/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Minister of Cooperative Governance and Traditional Affairs (COGTA), Mr. Velenkosini Hlabisa has on 7 November 2024, introduced a new Standard Draft By-Law for Township Economies. This by-law, issued in accordance with the Local Government: Municipal Systems Act of 2000, aims to create an enabling environment for small businesses in townships, supporting economic inclusion, job creation, and community empowerment.

The new by-law is a bold statement of CoGTA's commitment to transforming townships into vibrant economic hubs that provide sustainable opportunities for residents. This regulation is designed to harmonize township business ecosystems by providing standardized 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.

Key Features of the By-Law include:

1.    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.

2.    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.

3.    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.

4.    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.

5.    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.

6.    Inclusive Growth Strategy: Recognizing 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.

“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,” Minister Hlabisa said.

CoGTA remains dedicated to engaging communities and stakeholders in the implementation of this by-law, ensuring that its benefits reach every corner of South Africa’s townships.

Click here to read the full gazette: https://www.cogta.gov.za/index.php/docs/local-government- municipal-systems-act-2000/

Issued by Department of Cooperative Governance