SA indigenisation laws

Small Business Development Minister Khumbudzo Ntshavheni has said government is working to develop legislation that regulates the participation of foreign nationals in South Africa.

The minister confirmed this in a radio interview with 702 journalist Clement Manyathela last week.

“In the country (South Africa) currently, we do not have enabling legislation to allow us to regulate the participation of foreign nationals in the country,” Ntshavheni told 702.

Ntshavheni’s comments come in the wake of weeks of xenophobic violence in Gauteng, which caused 12 deaths and hundreds of arrests.

In her interview, Ntshavheni said countries like Nigeria, Zimbabwe, Ethiopia, Ghana, Tanzania, Bangladesh and Pakistan had regulations to specify sectors in which foreign nationals may not participate. These sectors include retail, pharmaceuticals and micro-businesses.

Ntshavheni said the protection of the small business sector must be strengthened.

“The SMME sector is the one that must contribute to alleviation of poverty, the survival of our people and the ability of our people to create jobs for themselves. We want to protect that,” she said.

The minister said that government cannot account for the business conducted by foreign nationals in the country, as their money is not necessarily banks in SA’s banking systems. This results in lost revenue.

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