Unlawful Spaza Shop
By Thabo Mosia
Bloemfontein, Free State – 24 February 2025 – As the deadline for Spaza shop and small business registration in the Free State looms on Friday, 28 February 2025, MEC for Finance, Economic Development and Tourism, Ketso Makume, has issued a stern warning to the public and unauthorized bodies. In a media statement released today, MEC Makume emphasized the importance of adhering to legal processes and urged business owners, traditional leaders, and stakeholders to collaborate with the government to meet the registration deadline. Simultaneously, he cautioned against unlawful inspections and closures of unregistered businesses, calling for reports to be made to official authorities instead.
The Free State Government, through the Department of Economic Development and Tourism (DESTEA), has established 51 registration and business licensing centers across the province’s four districts and Mangaung Metro to assist Spaza shops, food-handling outlets, and other small businesses in complying with the Free State Integrated Business Support and Licensing and Regulations Act No. 2 of 2024. This initiative aims to address the proliferation of unregistered businesses, enhance food safety, and curb illicit trade networks in the region.
The Registration Deadline: A Critical Step for Free State Businesses
With only four days remaining until the 28 February 2025 deadline, MEC Makume stressed the consequences of non-compliance. “It is significant for the small business owners to take into cognizance that if the registration window period is missed, the business would not be allowed to operate and will be closed down,” he said in the media statement. This warning underscores the government’s commitment to enforcing legal frameworks and ensuring public safety, particularly in the food-handling sector.
Since November 2024, DESTEA has received a total of 7,521 applications for business registration across the Free State’s districts. The breakdown, as provided in the statement, is as follows:
• Thabo Mofutsanyana District: 2,016 applications
• Lejweleputswa District: 1,366 applications
• Fezile Dabi District: 2,069 applications
• Mangaung Metro: 1,653 applications
• Xhariep District: 417 applicationsOf these, approximately 641 applications have been approved, with the process ongoing. However, with thousands of applications still pending and the deadline fast approaching, MEC Makume has called on business owners to act swiftly. “The registration process requires business owners to submit amongst others a properly filled application form with personal and business details, a certified copy of SA identity document and proof of residence,” he explained. He also cautioned that “forging registration documents is a criminal offence and can result in serious penalties.”
Strengthening Compliance Through Inspections and Support
To ensure adherence to legal and safety standards, DESTEA, in collaboration with law enforcement agencies and other departments, has conducted 1,275 compliance inspections across the province since November 2024. According to the statement, “During these compliance inspections, 198 tuck shops and food handling outlets [were] found to be compliant, 170 were non-compliant. About 58 tuck shops and food handling outlets were closed due to non-compliance.”
MEC Makume highlighted the importance of these efforts, stating, “The intergovernmental and coordinated approach with relevant authorities reflects our commitment as Government that we are dedicated in addressing risks associated with unregistered businesses while addressing the underlying vulnerabilities within the food safety ecosystem and illicit trade networks.”
Beyond enforcement, the department is also providing extensive support to small businesses. This includes both financial and non-financial assistance, such as training programs on food handling, compliance with the Consumer Protection Act, the Foodstuffs, Cosmetics, and Disinfectants Act, and business management skills. These initiatives aim to empower Spaza shop owners and other small business operators to thrive within a regulated environment.
Unlawful Inspections: A Growing Concern
A significant concern raised in the media statement is the rise of unauthorized individuals or groups conducting their own inspections and closing unregistered businesses. MEC Makume has urged the public to refrain from such actions, saying, “MEC urges members of the public or any unauthorized bodies to STOP conducting their own unlawful inspections and closing of unregistered businesses but to report such businesses to their respective municipalities OR the Departmental Consumer Protection Unit at customercare@destea.gov.za; WhatsApp-0829475394 and the nearest Police Station.”
This call to action follows reports of vigilante-like behavior in some Free State communities, where unregistered Spaza shops—often run by foreign nationals or local entrepreneurs—have faced harassment or closures by unauthorized individuals. Such actions not only undermine the government’s regulatory framework but also pose risks to public safety and economic stability. According to recent reports on South African news platforms like News24 and SABC News, similar tensions have arisen in other provinces, such as Gauteng and KwaZulu-Natal, where unregistered businesses have been targeted amid concerns over food safety and illegal immigration.
MEC Makume’s directive aligns with broader national efforts to regulate informal businesses while fostering an inclusive economic environment. The Free State Integrated Business Support and Licensing and Regulations Act No. 2 of 2024, introduced to address these challenges permanently, is a key component of this strategy.
