Pick n Pay chair Gareth Ackerman has criticised the government’s intentions to restrict foreign nationals from running businesses in Gauteng townships, saying it is going about its plans the “wrong way”.
He was speaking at the Consumer Goods Council of SA virtual summit on Thursday, in his position as co-chair of the council.
The Gauteng provincial government, last month, published the Gauteng Township Economic Development Draft Bill that seeks to ban foreigners, who do not have permanent residence, from operating certain businesses in the townships. While the government is yet to stipulate which businesses will be affected, the move is likely to target an estimated 30,000 foreigner-run, small spaza shops in townships.
The Gauteng government has defended the bill, saying it creates opportunities for locals to participate in township economies.
Ackerman said that people in townships and suburbs are shopping much closer to home, a trend that re-emerged in the lockdown and has since continued, which he said creates “enormous opportunities” for small businesses.
But targeting foreign-owned spaza shops would not automatically favour locals. “This is not about banning foreign traders, which I believe is wrong, but more about encouraging small businesses to open and get involved in the supply of goods.”
He encouraged the government to work with small businesses, entrepreneurs and foreigners within a formal, regulated framework.
Feeding the nation
Ackerman, in his speech, praised retail stores and food manufacturers for keeping “the nation fed in the lockdown”.
“The lockdown was a huge food security issue. No one really acknowledged that, as an industry, we stood up to the many challenges and did the country proud.”
Food retail stores remained open during the lockdown when most other businesses closed. The grocers faced reduced imports because of closed borders and struggled with supply chain disruptions and closed factories. Many businesses needed to provide transport to staff. As staff tested positive for Covid-19, retail stores had to be closed, cleaned and reopened.
Despite disruptions and frequent lockdown rule changes, retailers “quickly changed processes, kept stores safe, and ensured the supply chain worked and that the nation was fed”, he said.
Also speaking was Spar CEO Graham O’Connor, who thanked suppliers and farmers for their role “in very difficult time” saying “the retail industry did ourselves proud”.
He said police kept telling stores they had too many people and criticised the government for not allowing shops and takeaway stores to sell hot food. “Stop hassling us non-stop,” he said he had told government at the time, “all we are trying to do is serve the nation.”
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