Covid-19: Relief for informal businesses – but they’ll have to register

As the economy buckles under the weight of the lockdown, Minister Khumbudzo Ntshavheni has announced a few measures to help small business through this trying time.

Ntshavheni said that her department had managed to get banks to agree to reschedule loans for mortgage funding and vehicle finance to support small businesses affected by the shutdown.

On Friday, Ntshavheni announced that 81 000 small, medium and micro businesses had registered on the database and more than 2 000 applications have been received for relief funds.

She urged taxi owners to approach banks and the department to reschedule the repayment of their loans. The department would also offer debt relief to business owners.

The minister of small business development said this while the economic cluster of ministers was updating the nation on economic matters as contained in the revised lockdown regulations on Friday.

Wide-reaching bans on movement were rolled out throughout the country last month as President Cyril Ramaphosa announced the 21-day lockdown.

Ntshavheni reminded small business owners that in order for them to be eligible, they should have been operational by February 29 this year.

She said that informal businesses – spaza shops, fruit and vegetables vendors and fishermen – would qualify for the relief fund, however they have to register with the department.

“No one cooking outside will qualify for the fund and they should adhere to the lockdown rules – only people selling fruits and vegetable, fishermen as mentioned by the minister of food industry and fishing [Barbara Creecy] will qualify for the fund,” she said.

She reiterated that no one should be found trading cooked food on the streets or in spaza shops.

South Africa relied on China for its face masks, however due to the Covid-19 pandemic, China has been unable to export masks. This has put a strain on medical professionals who work without protective gear.

On Friday Ntshavheni said that her department and the department of health had decided to support small businesses to produce protective gear in the form of latex gloves and masks.

Ntshavheni said that the same courtesy given to food retailers would be extended to informal businesses, in that no one would be subjected to Covid-19 testing before they traded.

“It is condescending; it is disrespectful to ask if there would be testing of informal businesses. Who questioned Pick n Pay workers about testing when the lockdown started,” said Ntshavheni.

Informal traders were allowed to sell goods during the lockdown, provided they had permits.

Ntshavheni said South African and foreign spaza shop owners would get help as long as they are properly registered.

“Spaza shop owners can apply online for the Spaza Shops Support scheme. Forms are available on the department’s website. Informal traders can apply for a permit to trade at their local municipalities.”

She urged spaza shop owners to abide by the law and avoid sleeping in their shops.

She also urged them to sanitise their shops to help curb the spread of the virus.

Speaking to City Press, Nafcoc acting President Gilbert Mosena said that they were in talks with the Motsepe foundation to assist informal traders

“We have called on the Motsepe Foundation to consult or use the Nafcoc network for the allocation, distribution and implementation criteria,” said Mosena.

Small businesses would need a cash injection to survive, he said.

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