DA welcomes long-overdue directives on self-employed individuals and informal traders

Please find attached an example of an affidavit for self-employed individuals and informal traders. The directions can be accessed here.

Following pressure from the Democratic Alliance (DA) and the small business sector, the Minister of Small Business Development, Khumbudzo Ntshavheni, finally issued directives for micro and small businesses trading in permitted services during the Covid-19 lockdown.

While we welcome the long-overdue directives, the DA will write to the Minister to ask for clarity on “the sole trader document issued by SARS”. According to the Minister’s directives this is one of the acceptable documents a sole proprietor may provide to law enforcement with their permit to run their business during this lockdown period.

Since the start of the lockdown, we have received numerous complaints from self-employed individuals (sole proprietors) and informal traders who have faced harassment at the hands of law enforcement officials who demand that they produce official permits and have threatened to close them down.

These accounts are truly disturbing. The Minister’s directions are, therefore, a welcome step in the right direction and will enable these business owners to trade without fear of the might of the law. The directives issued by Minister Ntshavheni are as follows:

• All formal and informal small businesses or sole proprietors must have a permit to perform essential or permitted services as per Form 2 of the Regulations.
• Form 2 may be signed by the head of the small business in respect of employees, and in the case of sole proprietors, the owner.
• In the case of the head or sole proprietor, they must-

  (i) be in possession of an Affidavit indicating that they are performing a service permitted in terms of the Regulations.

  (ii) have in their possession a CIPC company registration certificate, or sole trader document issued by SARS, or certified copies of the trade certificate of the owner or college certificate in the related qualification, or other documentary proof of the existence of, and the nature of, the business.

• Produce the documents together with the permit upon request by an enforcement officer.

These directives will give ease of mind to an estimate of 3 million informal traders in South Africa and will allow them to trade in order to protect their livelihoods and deliver essential goods and services during this time.

The DA looks forward to engaging the Minister and Parliament’s portfolio committee on Small Business Development in finding adequate solutions to the ease of doing business during the Covid-19 lockdown.