City to investigate claims of South Africans renting out trading stalls to foreign nationals

Traders' permits last issued a decade ago

Nomazima Nkosi Senior reporter
An informal trader during an interview with Sowetan in Kerk street in Johannesburg.
An informal trader during an interview with Sowetan in Kerk street in Johannesburg.
Image: Antonio Muchave

Investigations are under way to determine if South Africans are renting out trading stalls to foreign nationals — both legal and illegal.

This was confirmed by City of Johannesburg spokesperson Nthatisi Modingoane who told Sowetan that these investigations were ongoing.

Modingoane said the city had noted allegations that South Africans were renting stalls to foreigners after having successfully obtained trading licences.

He said there was no evidence to corroborate the claims but added other spheres of government were conducting operations in some of the affected areas.

“Based on the operations conducted, there is a lot of mushrooming of illegal trading areas, for example mobile traders, trading on traffic intersections and on restricted and non-demarcated areas and most of these traders are foreign nationals.

“The operations are currently being conducted by law enforcement agencies JMPD [Johannesburg Metro Police Department], SA Police Service and home affairs.

“There is also a perception that most South African informal traders that were legally allocated stalls are currently subletting the stalls to both legal and illegal foreign nationals, which is being investigated. The issuing of the new traders' permits will assist to curb this practice,” Modingoane said.

Meanwhile, the city admitted it had not issued trading permits to informal traders for nearly a decade.

This means that the city is clueless how many traders — foreign or South African — are operating on the city's streets.

Responding to questions from Sowetan, the municipality said the last traders' permits were issued in 2013.

In recent weeks, Joburg has been the centre of movements such as #OperationDudula and the Dudula Movement which have targeted “illegal” foreign nationals, trying to remove them from trading spots.

Shops and other businesses in Alexandra were forced to shut last week when locals, who claimed they were part of the Dudula Movement, allegedly searched for migrant employees and shop owners who did not have valid paperwork.

Both groups, which have made it clear they are separate entities, have criticised the government's failure to implement its own immigration policies and ensure that South Africans were put first when it comes to job opportunities in the informal and tourism sectors.

Modingoane said there were 8,100 trader stalls in streets and markets of the city.

However, he added the city last conducted an audit nearly a decade ago, meaning trading on the city's streets was a free for all.  Modingoane said permits are only valid for a period of three years.

Asked about the ratio of permits issued to locals and foreigners, Modingoane said it was about 90% for South Africans and 10% for foreign nationals in 2013.

“From 2013 to date there hasn’t been profiling of the traders based on nationality, however the city is currently in the process of doing verification in all trading areas,” he said.

Modingoane said Joburg is only now conducting weekly roll-calls on markets to verify traders.

“After verification of all traders, there will be registration of all traders in the new informal trading online platform and the issuing of new trading permits that will assist in management of all the traders. The auditing process will be conducted on a monthly basis,” he said.

Bara Informal Traders Association secretary Marlyne Mabunda placed the blame solely on the city, saying it failed to implement its own informal trading policy bylaws.

“I’m a secretary at Bara and this thing of South Africans giving their stalls to foreigners is true. What happens is I pay R100 per month to the Joburg Property Company and foreigners pay me R5,000 rent every month or buy my stall for R30,000.

“What the city also does is they inform us beforehand when they do verifications and foreigners call the original owners to come before officials conduct the audits,” Mabunda said.

Mabunda said the last time the city issued new trading permits was in 2012. “These things have expired and we’ve told the city about this.”

Mabunda said Operation Dudula, was a big problem because when it showed up, they came in huge numbers and at times destroyed stock.

“We have issues with Dudula because they don’t care who’s a foreigner and who’s South African, they just tell us to shut down our operations because they want to give it [the stall] to their own people from ward 26. I’m from ward 12 and I’ve been told I can no longer trade here, meanwhile I’ve been trading at Bara since 1996,” Mabunda said.

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