Joburg’s Public Safety directorate says township economy needs urgent reforms

JOHANNESBURG - Johannesburg’s Public Safety directorate said the township economy needs urgent reforms to address challenges faced by small businesses.

The comments come after the death of five children in Naledi, Soweto, on Sunday.

It’s believed they fell ill after consuming snacks from a local spaza shop, sparking fresh questions about the regulation of the local economy.

Across the province, policymakers are battling to get a handle on unregistered and uncontrolled spaza shops.

In September, the Gauteng Department of Economic Development and Finance launched a new campaign bolstering efforts to ensure business compliance in townships, informal settlements, hostels, and CBDs.

Johannesburg’s Public Safety MMC, Mgcini Tshwaku, said the issue runs so deep that only an overhaul or reset could help address the problem.

"Actually, if it were up to me, I would say close [all the spaza shops in the city], relicense and relook at the model."

He believes stricter regulations are needed to issue operating licences and by-laws to monitor compliance in all municipalities.

The billion-rand township economy remains critical for the country’s overall economy, with an estimated R150 billion in cash spent at the estimated 150,000 spaza shops every year.