At least 14 people have been slapped with contravention notices for erecting and operating informal businesses from shacks within Libode’s central business district, while a further 16 people were discovered to be running businesses without valid trading licences.
This as Nyandeni local municipality bosses tighten the screws on unregistered businesses and illegal trading in the urban parts of the rural town, including by spaza shop owners.
The raids were also designed to protect Libode from turning into a shanty town, according to authorities.
Some of the illegal businesses raided included shipping containers which were found to have been converted by their owners into food-selling outlets, hair salons, and funeral parlour offices.
They were found to be trading without licences, as per the municipality’s bylaws.
As a result, the transgressors were given seven working days to comply with municipal regulations, and failure to do so could push the municipality to apply for court orders to have their “illegal operations” permanently shut down, municipal spokesperson Ncebakazi Kolwane warned on Thursday.
Her warning came just hours after Nyandeni’s planning and development unit, along with the municipality’s law enforcement unit, carried out a joint operation which saw raids conducted on businesses operating on the urban fringe of Libode.
Considered one of the most rural local authorities in the Eastern Cape, Nyandeni consists of the urban centres of Libode and Ngqeleni, as well as 282 rural villages.
An urban fringe is defined as an 800m radius measured from the urban centre, according to the municipality.
Kolwane said the raids were aimed at ensuring that businesses were operating with valid trading permits.
“Those business owners who were found in violation of the laws and were discovered to be trading without licences were issued with notices on the spot and cautioned that if they do not secure the required documentation within seven days, law enforcement will return to shut down their operations,” she said.
“The initiative highlights the municipality’s commitment to enforcing regulations and ensuring compliance with local laws.
“Nyandeni municipality will continue to do these inspections in both towns in an effort to eradicate unsightly shacks within town and to improve the aesthetic appeal of our towns to attract investments into our towns.”
She said one of the businesses operating from a shack was allegedly selling illegal substances.
In 2023, the small rural Nyandeni municipality hosted its first ever investment summit in a bid to attract outside investors, with mayor Viwe Ndamase declaring the area was open to investment opportunities from both local and international investors as well as government.
He said, in an endeavour to promote sustainable economic development and mobilise public and private investment, the council had decided to grow the economy through trade and investment initiatives that would result in job creation.
Among its many natural endowments, the area boasted a 30km coastline characterised by six beautiful beaches, breathtaking mountain ranges, snaking rivers and green forests suitable for small-scale farming.
It also had one of the best climates suitable for crop production, livestock farming and even for setting up a vibrant cannabis industry, Ndamase boasted at the time.
In March, the mayor also revealed the municipality had partnered with the University of North West and the department of science, technology & innovation to pilot a concept of a smart village.
He said they had identified Mthombe village, about 44km from Libode as a possible pilot site, though the initiative was still being conceptualised.
On Thursday, Kolwane said the illegal businesses contributed to the theft of water and electricity through illegal connections to the power supply grid and Libode’s main water supply system.
They also generated a lot of illegal solid waste and wastewater, while contributing to the municipality losing a lot of revenue.
“The municipality has a council-approved and gazette spatial planning and land use management bylaw in which the construction of shacks within the urban fringe is prohibited.
“We were serving them to remove the shacks. The mushrooming of shacks along the entry to town is an eyesore and completely unacceptable,” Kolwane said.
“Upon inspection, it was discovered that most of those businesses have illegally connected to the electricity mains that services other businesses around the area and also from the municipal street lights. We also discovered illegal water connections.”
Daily Dispatch