Johannesburg mayor Dada Morero told spaza shop owners and informal traders at a summit in Soweto to register their businesses and pay municipal rates. He said the city can no longer support an informal sector worth R180 billion a year that uses services but doesn’t contribute financially.
“By paying for your rates and services, you help us reduce constraints on the municipality,” Morero said. He noted that many suburban residents pay hundreds of rand a month in rates and connection fees, essentially subsidising services in townships like Soweto. If all users paid their share, he said, the city could reinvest in local economies rather than relying on transfers from richer areas.
New by-law and digital tools
Morero announced that Johannesburg will soon adopt a Township Economy By-law to help support spaza shops and traders. The by-law, building on the city’s 2022 informal trading policy, is designed to give township entrepreneurs “the standing, the space, and the support to grow”.
He said the city has already processed 4,043 spaza shop registration applications across all regions and begun issuing over 500 temporary permits to compliant traders. To further help traders, Morero said new digital platforms will let them order stock online, cutting out travel costs and long queues. “You will be able to order your produce from the comfort of your home,” he said.
Compliance needed for support
Acting Economic Development Facilitator Benji Seitlhamo backed Morero’s message. Seitlhamo said paying rates and taxes is “non-negotiable” for any business in Johannesburg and is the only way the city can provide reliable services. He warned that traders who do not register or meet compliance requirements will be locked out of government support and funding.
“Compliance helps to get funding. Without compliance, there won’t be any development or support from the government,” he said. In other words, spaza shop owners must formalise their businesses not only to help the city balance its budget, but also to access grants, loans or other assistance meant for compliant businesses.