Small business development minister Khumudzo Ntshavheni will introduce a registry of informal traders and small business enterprises in a bid to regulate the industry.
Ntshavheni, who was addressing the media at the Johannesburg Central police station yesterday, said she wanted to understand the extent of the problem with counterfeit goods in Johannesburg.
This comes after law enforcers were pelted with rocks and forced to retreat in a failed attempt to confiscate counterfeit goods in Smal and Jeppe streets in the CBD last week.
"The ministry has agreed to do a register on informal traders as well as small business enterprises.
"From that register, we want to then give permits for people to operate in certain categories because we cannot have an industry that is not regulated," Ntshavheni said.
The minister said representatives of various brand owners informed her that millions of rands have been lost through the sale of counterfeit goods.
"They told us that between December and July this year they have already lost R350m because of pirated goods."
Ntshavheni blamed SA's porous borders for the huge influx of counterfeit goods and said authorities needed to work with their counterparts from neighbouring countries to prevent this phenomenon.