A clause in the draft allows municipalities to set quotas on the number of spaza shops owned by foreign nationals
.A new legal framework is being touted to maximise the potential of the township economy.
The by-law has a heavy focus on foreign ownership, allowing the government to set quotas for the number of South African-owned businesses and staff employed by foreigners.The draft clearly defines a foreigner as, “an individual who is neither a South African citizen, nor a permanent resident, but is not an illegal foreigner in terms of the Immigration Act 13 of 2002”.
Townships, as per the draft, are defined as, “residential townships where only the most basic amenities and infrastructure are provided which were initially established during the colonial and apartheid eras”.
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