Govt plays hardball with SA retailers
Friday, August 26, 2016
In a statement released this week, PrimeTime said about 30% of the targeted tenants, who are South African retailers, have not been able to secure exemptions to trade in businesses reserved for locals. According to the Trade Act of 2003 businesses such as auctioneers, car wash, cleaning services, curio shop, fresh produce, general clothing, general dealer and hairdresser are exclusively reserved for citizens.
However, many SA retailers have up to now been able to sell these goods after securing exemptions from the Minister of Trade and Industry. Although PrimeTime did not identify the affected South African retailers, an official at the Ministry of Investment, Trade and Industry told BusinessWeek that five household names that are in the clothing retail business have been affected.
While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...