Latest news with #CompaniesandIntellectualPropertyCommission
The South African
29-04-2025
- Business
- The South African
BUSINESS INSIGHTS: New MOI rules under Companies Act amendments
Various amendments to the Companies Act (Act 71 of 2008) came into effect on 27 December 2024. These amendments were contained in the Companies Amendment Act (Act 16 of 2024) and in the Companies Second Amendment Act (Act 17 of 2024). One of these amendments was to section s16(9)(b). This section describes when an amendment to an MOI that is filed at the Companies and Intellectual Property Commission ('the Commission') comes into effect. This little amendment is very welcome because previously, there was much confusion about this. It was an uncomfortable position, because parties in commercial transactions that include new or amended MOIs as part of the agreed suite of transaction documents, want certainty as to when they come into effect. The confusing language from the old sub-section said that the amendment came into effect on the date and time when the Notice of Amendment was 'filed' at the Commission, but the definition of 'file' referred to 'delivery' and it was not clear when delivery to the Commission occurred. [Just note that this amendment does not apply to when an MOI amendment changes the name of a company, as this is dealt with under a different sub-section.] The new position is that the amendment comes into effect: (i) '10 business days after receipt of the Notice of Amendment by the Commission, unless endorsed or rejected with reasons by the Commission before the expiry of the 10 business days period; or (ii) Such later date, if any, as set out in the Notice of Amendment.' We recommend checking whether your template MOI, or any draft amendment to an MOI or draft new MOI contains a definition of 'Effective Date', or a clause referring to when the amendment or new MOI comes into effect that reflects the old position under the Companies Act. Updating it to reflect the new provision will be desirable so that the company can benefit from the clarity provided by the new provision, and to avoid debates about whether the MOI's provision or the amended Companies Act provision applies. Written by Abigail Reynolds (Corporate & Commercial Law Specialist) This article was originally published by Reynolds Attorneys
Mail & Guardian
22-04-2025
- Business
- Mail & Guardian
Gauteng school nutrition tender faces legal battle over alleged corruption
Service providers have taken the Gauteng education department to court to halt the appointment of 49 new contractors, claiming that some companies have been deregistered, while others are not tax-compliant or are even non-existent. (Photo by Sharon Seretlo/Gallo Images via Getty Images) A group of disgruntled service providers linked to the The challenge follows the publication on 25 February of 49 companies awarded a lucrative contract to supply and deliver dry and perishable groceries to learners in primary, secondary and special needs schools in all 10 districts of the province. The contract, estimated to be worth billions of rands, is set to run from 1 March this year to 28 February 2028. The new list has raised red flags among bidders who were sidelined. Several of the awarded companies are allegedly non-compliant with tax regulations, deregistered or not listed on the Companies and Intellectual Property Commission database, according to court papers . Sources said some of the listed entities have ties to politically connected people and corrupt officials. 'There's a pattern of manipulation here — entities that don't exist or shouldn't qualify have been fast-tracked, and we believe this points to a deliberate attempt to loot public funds,' said one of the unsuccessful bidders, who asked not to be named for fear of reprisal. The bidders argue that the integrity of the procurement process has been compromised and are asking the courts to freeze any appointments until the matter is fully investigated and resolved in transparency. 'We want the court to declare that no new players should be involved until the process is complete and above board,' said the source. In a statement, Gauteng department of education spokesperson Steve Mabona confirmed a delay in the work of new service providers. 'We must acknowledge that, since their appointment, some service providers have delayed their deliveries to a few schools. However, this was rectified by Friday, 11 April 2025, and we can confirm that all schools received their stock,' he said. Asked about the allegations, Mabona said the department could not comment about matters still in court. This is not the first time the tender has been contested. Last year LTC Holdings — one of the service providers on the current list — filed an urgent court interdict in the Pretoria high court to stop the R1 billion contract awarded to 47 other companies in June. That court challenge caused delays in the implementation of the feeding scheme, leaving some learners without meals. The interdict application claimed that the Gauteng basic education department had failed to adhere to procurement procedures. In August, Mabona said the department acknowledged that 'things didn't go as they were supposed to happen' during the tender process, leading to legal challenges from unsuccessful bidders. In response to those allegations, Basic Education Minister Siviwe Gwarube The applicants in the latest legal challenge say they are prepared to present their findings in court and have indicated a willingness to approach the South African Police Service for criminal investigations into the awarding of the tender. 'The Gauteng school feeding tender scandal should serve as a turning point. An independent forensic investigation into procurement processes is essential, and those found guilty of corruption must face prosecution and be permanently barred from public contracts,' said attorney Steve Friedland. A The nutrition programme is an initiative that provides daily meals to more than 1.4 million learners in Gauteng, many of whom rely on this food as their primary source of nutrition. Since 1994, the programme has tried to improve learners' educational outcomes by combating malnutrition, reducing hunger and improving school attendance. For the 2024-25 academic year, the department of basic education This funding is part of the department's overall budget of R32.3 billion for the 2024-25 financial year, which represents a 7.4% increase from the 2023-24 allocation. Child malnutrition is on the rise, according to an The report found that about 58% of children aged 14 and younger receive social grants, primarily through the child support grant. But, the youngest children, especially infants, are most likely to be excluded from the grant as a result of delays in registering them after birth. The report highlighted the urgent need for an increase in the value of the child support grant, currently R530 a month, to align with the cost of a thrifty healthy basket of R945. 'Due to the size of the grant relative to the cost of ensuring child nutrition, and competing demands on the grant from other household needs such as housing and clothing, the grants are not enough to alleviate food insecurity,' it said.
