Pretoria: The Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa, has introduced a new Standard Draft By-Law for Township Economies. This by-law, issued in accordance with the Local Government: Municipal Systems Act of 2000, aims to create an enabling environment for small businesses in townships, supporting economic inclusion, job creation, and community empowerment.
According to South African Government News Agency, the new by-law is a statement of CoGTA’s commitment to transforming townships into economic hubs that provide sustainable opportunities for residents. This regulation is designed to harmonise township business ecosystems by providing standardised norms and facilitating easier entry and operation for formal and informal businesses, as explained by the department. The regulation also supports businesses with tailored resources, including permit registration processes and designated trading spaces, ensuring streamlined operations within municipal jurisdictions.
The key features of the by-law include enhanced freedom for business activities, allowing any individual with a business license to conduct business within designated areas. This is subject to local quotas that ensure equitable opportunities for South African citizens and residents. The regulation aligns with the constitutional right to freedom of trade, supporting entrepreneurial efforts that contribute to township vitality.
The by-law also addresses the establishment of designated business zones where municipalities can create spaces specifically tailored to retail, industrial, and mixed-use enterprises. It highlights business support, capacity building, and simplified permitting and registration processes. The new system introduces efficient permit and registration mechanisms with clear guidelines for businesses, including both physical and online access to application forms. Municipal officials will assist applicants, ensuring timely approvals and smooth operations for new and existing businesses.
Accor
ding to the department, the Standard Draft By-Law for Township Economies will also cover safety, compliance assurance, and an inclusive growth strategy. The by-law mandates that all business activities align with public health and safety regulations. Regular inspections and public awareness campaigns will ensure that township businesses uphold the highest standards, protecting both entrepreneurs and the communities they serve.
Hlabisa emphasized that the by-law is more than just a regulatory tool, reflecting a vision for township economies as key contributors to South Africa’s growth. Through inclusive, streamlined, and supportive governance, this initiative lays a foundation for sustainable economic activity in historically underserved areas, empowering individuals to participate meaningfully in the economy. CoGTA is dedicated to engaging communities and stakeholders in the implementation of this by-law, ensuring that its benefits reach every corner of South Africa’s townships.
The full gazette can be acc
essed at https://www.cogta.gov.za/index.php/docs/local-government-municipal-systems-act-2000/.