Landlords shocked by ‘surprise’ R2,200 fee in South Africa
In Nelson Mandela Bay, South Africa, a recent municipal directive has shocked hundreds of landlords. They learned of an R2,207 permit fee required to rent out their properties as spaza shops.
This development follows the government’s intensified efforts to regulate informal businesses and ensure compliance with health and safety standards.
The announcement was made during a meeting at Babs Madlakane Hall in KwaNobuhle, Kariega, convened by the South African Police Service (SAPS), the community policing forum, and a group of pastors affiliated with Spiritual Crime Prevention (SCP).
According to a report by GroundUp, The gathering included landlords and immigrant spaza shop owners from countries such as Pakistan, Somalia, and Ethiopia.
Mthulisi Msimanga, the director of land and planning for the municipality, addressed the attendees, emphasising the necessity of obtaining municipal approval before operating a business.
He stated, “You’re not allowed to run a business before our approval. The application assessment process takes between 14 and 30 days.
“You are only permitted to operate a home enterprise after the application has been approved by the municipality.”
Msimanga further instructed landlords to visit the land planning offices on the third floor of the Lillian Diedricks Building in Govan Mbeki Avenue, Gqeberha, clarifying that the directive was specifically for landlords, not spaza shop owners.
This move aligns with the government’s broader initiative to regulate spaza shops and other informal food-handling businesses.
President Cyril Ramaphosa recently mandated that all such establishments register with their respective municipalities within 21 days, aiming to enhance compliance with health standards and curb the sale of unsafe food products.
Recent foodborne illness outbreaks linked to unregulated vendors underscored the urgency of this directive, prompting the government to classify foodborne illnesses as a national disaster under the National Disaster Act.
Aretha Plata from the public health directorate outlined additional requirements for shop owners, including a R796 fee for a business licence.
She detailed the necessary steps: obtaining consent from the municipality’s town planning department, securing waste removal services through registered providers or the municipality, implementing pest control measures to prevent food contamination, and undergoing food safety training.
Plata also emphasised the prohibition of decanting, stating, “Anything you sell is supposed to have a label and an expiry date. We don’t allow decanting.”
The directive has elicited concerns among landlords.
Apostle Nceba Jantjies of SCP highlighted the longstanding practice of elderly residents renting out their homes to foreign nationals, noting, “The municipality failed long ago to address this situation.”
Landlord Mnyamezeli Luphondwana expressed apprehension that converting residential properties into business premises might affect their eligibility for social grants.
While the government’s intentions aim to safeguard consumers, the abrupt implementation and associated costs have placed a significant burden on landlords and small business owners, many of whom rely on these enterprises for their livelihoods.
The situation in Nelson Mandela Bay serves as a microcosm of the challenges faced nationwide as authorities strive to balance public health concerns with the economic realities of informal traders.
The coming weeks will be crucial in determining how these regulations are enforced and whether accommodations will be made to address the concerns of those affected.
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