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SA crafting new law blocking foreigners running businesses in townships

A new law is being crafted to ban foreigners from doing business in Gauteng Townships unless they get permanent residence status.

The Gauteng provincial government is planning to enact a law that will revitalise the economy by affording South African citizens the opportunity to run businesses while decongesting the region’s densely populated business centres.

The Gauteng economic development department and premier David Makhura’s policy unit have drafted a law that will change the way businesses have been run in the province.

The proposed laws, drafted under the Gauteng Township Economic Development Bill were released this week and did not specify the nature of businesses reserved for locals.

Businesses falling under agriculture, construction, manufacturing, transport, communications, tourism and services will be assisted under the proposed law if they are owned by South Africans.

The drafted bill allows stakeholders to suggest the sectors and sub-sectors that should be reserved for South Africans.

The government will also compel its procurement department to allocate part of its budget to small and medium businesses, cooperatives and township businesses.

Justice and Correctional Services Minister Ronald Lamola last year revealed that the government was establishing laws to restrict certain sectors of the economy for South African nationals only.

According to IOL, At the time, Lamola said his small business development counterpart, Khumbudzo Ntshavheni, was “developing legislation in relation to foreign nationals doing business in our country and which sectors of the economy they can play in, where and how.”

How to get South Africa’s permanent residence

A permanent resident status can be obtained by foreign nationals who have lived in the country for a minimum of five years because of their work permits. Foreign nationals can also obtain citizenship if they intend to establish a business in South Africa among other criteria.-Savannah

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