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Thirty years after the transition from apartheid to democracy, in the midst of a spate of child deaths blamed on the sale of contaminated and/or old food, government has promulgated legislation to regulate township businesses.

The Standard Draft By-Law for Township Economies has been in the works for some time and is therefore not a knee-jerk reaction to the recent poisoning incidents. 

Township residents will nonetheless draw comfort from provisions making it a crime for traders to buy goods from establishments that do not comply with regulatory prescripts, or to sell expired items.

The new legislation, gazetted by Minister for Cooperative Governance and Traditional Affairs Velenkosini Hlabisa yesterday, seeks to balance the rights of citizens to conduct business with the rights of consumers to the security of a regulated and safe business environment.

It also seeks to regulate the proportion of foreign-owned businesses operating in townships.

The objectives of the by-law, to facilitate spatial and economic development, provide a set of norms and standards for both formal and informal businesses, raise awareness of laws and regulations, and support small businesses to grow, are worthy and achievable.

The legislation places an onus on municipalities to build the operational and management capacity of entrepreneurs through training and mentoring, and to facilitate skills development and business development support services for township businesses.

It tasks municipalities with facilitating access to infrastructure and markets for township businesses.

And it places control of township economies in local government hands by outlawing business activities conducted without a business permit issued by the relevant municipality.

The provisions giving municipalities the powers to determine quotas restricting the proportion of foreign-owned businesses must be carefully managed to protect the rights of legal immigrants and prevent xenophobic vigilantism.

To achieve this balance, municipalities are required, in determining their quotas, to consider the proportion of South African citizens and permanent residents employed by the business. 

Regulating where business activities may be conducted, so as not to interfere with the movement of people or traffic, will create more coherent and functional communities.

Unregulated township business economies have been a major contributor to the inequality in living environments inherited from the past. 

The new by-law is a step in the right direction, providing municipalities do their work well.

Issued by Brett Herron, GOOD: Secretary-General