December.

 

Mayor Xaba concluded: "I urge all spaza shop owners to take advantage of these opportunities to ensure their businesses thrive in a regulated and sustainable manner."

 

ENDS

Issued by eThekwini Municipality’s Communications Unit