Spaza shop owners operating in rural areas are complaining that they are unable to re-register their businesses because municipalities refuse to do so without approval letters from traditional leaders. Some shop owners have also raised concerns about paying double tax as traditional leaders are charging additional fees.
The Zoutpansberg Community Development Forum (ZCDF) released a statement last week accusing the municipality of failing to adhere to legislation. According to ZCDF chairperson Patrick Sikhutshi, the spaza shop owners are simply trying to comply with President Cyril Ramaphosa's call to formalise their businesses. This follows incidents last year in which children became ill after consuming food bought from spaza shops.
The ZCDF has previously pointed out that it is illegal for traditional authorities to charge fees for certain services. On 20 December last year, the Constitutional Court upheld a previous ruling by the Limpopo High Court stating that traditional authorities are not permitted to impose taxes in any form. This means compulsory payments for services such as issuing business certificates are unlawful.
In its statement, the ZCDF encouraged all spaza shop owners to re-register their businesses before the 28 February deadline. "The ZCDF has advised spaza owners to disregard the recommendation letter from traditional leaders as they demand exorbitant amounts of money for such a letter," the statement reads.
The Makhado Municipality is one of the local authorities refusing to register spaza shops without an approval letter from the traditional leader if the business is located on tribal land.
Municipal spokesperson Mpho Rathando maintained that applicants must submit letters from their respective traditional authorities. "The Limpopo Business Registration Act prohibits trading without a valid licence. We urge applicants and residents to address these matters with their traditional leaders as we cannot compel them to issue the letters," he said.
Sikhutshi, however, disagrees with this stance. "This decision contradicts the provisions of the Limpopo Business Registration Act No. 5 of 2003," he said. "Section 10(7) clearly states that if an application for business registration is refused or subjected to conditions, the Business Registration Centre must provide the applicant with written notice explaining the reasons for the decision. By not accepting the applications upfront, the municipality is violating this law."
He also expressed concern that the municipality's actions suggest an agreement with traditional leaders that negatively affects spaza shop owners, many of whom are among the poorest in the community. The ZCDF views the President's directive as a vital step in reclaiming the rural economy, which it believes has been undermined by illegal foreign nationals with the support of traditional leaders.
Albert Nedzamba, a spaza shop owner from Tshiozwi who has been running his business for 15 years, shared his frustration over the ongoing requirements. Despite the President's directive, he said, the municipality still demands letters from traditional leaders, which cost him nearly R30,000 to obtain.
"I was shocked to learn that the municipality still insists on these letters. The whole process, from the headman to the municipality, has cost me nearly R30,000. I can't afford this kind of expense as I'm already struggling with my business," he said.