Government has introduced a new standard draft by-law for township economies, which offers a simplified permitting and registration process.
The move is aimed at creating an enabling environment for small businesses in townships; supports economic inclusion, job creation and community empowerment.
The by-law was issued in accordance with the Local Government: Municipal Systems Act of 2000 by Minister of Cooperative Governance and Traditional Affairs (COGTA), Velenkosini Hlabisa, on 7 November 2024.
"We are excited about this by-law as it is more than just a regulatory tool. It reflects our vision for township economies as key contributors to South Africa's growth.
"Through inclusive, streamlined, and supportive governance, this initiative lays a foundation for sustainable economic activity in historically underserved areas, empowering individuals to participate meaningfully in the economy," the Minister said earlier this month.
The new by-law is a statement of the department's commitment to transforming townships into vibrant economic hubs that provide sustainable opportunities for residents.
"This regulation is designed to harmonise township business ecosystems by providing standardised norms and facilitating easier entry and operation for both formal and informal businesses.
"It supports businesses with tailored resources, including permit registration processes and designated trading spaces, ensuring streamlined operations within municipal jurisdictions," the department said.
Key features of the by-law include:
- Enhanced freedom for business activities. Any individual with a business license may now conduct business within designated areas, subject to local quotas that ensure equitable opportunities for South African citizens and residents. This regulation aligns with the Constitutional right to freedom of trade, supporting entrepreneurial efforts that contribute to township vitality.
- Designated business zones. Municipalities are empowered to establish business zones, creating spaces specifically tailored to retail, industrial, and mixed-use enterprises. This targeted approach ensures an efficient use of space, aligning township development with broader spatial planning goals to attract investment and infrastructure improvements.
- Business support and capacity building. To further support township businesses, municipalities will facilitate workshops, training, and access to essential resources such as infrastructure and markets. This proactive approach helps small business owners improve operational capacity, while also promoting compliance with relevant laws and standards.
- Simplified permitting and registration. The new standard draft by-law introduces an efficient permit and registration system that provides clear guidelines for businesses, including both physical and online access to application forms. Municipal officials will assist applicants in the process, ensuring timely approvals and smooth operations for new and existing businesses.
- Safety and compliance assurance. The by-law mandates that all business activities align with public health and safety regulations. Regular inspections and public awareness campaigns will ensure that township businesses uphold the highest standards, protecting both entrepreneurs and the communities they serve.
- Inclusive growth strategy. Recognising the economic significance of townships, the by-law places a strong emphasis on skills development, mentorship, and market access initiatives to support businesses and help them thrive within local and broader markets.
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CoGTA said it remained dedicated to engaging communities and stakeholders in the implementation of the by-law, ensuring that its benefits reach every corner of South Africa's townships.
To read the full gazette go to https://www.cogta.gov.za/index.php/docs/local-government-municipal-systems-act-2000/.
