ACCORDING to the eThekwini Municipality, an estimated R55 billion is generated by the City’s informal economy which employs about 260 000 people. The informal economy includes street traders, spaza shops, informal manufacturing, informal panel shops and other home businesses.

According to municipal spokesperson Gugu Sisilana, the funds injected into eThekwini’s Gross Domestic Product have been affected by non-compliance with the City’s by-laws and non-registration of informal businesses. In September, Council approved the implementation of a strategic intervention to assist and empower local tuckshop owners and ensure sustainable economic growth within the municipality.

“This approval comes in response to the collapse of micro-enterprises known as tuckshops, which serve basic retail needs in townships and lower-income suburbs,” said Sisilana.

The City has a database of 4 700 spaza shops currently issued with permits or licences to operate in various townships. Sisilana said the interventions proposed will contribute to economic empowerment, job creation and community development.

“According to the report tabled before EXCO, many of these tuckshops have been taken over by foreign nationals, leading to unfair competition with local tuckshops. As a result, the sector is now dominated by foreign ownership, which has resulted in economic displacement, informal economy dynamics, compliance and legal issues, competition and market saturation.

Also Read: By-laws coming in to regulate spaza shops in KwaZulu-Natal

“The proposed strategic interventions aim to address challenges facing these establishments through a comprehensive support framework that includes stakeholder engagement, access to opportunities and capital, local ownership of township or rural markets, bulk buying programmes, leveraging foreign ingenuity, township and rural empowerment, and skills development and capacity building. This will include the review of the Informal Economy By-Laws and Compliance,” added Sisilana.

A window will soon open for tuckshop owners and vendors to register and renew their business licences with eThekwini Municipality. The application process costs R287, and the fee includes your licence.

“The licence is renewed annually between December 1 and January 31, and there are no costs for renewing it. Tuckshop owners who sell items from their homes also need to have a food licence (ITEM 1) for the sale and supply of any foodstuffs or perishable foodstuffs,” said Sisilana.

Anyone who wishes to open an accommodation, entertainment establishment or a food outlet in the city has to register with eThekwini’s Business Licensing Unit. For more information, tuckshop owners can contact the Business Licensing Unit on 031 311 4535 or visit the 7th floor, Embassy Building, 199 Anton Lembede Street, in the Durban CBD.

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