Possible change in legislation for foreign business owners
From The Sunday Times
“Foreigners who own spaza shops and other businesses may soon be subject to by-laws that could be stricter than their South African counterparts, according to a report on Saturday
In the African National Congress’s peace and stability policy discussion document, the ruling party proposes that non-South Africans should not run spaza shops without adhering to certain legislated prescripts which may or may not apply to South Africans, The Saturday Star reported.
The proposal was a response to attacks on foreign shop owners who were mostly from Somalia and Pakistan.
“Non-South Africans should not be allowed to buy or run spaza shops or larger businesses without having to comply with certain legislated prescripts. By-laws need to be strengthened in this regard,” the policy document reads.” (source)
The xenophobic attacks on foreign owned businesses is not a new phenomenon and some interesting research is being done on it (http://livelihoods.org.za/informality/investigating-the-spatial-distribution-and-nature-of-violence-in-the-spaza-market-delft-south/)
Here’s an old story from 2009: “After months of haggling and threats a deal has finally been struck between competing local and Somali shopkeepers operating in several townships.Mncedisi Twalo of the Anti-Eviction Campaign, who along with the UN High Commissioner of Refugees senior liaison officer Lawrence Mgbangson mediated the agreement, said the deal would “stabilise communities” in areas badly affected by xenophobia.
Part of the deal is for the Somalis to increase their prices on basic goods like bread, milk and maize meal to bring it in line with the locals.
Somali-owned shops would have to moved 100 metres away from the locals, new shops opened since July would have to close and only 30 percent of spaza’s be owned by foreign nationals.
The agreement follows threats by Gugulethu(corr) and Kosovo spaza shop owners in June that their Somali competitors had seven days to leave the township or be forced out.”(link)
University of Cape Town