He was speaking at the Presidential Micro, Small and Medium Enterprises (MSME) and Cooperatives Awards at the Gallagher Convention Center in Johannesburg on Friday.

The chairman reiterated the importance of formalizing small businesses.

Last week, Ramaphosa issued a directive requiring all spaza shops and food handling facilities to register with local municipalities within 21 days.

This action follows a surge in foodborne illnesses linked to informal traders, which has claimed 22 lives and resulted in over 800 reported cases across the country.

“We are trying to make sure that they are regulated so that we know who they are, where they are operating and that they are running their businesses properly within the laws of the land,” said Ramaphosa.

The President explained that the registration initiative is designed to help informal traders transition into the formal economy while ensuring that health and safety standards are followed.

“If they do not come forward, we will be forced to take action. It has been gratifying to see that many people are already signing up. We will make sure they follow all the rules and register properly,” Ramaphosa added.

He emphasized that the process would also empower local authorities to enforce public health standards more effectively.

“The recent spate of foodborne illnesses linked to spaza shops and informal traders in townships has thrown into sharp relief questions about regulation, health and safety.

At the same time, the issue has highlighted the critical role small businesses play in communities, providing much-needed services and supporting local economies.

That is why it is so important to bring small businesses into the mainstream of the economy, and that we provide the necessary support for them to do this,” said Ramaphosa.

Increase MSMEs for economic growth

Ramaphosa further emphasized the government’s commitment to small businesses, describing SMEs and cooperatives as critical to economic growth and job creation.

“Whether they are small businesses in townships or cooperatives in rural areas, whether they are well-established or just starting out, these businesses are an integral part of the future of our economy.

“The wide range of industries represented in these awards showcases the dynamism and versatility of this sector.

“As the years go by, our finalists include innovators, designers, technology pioneers, consultancies, farmers, financial services providers and so much more.

This should dispel misconceptions about small businesses that fit a certain mold, are limited to particular locations or industries, or about their ability to operate at scale,” he said.

To achieve the job creation targets, the government plans to double the number of SMEs to 5.8 million.

This will be achieved through the newly established Small Enterprise Development Finance Agency.

This agency, formed through a merger of SEFA, SEDA and the Cooperatives Bank Development Agency, has already disbursed R730 million, with significant investment in township (R101 million) and rural enterprises (R261 million).

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