Durban - Business licence holders have been warned against lending their licences to other operators, especially foreigners who may be in the country illegally.
But this was not a call to incite xenophobia, KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs Michael Mabuyakhulu said during a workshop on trading licences with municipalities, traders and other parties on Tuesday.
Mabuyakhulu was unapologetic about the department’s intention to promote South African entrepreneurs before foreigners.
“We want to see an end to foreigners taking over South Africans’ trading licences. If they are in our country legally, then it should be easy for them to obtain their own licences and trade legally,” he said.
According the Business Act, a business licence is a prerequisite for any entrepreneurial permit, including a liquor licence.
Mabuyakhulu said tougher trading laws followed by enforcement would help ensure that local markets were protected from countries that dumped illicit goods in South Africa.
“Municipalities must understand that it is their constitutional mandate to see that the law is enforced,” he said.
The department is planning a closer working relationship with the Department of Home Affairs to assist in validating nationality status of those applying for business licences.
Home Affairs advocate Moses Malakate said many foreigners were being assisted by South Africans in abusing the law.
“Before issuing a licence the officials must first check the applicants’ permits to be in the country” he said.
The “rent-a-child” syndrome had also resulted in many foreigners “leasing paternities” of South African-born children so that they could stay in the country on a relative’s permit.
The provincial government is working on the KZN Business Bill, which is due for completion during the 2016/17 financial year. Its regulations are said to be more favourable to South African entrepreneurs, and would allow for their partial exemption from paying rates, water and electricity during the first three years.
“We will always promote our own entrepreneurs first and we will not allow counterfeit goods to be brought into our country and expose our people to inferior quality goods,” he said.
The Mercury