Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Louise Verwey and Sesotho soundbite by Cllr Mahalia Kose.
The Democratic Alliance (DA) in Tswelopele has raised serious concerns since November 2024 about Mayor Rose Phukuntsi’s decision to implement business licensing in Hoopstad and Bultfontein.
Mayor Phukuntsi initiated the process at the end of 2024, and various businesses obtained licenses. It has been established that the Businesses Act 71 of 1991 (Schedule 1) applies only to specific categories of businesses. Only businesses involved in the sale of meals or perishable food, certain health and entertainment services, and those hawking food products are included.
The Municipality recently began issuing notices to most businesses in Hoopstad, threatening to close them within 14 days if they fail to obtain business licences.
I was present at an MPAC Committee meeting held on 10 February 2026. At this meeting, the Director of Community Services, Mr Mahlanyane, specifically confirmed that the business licensing requirements set out in the Businesses Act 71 of 1991 (Schedule 1) apply only to specific categories of businesses: Those involved in the sale of meals or perishable food, certain health and entertainment services, and those hawking food products. He advised that the business license requirement cannot be enforced on all types of businesses.
Despite this, the Municipality has issued notices indiscriminately to a wide range of businesses that do not fall within these categories. The Municipality’s approach raises serious questions about compliance with the principles of administrative justice and the rule of law. The DA is concerned about how the Municipality appears to be financially exploiting businesses.
It has come to light that the Municipality has been collecting money from businesses that are legally exempt under the Business Act. Some businesses have already paid R1,000 (for SA residents) and R5,000 (for foreigners) for the 2024–2025 period. None of these businesses has received any form of formal licences or certificates, only a small cash register invoice. The same businesses are now again advised to pay the annual license fee for 2026.
To apply for this required business license, the Municipality imposes a long list of requirements that the business owners must comply with. One of the requirements is a building plan for the building where the business is conducted. Many business owners and landlords, such as Hoopstad, had to scrape together thousands of rands to draw up building plans, as the Municipality claimed it had never owned some of the missing plans. In some instances, owners had to pay between R35 000 and R55 000 to have their plans acknowledged by the Municipality.
The Municipality is misrepresenting the applicable legislation about the Business Licenses. The Businesses Act does not impose a blanket licensing requirement.
The (DA) calls on the Tswelopele Municipality to:
- Immediately withdraw or suspend all closure notices.
- Provide clear legal justification for any licensing requirements.
- Publish a list of business categories legally required to hold licences.
- Disclose all payments received for business licences.
- Provide proper documentation to businesses that have already paid.
- Clarify the appeal and representation process.
- Stop issuing misleading and unlawful threats to local businesses.
- Protect Local Economic Activity.
Small businesses are the backbone of the local economy. At a time when communities are already under economic pressure, the Municipality should support businesses, not intimidate them with legally questionable notices or take money from businesses exempted from the business license requirement.
The DA will pursue this matter through oversight structures, including MPAC, to ensure accountability and to protect business owners from unlawful and unfair treatment.