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Wednesday August 10th 2022

Cape informal trading crackdown “extremely detrimental”

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One Response to “Cape informal trading crackdown “extremely detrimental””

  1. Director-General
    Department of Trade and Industry
    Private Bag X84
    Ms Baneka Dalasile

    Re: Commentry on Draft licensing of Business Bill

    Dare to Believe Trading (DTB TRADING) has been assisting small businesses in various local areas in the Eastern Cape and especially in the Western Cape in legalizing their businesses. Thousands of SME’s have been knocking it our doors for assistance. With the partnering and support of various Government Departments e.g. SARS, DTI, SAPS and many others we trained and educated SME’s owners, employees and local community members (landlords) in legalizing their businesses and the process of registering their businesses, employees and individually for tax, etc.

    While we encouraged the clumping down of illegal trading and the selling of counterfeit goods, we are completely against the passing of the New Licensing of Business Bill.

    80% of all the businesses we inspected are struggling to make R300-00 rand a day. They are selling their goods not with the desire to make great profit but to have a piece of bread at the end of a long business day on the street or behind their windows, on their own tables. They life from hand to mouth. These are very poor people who are already being exploited by the huge sums of registration cost and the thousands of rands they have to fork out for their rezoning certificates (Business License). While the municipality already accepted their applications and fees, they are often intimidated by Police officers or Law Enforcement Officers. Some are even fined continuously for not having a Business License in their possession.

    Poor Foreigners who own or run Tuck-shops are being victimized by corrupt Government officials. Many of these foreigners are to apply several times for business licenses before they are given permits. Some are forced to pay thousands of rands to corrupt officials to secure the success of their applications. This is happening on a daily basis and nothing ever comes from reporting this injustice.

    Currently the municipalities in the Western Cape can’t cope with the amount of applications for business licenses, with the result that applicants are waiting for years to receive their certificates or are simply informed by letter that their application failed.

    According to the Bill, municipalities will have to register businesses for a license within 30 days, renew licenses every five years and with the assistance of appointed inspectors, the SAPS, as well traffic officers, ensure that businesses are compliant with a variety of laws. How they will be able to do this, is going to be a miracle as they currently as stated can’t do it in one year.
    Zodwa Ntuli, the deputy director general for the department of trade and industry, said that the license fee will not be exorbitant as it is not seen as a revenue generation mechanism. Yet currently it is expected from poor shop owners to fork up thousands of rands. In most cases these small business owners have no alternative but to trade illegally.
    Ntuli said that the registration process is not meant to hinder business, but is being put in place to allow municipalities to have a database of which business and hawkers are operating in a certain area. Can this justify the changing of our laws?

    The City should assist small businesses in legalizing themselves and not make it more difficult for them to get a business license.

    DTB have invited Mr. Loen Wentzel on numerous occassions as well as other senior Law enforcement officers to come to our combined workshops with SARS, SAPS, DTI, etc. Since 2012 we are still waiting for a reply. I quest the reason why the City is not for legalizing them, is that the issuing of fines (R1500-00 X 1000 Tuchshops) is a great source of income.


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