Mashatile outlined government plans to register spaza shops, attract private investment, and fast-track land reform to empower communities.
Deputy President Paul Mashatile addressed Parliament on spaza shop safety, private investment, land reform, intergovernmental debt, and collaborative efforts to tackle South Africa’s key socio-economic challenges.
The deputy president responded to questions in the National Council of Provinces (NCOP) in Parliament, Cape Town, on Thursday afternoon.
Mashatile was responding to questions about supporting spaza shops and informal traders, attracting private investment, growing intergovernmental debt, promoting credible/democratic governance, fast-tracking land reform, and strengthening foreign missions.
Empowering spaza shops
The Chief Whip of the NCOP, Kenneth Mmoiemang, asked whether the government has empowered spaza shops and informal traders to respond to the recent fatal incidents of food poisoning.
“Honourable Mmoiemang, your question opens wounds of pain. You will agree with me that there is no suffering like losing a child,” the deputy president said.
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The government has ordered municipalities to register all spaza shops and food handling facilities within 21 days in response to the deaths of over 20 children.
Mashatile said this will go a long way to enforcing the legal status of the spaza shops.
The Department of Trade, Industry, and Competition (DTIC) has established a joint fund of R500 million to support township and rural businesses, he said.
DTIC R500m fund
The DTIC is allocating R500 million to support township and rural businesses through business refurbishment and non-financial assistance, including technical skills development, regulatory compliance, and capacity building.
The deputy president said that in the long term, the government will review and strengthen laws such as the Business Act and Business Licensing Bill to control business operations, govern counterfeiting, and increase penalties for offenders.
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“I call upon communities to refrain from illegal registration of the spaza shops,” he said.
“We all have a responsibility to ensure the safety and well-being of our communities, and in particular, our children.”
DA Member of Parliament (MP) Paul John Swart asked about attracting private investment, particularly in critical sectors like energy and infrastructure.
Private sector investment
Mashatile said about 130 chief executives from leading South African companies have vowed to work with the government to boost GDP growth, create employment, and promote investor confidence.
Watch Mashatile answer questions in NCOP here:
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“The collaboration between businesses and the government is essential in overcoming the current crisis and ensuring a sustainable future for South Africa,” he said.
He added that private sector resources were mobilised to address the energy crisis; as a result, South Africa has had an uninterrupted power supply since 26 March.
According to the deputy president, the government is focusing on addressing water and infrastructure-related challenges, including freight and logistics.
Water and infrastructure-related challenges
ANC MP Mapule Dhlamini asked about the mechanisms needed to tackle the growing intergovernmental debt, which she believes is hindering the delivery of reliable services to communities.
In response, Mashatile said intergovernmental debt is a challenge that hampers efforts to deliver services.
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He said accounting officers are required to settle all contractual obligations and pay all monies owed, including intergovernmental claims, within 30 days of the submission of an invoice, or in a specific period agreed with creditors or suppliers.
The National Treasury, under the deputy president’s guidance, is proactively withholding Local Government Equitable Share and conditional grants from municipalities that consistently default on payments to bulk suppliers and third parties, the deputy president added.
“National Treasury will also consider top-slicing budgets of departments that owe municipalities in order to settle debt,” he said.
Settling debt
“We will continue to implement these and other measures to eliminate the challenge of intergovernmental debt and to improve the delivery of services to our communities.”
Meanwhile, EFF MP Mandisa Makesini asked whether any tangible steps have been taken to fast-track land reform and coordinate agricultural support programmes.
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Mashatile stressed that accelerating land reform is crucial to the government’s agenda.
He added that the Cabinet has approved the National Policy on Comprehensive Producer Support and Development.
Land reform policy
The policy categorises farmers and outlines the specific support the government will provide to each group, with a focus on disadvantaged communities, including women, youth, and persons with disabilities who engage in agricultural production.
“We will not rest until we have dealt with this historical injustice,” he said.
