Small Business Development Minister Khumbudzo Ntshavheni has said that government is working to develop legislation that regulates the participation of foreign nationals in South Africa.
The minister confirmed this in a radio interview with 702 journalist Clement Manyathela on Thursday.
"In the country (South Africa) currently, we do not have enabling legislation to allow us to regulate the participation of foreign nationals in the country," Ntshavheni told 702. Ntshavheni's comments come in the wake of weeks of xenophobic violence in Gauteng, which caused 12 deaths and hundreds of arrests.
In her interview, Ntshavheni said countries like Nigeria, Zimbabwe, Ethiopia, Ghana, Tanzania, Bangladesh and Pakistan had regulations to specify sectors in which foreign nationals may not participate. These sectors include retail, pharmaceuticals and micro-businesses.
Ntshavheni said the protection of the small business sector must be strengthened.
"The SMME sector is the one that must contribute to alleviation of poverty, the survival of our people and the ability of our people to create jobs for themselves. We want to protect that," she said.
Lost revenue
The minister said that government cannot account for the business conducted by foreign nationals in the country, as their money is not necessarily banks in SA's banking systems. This results in lost revenue.
She added that government is studying what other countries have done, to perhaps develop a law which is a combination of what is being practised in other parts of Africa.
She said this is in line with the African continental free trade agreement which would require the same rules to be applied within countries across the continent.
The free trade agreement is expected to create the world's largest free trade area once operational. The agreement was touted by leaders at the recent World Economic Forum in Cape Town as a significant step in unifying the continent.
Attempts have been made by Fin24 to reach the department's spokesperson.
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