New By-Law Set to Boost Township Economies

The Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa, has introduced a new Standard Draft By-Law designed to empower township economies across South Africa. Issued under the Local Government: Municipal Systems Act of 2000, the by-law aims to create supportive environments for small businesses in townships, promoting economic inclusion, job creation, and community empowerment.

According to CoGTA, this regulation demonstrates the government’s commitment to transforming townships into vibrant economic centres. “The new by-law is a bold statement of CoGTA’s dedication to creating sustainable opportunities for township residents,” stated the department. It also supports both formal and informal businesses by establishing standardised norms and facilitating easier entry into township markets.

Key features of the by-law include increased business freedom. Entrepreneurs with valid licences can now conduct business within designated township areas, subject to quotas that ensure equitable opportunities for South African citizens and residents. “This regulation upholds the constitutional right to freedom of trade, supporting entrepreneurship that enhances township vitality,” the department explained.

The by-law also allows municipalities to establish specific business zones for retail, industrial, and mixed-use enterprises. Furthermore, the regulation introduces simplified permitting and registration processes. It includes an efficient permit system with physical and online applications, offering clear guidance for business owners. Municipal officials will assist applicants, ensuring timely approvals and smooth operations for both new and established businesses.

In terms of safety and compliance, the by-law mandates that businesses meet public health and safety standards, with regular inspections and public awareness campaigns planned to maintain high operational standards. The regulation also prioritises sustainable growth and development strategies, encouraging township businesses to grow responsibly.

Hlabisa emphasised that the by-law serves as more than a regulatory measure. “It reflects our vision for township economies as key contributors to South Africa’s growth. Through inclusive, streamlined, and supportive governance, this initiative creates a foundation for sustainable economic activity in previously underserved areas, empowering township residents to participate meaningfully in the economy.”

CoGTA reiterated its commitment to engaging with communities and stakeholders to ensure the by-law’s successful implementation, with the aim of reaching every corner of South Africa’s townships.

For further details, the full text of the gazette is available on CoGTA’s official website: CoGTA Gazette.