LADYSMITH, KwaZulu-Natal — The Pietermaritzburg High Court has officially ordered the Alfred Duma Municipality to reopen foreign-owned businesses in Ladysmith (now known as uMnambithi), handing a major legal victory to traders who were abruptly shut out of their livelihoods. The ruling mandates the immediate return of confiscated premises keys, allowing dozens of entrepreneurs to resume operations following a contentious municipal compliance crackdown.
The dispute originated in June when local authorities launched a compliance campaign targeting informal supermarkets, spaza shops, hair salons, and spas. Approximately 30 establishments were closed after officials deemed them non-compliant. The mayor subsequently confiscated the keys to these properties and issued a strict directive barring owners from entering the premises until all regulatory demands were met.
Business owners pushed back against the closures, alleging they were singled out for unfair scrutiny. David, an Ethiopian national and local shop owner, detailed the abrupt June 19 shutdown. Despite presenting valid asylum seeker documentation and a municipal trading license, he was informed the paperwork was invalid. “They said they don’t want the foreigner here,” David stated, explaining that the two-and-a-half-month lockdown only ended after the High Court intervened and issued paperwork affirming their right to operate.
However, the legal triumph has been overshadowed by localized unrest. David reported that shortly after the court victory, nearly five shops were subjected to looting. The unrest also involved the burning of vehicles and left at least one individual injured, highlighting the volatile environment these traders continue to navigate despite their legal protections.
The closures also sparked a debate over investment thresholds. While South Africa’s general business visa typically requires a foreign investment of 5 million rand, David clarified that this financial threshold does not apply to asylum seekers operating small enterprises like salons or spaza shops. He noted the irony that the municipality originally issued the licenses, only for officials to later question their validity and demand the businesses close. He emphasized that national directives support the rights of documented individuals to trade, making the forced closures feel unjustified.
This legal battle mirrors a recent precedent in the neighboring eThekwini Municipality, where a similar court intervention forced local leadership to permit foreign business owners to trade. Moving forward, the Mayor of the Alfred Duma Municipality is expected to address the public to provide a comprehensive overview of the situation and outline a clear way forward. While many doors have reopened, the mayor reportedly retains the keys to several remaining closed shops, leaving their operational status in limbo pending further municipal clarification.