The Citizen
21-04-2025
- Business
- The Citizen
Government offers R500m spaza shop support fund – Here's what you need to know
Here's all you need to know: how to apply, who qualifies and what the funding includes... South African spaza shop owners looking to improve, expand or sustain their businesses can now apply for financial and technical assistance through the government's newly launched Spaza Shop Support Fund (SSSF). The R500 million initiative aims to bolster the township and rural retail sector. The Department of Small Business Development officially opened applications on Monday, calling on eligible spaza shop owners to take advantage of the opportunity to access funding, training and support. What the fund offers The support package aims to level the playing field for small shop owners facing growing competition from large retailers. 'It provides funding, training, business skills development and technical support to help businesses compete effectively against larger retailers,' the department said. Key benefits of the fund include: Offers funding of up to R300 000 per shop through a combination of grants and low-interest loans. Assists shop owners in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products. Encourage the adoption of digital payment systems, inventory management tools, and financial literacy programmes to improve operational efficiency. Facilitate wholesale aggregation, allowing spaza shops to access bulk purchasing advantages and competitive pricing. ALSO READ: Over 30K spaza shop applications were from foreign nationals Who qualifies? To be eligible, applicants must have the following: The owner of the spaza shop must be a South African citizen or naturalised as a South African citizen before 1994. Spaza shops must operate within South Africa in rural and township areas and serve local communities. The spaza shop must be registered with the local municipality in accordance with the relevant by-laws and business licensing requirements. Registration with the Companies and Intellectual Property Commission (CIPC) will be optional based on the enterprise's funding requirement. For enterprises receiving funding above R80 000, registration with CIPC will be required within a period of 6 months. The business must have a valid registration with the South African Revenue Service (Sars) or be allowed a six-month transitional period. The spaza shop must comply with all other relevant legislative and registration requirements necessary for its operation (e.g. food preparation and health and safety standards). The owner must actively manage the spaza shop. Funding will prioritise entrepreneurs aged 18-35; female-owned spaza shops will receive priority consideration, and businesses owned by individuals with disabilities will be given priority. ALSO READ: Spaza shop poisonings: What is the education department doing to protect kids with special needs? What you get Support up to R100 000 includes: It includes a grant of up to R40 000 for the initial purchase of stock via delivery channel partners. Assets and infrastructure (blended grant and loan): a maximum R50 000 for the upgrading of building infrastructure, systems, refrigeration, shelving and security. A maximum of R100 000 for training programmes that will include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance. Support between R100 000 and R300 000: It includes a stock grant of a maximum of R40 000 for the initial purchase of stock via delivery channel partners. A maximum of R250 000 for a funding split, 50% of the funding will be provided as a grant, and 50% will be provided as a free-interest loan. A maximum of R100 000 for training programmes that will include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance. The National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA) will jointly administer the fund. 'To access the funding, applicants need to apply to the NEF and SEDFA through the prescribed application process outlined on the relevant institution's website,' it said. ALSO READ: Illegal spaza shops 'still proliferate' despite warnings Where to apply Applicants are advised to create an account on the SEFDA SMME Portal, complete the registration process, accept the terms and conditions, and submit their applications online. Alternatively, applications can be submitted through the online websites: For further details, contact the Spaza Shop Support Fund Call Centre on 011 305 8080 or via email. Contact details for the NEF Call Centre are 0861 843633, SEDFA Call Centre 012 748 9600 or by email. NOW READ: Government's R500m spaza shop support fund gets thumbs up
Zawya
04-03-2025
- Business
- Zawya
The legalisation of spaza shops in South Africa: an analysis of government efforts
The informal economy remains a significant component of South Africa's socio-economic landscape, particularly within townships where spaza shops serve as vital commercial nodes, providing essential goods and services to low-income communities. In recent years, the South African government has initiated regulatory frameworks aimed at legalising spaza shops, ostensibly to promote economic inclusivity, enhance consumer protection, and improve tax compliance. However, these efforts have been met with substantial criticism, raising concerns about their effectiveness, potential unintended consequences, and the broader implications for township economies. The policy framework and its intentions The legalisation of spaza shops has been framed within the broader objectives of the Township Economic Development Act (TEDA) and the National Informal Business Upliftment Strategy (NIBUS). The TEDA seeks to formalise township businesses through licensing, regulatory compliance, and integration into the mainstream economy, while NIBUS provides developmental support such as funding, infrastructure improvements, and skills development. Furthermore, the government has attempted to streamline business registration through