Spaza shop compliance in Ekurhuleni: Mbongiseni Sangweni weighs in

Ajouté : 2026-05-28

[00:00:00]The City of Ekurhuleni's Spaza Shop Compliance Campaign is not linked to the recent anti-illegal immigration protest in the country. This was said by the mayor of Ekurhuleni, Nkosi Ndiphile Xhakaza, during a multi-disciplinary operation targeting non-compliant Spaza businesses, as well as illegally built buildings in the Vosloorus area. The mayor says the operation forms part of a broader bylaw enforcement program that was launched shortly after he took office back in 2024. Let's get the view now of the Spaza Shop Stockvel founder, Mngseni Sangweni. Good to have you on SABC News, Mngseni. So, in Ekurhuleni then, give us your sense around the level of compliance in the Spaza Shop economy. How many of those businesses are duly registered and owned?

[00:00:47]Okay, thank you so much for having me.

[00:00:48]Yes, I'm Mngseni Sangweni from an organization called Spaza Shop Stockvel. We assist um entrepreneurs to set up Spaza Shops. We also have got tools that assist them to run the businesses because I remember some of the Spaza Shops are run by older people. So, we make sure that we have got your point of sales, your everything that is needed. But now, coming to your question, which is about compliance, the issue of question and compliance I think it's a very big issue. If you can remember very well, about a year or so, there were there was a half a billion dollars set out to say it is funding for Spaza Shops. But I think a lot of our Spaza Shops are still struggling with compliance, which mainly is the health certificate. When you register a Spaza Shop, this is the process. Maybe let me quickly summarize it.

[00:01:41]When you get into your nearest customer cases, you will ask for an application form or you can go to the website and download an application form. Then from there, you fill in the form, then you send your details. It's either you can apply as an individual or you can apply as a company. Uh Then from there you they will also request documentation like your health certificate where inspectors will come into your place and check to see if this place is suitable for you to run the business. Then the zoning certificate, the lease agreement and all of that when you you have submitted now then they will issue a spaza shop license.

[00:02:24]Previously you would just have the health certificate but now you have to submit all the documentation. Once all the documentation is submitted then they will issue a spaza shop license. Maybe you can get the number from the municipality as to how many were issued because from the database that I've got I think I still have got none that have got a spaza shop license. Most of the stuff that you see hanging on the spaza shops it is normally your health certificate which means it's part of the requirements needed for you to register as a spaza shop. So Mbonge Sanele is the issue is the issue the process or is the issue the fact that well let me not say the fact but is the issue an unwillingness or lack of interest among the people who own the spazas to get the necessary documentation?

[00:03:28]Okay we've got a bit of a an issue Mbonge Sanele with your line. Pardon me I don't know what you've done. Maybe you've moved around or it's a signal issue but we're having an issue hearing you. I'm going to give it one last bash and see if I'm able to hear you better now. I was asking you in terms of the lack of the the correct paperwork for the spaza businesses. Is it that people don't know how to get it or are people not interested in becoming fully compliant.

[00:03:55]Okay, um hopefully you can hear me now.

[00:03:57]>> You're back now. Please go ahead.

[00:03:59]Yeah, most of them Yes, most of them have started the the applications. Most of them that I've got on my database, they have done applications, but it's either they've done the first part, the second part, and they have stopped um somewhere along the line because the process is somehow um they are not uh favorable or friendly. Um so, maybe some of uh uh them you'd find that they struggle with the stuff like your lease agreement.

[00:04:25]Some of them don't own this um uh this um uh stands. You'd find that they are renting, and when they try to find lease agreement because that's one of the requirements, then they don't get an a lease agreement, then they stop. But, what's also concerning, it is the fact that if you can um just go to five or six foreign-owned spaza shop, most of them, if not all of them, already have got the health certificate. Um they got their health certificate, they haven't struggled to get the compliance. So, I don't know, maybe the municipality can can answer that one as to what is the hindrance or what stopped the locals from um um getting the correct um or from starting the process from beginning to the end. But, they are applying, just that they don't finish or they don't end up getting the compliance.

[00:05:13]>> What have you been told regarding why foreign-owned spazas seem, and I'm underlining the word seem, to be going through the process with more ease than the locally owned businesses?

[00:05:27]Uh I haven't I haven't asked that because I think also it's it will not uh some other things you you cannot even share on national TV, but if you can get someone from um um as I've mentioned from the municipality, maybe they can have the answers. But, from the side of of the locals, um Um, of the reasons is that um, uh the the the zoning, the the because the compliance is a is a lot. Let me just mention one of them, the zoning.

[00:05:57]Um, you you know the zoning what it does, it's it's it tells you if you can if this place is for residential or is for business. So, but as much as there is such bylaws, you still find drive along Sodonga Road in Katlehong.

[00:06:15]You will still find a lot of Spaza shop.

[00:06:17]They are almost closer to the road, which means now they are building on top of pipes, which means now they are they are bigger.

[00:06:26]They almost take the whole stand, which also violates the bylaws. It is something that you see when you drive along the main road. Again, which which also I normally say there's nothing wrong with competition, but there's always what you call unfair competition.

[00:06:43]If if someone breaks the rule to compete with you, then it becomes unfair. Maybe just to make which is not part of what you ask, just another example of an unfair advantage.

[00:06:57]I run a Spaza shop. I'm I'm expected to register those people with UIF. I have to contribute to UIF. I have I have registered a company. Registered the Spaza shop as a company. I have to file CIPC annual returns. I have to file stats annual returns. I have to have a bank account. I have charges on the bank account. I have which means now for what I'm spending for the Spaza shop, it is now the cost two three times more than my neighbor who doesn't have a bank account, who doesn't maybe who have got employees that are coming maybe from another country and are not documented.

[00:07:37]And now they pay them because remember now I have to if the employees register I have to have minimum wage. Now my neighbor doesn't even have that.

[00:07:48]Another unfair advantage I was just making some examples you'd find that my neighbor this side people are sleeping inside their shop. I have got someone that I have to rent their house.

[00:07:58]I have to have a store room. I have to have all of that which means now if both of us stock a packet of sugar for 10 rands I have to sell that for for 15 rands in order for me to cover all of the cost but my neighbor this side have to sell it for 12 rands because he doesn't do all of this compliance that is needed by the law enforcement.

[00:08:21]So good to talk to you. Thank you so much for your time. Bongani Sanele joining us here on SABC News speaking to us about the experience of being a tuck shop owner in the Ekurhuleni Metro Municipality where there is a clampdown on unregistered spaza businesses.