Spaza shops: Some foreign nationals claim they had to pay bribes to register

Foreign nationals operating spaza shops in South Africa have alleged that bribery has become a barrier to officially registering their businesses, as required by recent government directives.

In Jabulani, Soweto, some shop owners shared their frustrations as they worked to meet the 21-day deadline set by President Cyril Ramaphosa for registering all informal businesses. The directive comes in response to a rise in foodborne illnesses linked to products sold in spaza shops, prompting stricter regulations to ensure consumer safety.

Challenges in Registration

For many foreign shop owners, the process of registering their businesses has been fraught with difficulties. While they are required to submit valid documents, such as proof of asylum-seeker status or legal residency, many claim that these documents are not sufficient to navigate the bureaucratic hurdles.

A spaza shop owner in Soweto described the process as daunting, noting that bribes are frequently demanded at various stages of registration.

“We have to pay everyone, including the police. Each office we go to, there is nothing for free. They are working with money, or you need connections,” he explained.

He added that without personal connections or additional payments, progressing through the registration process becomes almost impossible.

The Burden of Bribes

The allegations of bribery extend across multiple government departments and institutions. One shop owner expressed frustration about being forced to repeatedly pay bribes to ensure his business could continue operating legally.

“Everything we do, we pass with money. We are paying money; we are passing with money. It’s too hard for us here,” he said, highlighting the financial and emotional toll of these unofficial payments.

The claims paint a troubling picture of systemic corruption that disproportionately affects vulnerable groups, such as foreign nationals, who often lack the resources or influence to challenge the demands.

Government Crackdown on Unregistered Spaza Shops

The call for spaza shop registration comes in the wake of health concerns over food safety in informal businesses. President Ramaphosa’s directive aims to improve accountability and ensure that all stores meet the necessary safety and hygiene standards to protect consumers.

The initiative also seeks to formalize the informal business sector, allowing the government to better monitor and support these enterprises. However, the implementation has revealed significant gaps in accessibility and fairness, particularly for foreign shop owners.

The Cost of Corruption

The allegations of corruption surrounding the registration process point to deeper systemic issues. For foreign nationals, navigating the process becomes a costly endeavor, with bribes adding financial strain to already tight budgets.

For many, these challenges threaten their livelihoods. One shop owner noted the disheartening reality of paying officials simply to continue doing business. “It’s like we are being punished for trying to make a living. The system is set up to make it difficult for us,” he said.

Calls for Accountability

The situation has raised questions about the transparency and integrity of the registration process. Advocacy groups and community leaders have called on the government to investigate the allegations and ensure that the process is fair and accessible to all business owners, regardless of nationality.

There is also a need for better communication and support for small business owners, particularly foreign nationals, who may lack the knowledge or resources to navigate the system independently.

Conclusion

As the registration deadline looms, the experiences of foreign spaza shop owners in Soweto highlight significant challenges in South Africa’s efforts to formalize the informal economy. Allegations of bribery and corruption not only undermine the credibility of the process but also place undue burdens on vulnerable business owners.

For the initiative to succeed, the government must address these issues and create a transparent, fair system that supports all entrepreneurs in contributing to the economy. Without such reforms, the promise of a safer and more accountable informal sector may remain out of reach for many.

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