the Companies and Intellectual Property Commission (CIPC) and introduced township-specific incentives aimed at fostering entrepreneurship. The Department of Small Business Development (DSBD) has also led interventions, including the Township and Rural Entrepreneurship Programme (TREP), which aims to provide financial and non-financial support to spaza shop owners. Additionally, municipalities have implemented bylaws governing trading permits and zoning regulations to control business operations. Despite these efforts, the implementation of such policies remains fraught with challenges, particularly concerning enforcement, red tape, and the exclusion of non-South African spaza shop operators, who dominate the market. Barriers to implementation: bureaucratic red tape and regulatory burdens One of the most significant obstacles to the legalisation of spaza shops is the bureaucratic inefficiency and excessive red tape associated with business registration and compliance. The process of obtaining trading permits and business licences remains cumbersome, particularly for informal traders who may lack the requisite documentation, financial resources, or digital literacy to navigate the registration system. Furthermore, township businesses often face unrealistic regulatory burdens, such as stringent health and safety standards, adherence to municipal zoning laws, and compliance with the South African Revenue Service (SARS) tax obligations. While these regulations are intended to enhance consumer protection and economic formalisation, they inadvertently create barriers to entry for micro-entrepreneurs, leading many to operate outside the legal framework. The foreign-owned spaza shop debate: exclusionary policies? A highly contentious aspect of the government's legalisation efforts is the treatment of foreign-owned spaza shops. The 2023 Gauteng Township Economic Development Act, for instance, prioritises South African citizens in township business licensing, effectively marginalising foreign-owned enterprises. This approach has been criticised as protectionist and xenophobic, raising concerns about social cohesion, economic discrimination, and the potential for violence against foreign business owners. The dominance of foreign nationals, particularly Somali, Bangladeshi, Ethiopian, and Pakistani traders, in the spaza shop industry has been a longstanding source of tension. Many township residents argue that these traders operate efficiently due to group purchasing strategies, extended business hours, and lower pricing structures, giving them a competitive edge over locally owned businesses. However, government intervention through restrictive licensing policies risks exacerbating economic fragmentation, black market activity, and illicit trading, rather than fostering genuine inclusion and development. Economic implications: formalisation vs. economic livelihoods The formalisation of spaza shops carries significant economic trade-offs. On one hand, legalisation enhances business legitimacy, facilitates access to funding and financial services, and ensures compliance with labour laws and taxation. On the other hand, excessive formalisation risks pushing many spaza shops out of business, thereby undermining township economies and exacerbating unemployment levels, which remain a critical challenge in South Africa, with an official rate of 32.1% (StatsSA, Q4 2023). A study by Bénit-Gbaffou (2018) suggests that informal businesses thrive precisely because of their low overhead costs and flexibility, which enable them to adapt to economic shocks. Overregulation may erode this advantage, resulting in fewer businesses, reduced market competition, and increased dependency on state support mechanisms. Moreover, the Value of a Statistical Life (VSL) concept, often used in economic planning, suggests that policy interventions should be evaluated based on their potential impact on livelihood sustainability and poverty alleviation. If legalisation efforts disproportionately burden low-income traders, the resultant economic harm may outweigh the intended regulatory benefits. Towards a more inclusive and sustainable policy approach Given the complexities surrounding spaza shop legalisation, a more nuanced policy approach is necessary. The government should consider the following recommendations: 1. Streamlined Registration Processes – Simplifying business registration through digital platforms, mobile outreach initiatives, and reducing bureaucratic inefficiencies. 2. Flexible Compliance Models – Implementing tiered regulatory frameworks that allow for graduated compliance, enabling micro-enterprises to transition towards formalisation without immediate excessive financial burdens. 3. Inclusive Market Strategies – Recognising the contributions of foreign-owned businesses and fostering collaborative township economic models, rather than adopting exclusionary licensing policies. 4. Public-Private Partnerships – Encouraging partnerships between spaza shop owners, wholesalers, and municipal authorities to enhance supply chain efficiencies and bulk purchasing power for local traders. 5. Community-Led Economic Development – Supporting local cooperatives and community-driven spaza shop initiatives that reinvest profits into township development. Conclusion The South African government's efforts to legalise spaza shops reflect a broader ambition to formalise the informal economy, but the approach remains fraught with challenges. Excessive regulation, exclusionary policies, and bureaucratic inefficiencies threaten to undermine the very businesses the government seeks to support. A more inclusive and pragmatic approach—one that balances formalisation with economic realities—is essential to ensuring that township economies continue to thrive. Without such reforms, legalisation efforts risk entrenching economic inequalities rather than alleviating them. 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