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.
“The new by-law is a bold statement of CoGTA’s commitment to transforming townships into vibrant 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,” the department explained.
The department said 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, which means any individual with a business license may now conduct business within designated areas, subject to local quotas that ensure equitable opportunities for South African citizens and residents.
“This regulation aligns with the constitutional right to freedom of trade, supporting entrepreneurial efforts that contribute to township vitality.”
The by-law also touches on designated business zones where municipalities are empowered to establish business zones, creating spaces specifically tailored to retail, industrial, and mixed-use enterprises.
It also speaks of business support and capacity building and simplified permitting and registration.
“The new standard draft by-law introduces an efficient permit and registration system that provides clear guidelines for businesses, including both physical and online access to application forms.
“Municipal officials will assist applicants in the process, ensuring timely approvals and smooth operations for new and existing businesses.”
According to the department, the new Standard Draft By-Law for Township Economies will also cover safety and compliance assurance and 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 said the by-law was more than just a regulatory tool.
“It reflects our 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,” the Minister added.
CoGTA said it remained 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 accessed at https://www.cogta.gov.za/index.php/docs/local-government-municipal-systems-act-2000/. – SAnews.gov.za
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