Gauteng Finance MEC Lebogang Maile recently said that if he could do anything he wanted, all spaza shop owners would have to apply again for licences and operate under tight scrutiny. Picture: Jacques Naude / Independent Newspapers
South Africa is reintroducing rules that formerly stifled black enterprise during apartheid, according to the Free Market Foundation’s Eustace Davie.
Davie added that the terrible loss of young lives, and the outrage it has inspired, have naturally heightened calls for action.
But, he said the government’s attack on spaza shops, particularly those controlled by foreign nationals, risks exacerbating rather than resolving issues.
“The raft of new regulations being brought to bear is reminiscent of apartheid-era tactics that stifled economic growth and opportunity for millions,” Davie said.
Gauteng Finance MEC Lebogang Maile recently said that if he could do anything he wanted, all spaza shop owners would have to apply again for licences and operate under tight scrutiny.
“Whether you call it a state of emergency or disaster, there has to be drastic action because this situation has gone out of control. It’s a crisis... When we had a press conference we did indicate about the state of lawlessness in a lot of the townships and that a lot, of these shops are not even registered,” Maile said.
He went on to say that the government had a significant amount of work to do in terms of promoting and regulating township economies, as well as ensuring legal compliance.
Maile and other government officials have visited the countless sad families in Gauteng whose children died after eating snacks to convey their condolences and support.
On the other hand Davie said that: “During apartheid, black business owners in townships faced relentless restrictions that made legal trade nearly impossible.
“Business licences were withheld, forcing entrepreneurs into the informal sector, where they were vulnerable to police raids, closures, and confiscation of their goods. These laws were about keeping black South Africans economically dependent.”
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