ActionSA has proposed regulations aimed at eliminating the ownership of spaza shops by foreign nationals, ensuring that 100% of these businesses are operated by locals.
The party revealed on Monday that it is putting forward a members’ bill called the #Spaza4Locals Reserved Sectors Bill, that aims to amend and tighten regulations governing this sector.
The bill is designed to ensure that the local economy benefits locals and that operations within spaza shops are strictly governed to comply with health and hygiene standards.
ActionSA’s move comes after Co-operative Governance and Traditional Affairs Minister Velenkosini Hlabisa announced the gazetting of tough measures aimed at regulating the township economy. The draft by-law will give municipalities powers to conduct background checks including citizenship status, issue written warnings and cancel business licences.
Party leader Herman Mashaba, KwaZulu-Natal provincial leader Zwakele Mncwango, and MP Lerato Ngobeni were in KwaMashu on Monday, where they addressed the issue.
Ngobeni stressed that spaza does not only mean the shops selling convenience items, but they are referring to the entire local economy.
Ngobeni stated that the #Spaza4Locals Reserved Sectors Bill is not merely a policy proposal – it is a mission to create a fair, prosperous South Africa where township businesses put South Africans first.
“Every responsible government must prioritise its citizens!” she asserted.
She highlighted that the township economy is in dire need of reform, adding that the party has been leading the #Spaza4Locals Campaign to drive home the message of the necessary reforms.
The #Spaza4Locals Campaign, she said, “aims to transform township economies by empowering South African entrepreneurs, tightening regulations, and purging illegal trade. With R200 billion in economic activity at stake, we are driving amendments to the township economy by-laws to secure ownership for South Africans, ensuring financial returns stay within our borders.”
She described spaza shops as a lifeline in many townships, providing essential goods while fostering local commerce.
However, the influx of foreign ownership and unchecked criminal syndicates have endangered the vibrancy of these businesses.
“For too long, the government has allowed township economies to languish under inadequate and poorly enforced laws. Current regulations fail to protect local business owners, leaving them vulnerable to illegal trade and exploitation. ActionSA’s amendments introduce a transparent and enforceable framework, bridging regulatory gaps and creating a fair market for South Africans,” Ngobeni said.
Proposed amendments to protect and promote local businesses include:
- 100% guaranteed South African ownership in high-density township areas.
- Enhanced compliance for ownership and registration: Proof of citizenship will be required to register spaza shops, levelling the playing field.
- Stricter penalties for illicit trade: Counterfeit goods will be banned immediately, and those involved in criminal trade will face hefty penalties.
- Mandatory skills development and business support: Municipalities will partner with development agencies to provide essential resources.
- Public health standards: Spaza shops must adhere to strict health certifications, ensuring community safety.
Mashaba stated that his party will deal decisively with this matter, saying it cannot be that the country is faced with the highest unemployment rate in the world while opportunities are being taken by people from other countries.
“This political issue requires intervention, and we will leverage our political influence to address it.”
Mncwango pointed out that the party’s programme of action is not about hating foreigners. “We love South Africans; this is a man-made problem,” he said.
Elliot Gama, a local spaza shop owner, spoke about the difficulties they face due to intense competition from foreigners. “This is a difficult problem that we have not been able to find a solution to,” he said.
He shared that after searching for a job in 1996, he started the tuckshop and received a lot of support from the community. However, that changed when foreign nationals moved in, causing him to lose the bulk of his customers.
“It would be understandable if they were trading in areas that we were not skilled in, but they are selling bread and sugar – something that I am also doing.
How am I expected to survive? I live here. This is my country.
“If I run out of food and lose everything, what will happen to me? The foreigners, if they see that this country can no longer sustain them, can always move back to their countries of origin and carry on their business there, whereas I cannot go to another country,” he lamented.