Additional Context: National Trends and Challenges
The Free State’s registration drive mirrors similar initiatives across South Africa, where governments at both provincial and national levels are grappling with the challenges posed by unregistered Spaza shops and small businesses. According to a recent article on BusinessTech, the national government, through the Department of Small Business Development, has been working to formalize the informal sector, which employs millions of South Africans but often operates outside legal frameworks.
In 2024, food safety scandals—such as the contamination of snacks sold by unregistered Spaza shops in Gauteng—prompted widespread public outcry and intensified regulatory efforts. These incidents, covered extensively by The Citizen and TimesLIVE, highlighted the risks of unregistered food-handling businesses, including the spread of foodborne illnesses and the sale of counterfeit or expired products. In response, provinces like the Free State have prioritized compliance inspections and business registration to protect consumers and support legitimate entrepreneurs.
However, challenges remain. Many Spaza shop owners, particularly those in rural areas or from marginalized communities, face barriers to registration, including lack of awareness, financial constraints, and bureaucratic hurdles. DESTEA’s establishment of 51 registration centers across the Free State is a step toward addressing these challenges, but experts argue that more needs to be done to provide targeted support, especially for small-scale operators.
MEC Makume’s Vision for a Regulated Business Sector
MEC Ketso Makume remains optimistic about the impact of these initiatives. “MEC Makume commits on employing more inspections to enforce the Free State Integrated Business Support and Licensing and Regulations Act no2 of 2024. This Act [is] intended to respond permanently to issues experienced towards businesses operating without being properly registered,” the statement notes.
His vision extends beyond enforcement to include economic empowerment and community development. By ensuring that Spaza shops and small businesses operate within legal boundaries, the Free State Government aims to create a safer, more transparent, and competitive business environment. This, in turn, could boost consumer confidence, attract investment, and support job creation in a province where unemployment rates remain high.
How to Register: A Step-by-Step Guide for Business Owners
For Spaza shop owners and other small business operators in the Free State, the registration process is straightforward but time-sensitive. Here’s what you need to do before the 28 February 2025 deadline:
1. Visit a Registration Center: Head to one of the 51 DESTEA registration/business licensing centers located across Thabo Mofutsanyana, Lejweleputswa, Fezile Dabi, Xhariep districts, and Mangaung Metro.
2. Submit Required Documents: Provide a properly filled application form, a certified copy of your South African identity document, and proof of residence.
3. Comply with Follow-Up Requirements: After registration, obtain a permit or license as per municipal by-laws and other compliance requirements.
4. Seek Assistance: If you need help, contact the Departmental Consumer Protection Unit at customercare@destea.gov.za, WhatsApp 0829475394, or visit your nearest police station or municipality.Business owners are also encouraged to attend DESTEA’s training programs to learn about food safety, consumer protection, and business management.
Public Reaction and Expert Opinions
The registration drive has elicited mixed reactions from Free State residents and business owners. Some, like Thabo Mokoena, a Spaza shop owner in Mangaung, welcome the initiative but express concern about the short timeline. “I’ve applied, but the process is taking time, and I’m worried I won’t meet the deadline,” he told The Free State Star in an interview last week.
Others, however, view the crackdown on unregistered businesses as discriminatory, particularly against foreign nationals who operate many Spaza shops in the province. A recent article in Mail & Guardian highlighted tensions in South Africa’s informal sector, where xenophobic attitudes have fueled unlawful inspections and closures in some communities. MEC Makume’s call to report unregistered businesses to authorities rather than taking matters into one’s own hands is seen as a critical step toward de-escalating these tensions.
Economic experts, such as Professor Niazi Mthembu from the University of the Free State, argue that while the registration drive is necessary, it must be accompanied by sustained support for small businesses. “Many of these operators lack the resources to comply with complex regulations,” Prof. Mthembu told EWN in a recent podcast. “The government needs to provide more funding, training, and simplified processes to ensure inclusivity.”
Looking Ahead: The Future of Spaza Shops in the Free State
As the 28 February 2025 deadline approaches, the Free State Government is poised to enforce strict measures against non-compliant businesses. However, MEC Makume’s emphasis on collaboration, support, and legal compliance suggests a balanced approach that prioritizes both regulation and empowerment.
For consumers, the crackdown on unregistered Spaza shops promises improved food safety and reduced risks of illicit trade. For business owners, it offers an opportunity to formalize their operations, access government support, and contribute to a thriving economy. Yet, the success of this initiative will depend on the government’s ability to address the structural challenges faced by small businesses, from financial constraints to bureaucratic inefficiencies.
Contact and Further Information
For more details, business owners and the public can reach out to DESTEA through the following channels:
• Email: customercare@destea.gov.za
• WhatsApp: 0829475394
• Website: www.destea.gov.za
• Media Inquiries: Mojalefa Mphapang, Departmental Spokesperson, on 0722741734
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