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By Loyiso Sidimba 
1 hour ago
Johannesburg – Foreign citizens living in Gauteng will soon be prohibited by law from doing business in the provincial municipalities unless they obtain permanent residence status.
The Gauteng provincial government wants to prevent foreigners from operating some businesses in municipalities as part of plans to revitalize the economy in several of the most densely populated areas in the region.
A proposed new law drafted by Gauteng’s economic development department and Prime Minister David Makhura’s policy unit will reserve certain economic activities in municipalities for South African citizens and people with permanent residence status.
The Gauteng Township Economic Development Bill released this week does not identify the specific businesses it is targeting.
However, the proposed law will only help municipal businesses in agriculture, construction, manufacturing, transportation, communications, tourism and services if they are owned by South African citizens or holders of permanent residence status.
Stakeholders submitting proposals on the bill should suggest the sectors and subsectors that should be reserved for South Africans and permanent residents.
Permanent residence is obtained by foreign nationals who have been residing in the country on the basis of their work permits for a minimum of five years, their spouses and dependents of South African citizens / holders of permanent residence permits.
It can also be obtained by foreigners who intend to establish a business in the country and are financially independent, among other criteria.
Under the bill, there will be a percentage of provincial government purchases reserved for companies based in municipalities.
The proposed law will also establish specific procurement rules and programmatic support to allow the government and its main contractors to purchase from a large group or groups of companies based in the municipality.
Government contractors will be forced to spend a certain percentage of their procurement budgets on city-based companies, entrepreneurs and cooperatives.
A year ago, Justice and Correctional Services Minister Ronald Lamola revealed that the government was developing strict legislation to prevent foreigners from operating in certain sectors of the economy, but denied that this was protectionism.
At the time, Lamola said his small business development counterpart Khumbudzo Ntshavheni was “developing legislation in relation to foreigners doing business in our country and in which sectors of the economy they can participate, where and how.”
He assured foreign nationals that the country was not about to “wake up” and have a mass deportation of citizens of Zimbabwe, Mozambique and Lesotho.
However, Lamola said legislation was needed to achieve a clear balance that helps the government grow the economy for the benefit of all, but still allows it to sideline some sectors that need regulation. and clearly stipulated that they are for local citizens.
Gauteng Prime Minister David Makhura, while advocating for the relaxation of the lockdown, warned of the massive loss of jobs in the province due to the Covid-19 pandemic, warning that the economic impact would be more than anticipated at first and would have a ripple effect across the country. economy.
Meanwhile, a march in Pretoria this week against foreign nationals, specifically targeting Nigerians and Zimbabweans, has been condemned by the Center for Human Rights at the University of Pretoria.
The organizers of the march protested illegal immigrants and drug trafficking, but the center’s Professor Frans Viljoen said this type of march underscored the need for the government to cultivate social cohesion between South Africans and foreigners.
“Obviously, it is wrong to target people from certain countries or label them as criminals, drug traffickers or responsible for the social ills in the country,” he said.
“This rhetoric only seeks to reinforce xenophobic and populist narratives, from which South Africa strongly distances itself, both constitutionally and in the 2019 National Action Plan to Combat Racism, Racial Discrimination, Xenophobia and Related Intolerances.”
Gauteng is currently home to the largest number of foreigners in the country.
Political Bureau
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