Question NW642 to the Minister of Small Business Development

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04 May 2021 - NW642

Profile picture: van der Merwe, Ms LL

van der Merwe, Ms LL to ask the Minister of Small Business Development

1) Following her statements in September 2019, that the Government intends to regulate the participation of foreign nationals in some sectors of the economy, (a) what total number of small businesses are owned by foreign nationals and (b) is she confident that they comply with all South African laws and regulations; (2) what (a) progress has been made since her pronouncements in September 2019 that legislation will be piloted to protect locals in sectors such as the small business space and (b) are the envisaged time frames for such plans to be implemented?” NW760E

Reply:

(1)(a) The Department of Home Affairs is responsible for the admissions of persons in the Republic and granting business visas for foreign migrants.

  1. Majority of the municipalities do not maintain database of businesses who are permit holders. Since the President re-assigned the administration of the Businesses Act to the Department of Small Business Development, the Department is working to support municipalities to establish the traceable database. These databases will be compared to the Home Affairs database.

(2)(a) In December 2019, the President has transferred the administration of the Businesses Act, no. 71 of 1991, from the Minister of Trade, Industry and Competition to the Minister for Small Business Development. The Department has started the process of amending this Act to also include provisions of how municipalities should regulate the issuing of business licenses and permits to non-South African citizens.

(b) The Department has included in its 2021/2022 legislative programme, the amendment of the Businesses Act no.71 of 1991. The processing of the amendments by Parliament will depend on the parliamentary programme of the Portfolio and Select Committees.

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RESPONSE RECOMMENDED BY:

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MR LINDOKUHLE MKHUMANE

ACTING DIRECTOR GENERAL: DEPARTMENT OF SMALL BUSINESS DEVELOPMENT

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RESPONSE RECOMMENDED BY:

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MS ROSEMARY CAPA, MP

DEPUTY MINISTER OF SMALL BUSINESS DEVELOPMENT

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RESPONSE APPROVED BY:

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MS KHUMBUDZO NTSHAVHENI, MP

MINISTER OF SMALL BUSINESS DEVELOPMENT

DATE: