Everything you need to know when starting a food business in South Africa

So, you have a passion for food and a great business idea, but where do you start? One of the most crucial steps in launching a food business in South Africa is ensuring legal compliance. The regulations surrounding food businesses are designed to protect public health and ensure the quality and safety of the products being sold. Here’s a comprehensive guide to help you navigate the process of starting a legally-compliant food business in South Africa.

Step 1. Determine the Legal and Customer Requirements

The first step in starting any food business in South Africa is determining which legislation applies to your premises and products. Whether you’re operating a restaurant, food truck, home-based business, or large manufacturing concern, compliance with legislation is essential. 

Before investing any money and time in business processes such as facility design, product formulation, or packaging design, determine which acts, regulations, and municipal bylaws you must adhere to. Doing so correctly from the start will save you a lot of money and effort.

Examples of food regulations that are, or may be, applicable include:

  • Regulation 638 of 2018, which states the minimum general hygiene requirements for food premises and the transport of food. This regulation applies to all businesses that handle food in South Africa, regardless of size.
  • Regulation 146 of 2010, governing all aspects pertaining to the labelling and advertising of foodstuffs. Note that this regulation is currently under review with a new version expected in the second half of 2024 or first half of 2025.
  • Regulation 1425 of 2016, which states the regulations relating to miscellaneous additives in foodstuffs.
  • Regulation 692 of 1997, governing the microbiological standards for foodstuffs
  • Regulation 908 of 2003, stating the requirements for the implementation of a HACCP food safety system. Note that a HACCP system is currently compulsory for peanut sorting/grading facilities and peanut butter manufacturers (as per R1060) and all processors of ready-to-eat heat treated meat and poultry products (as per R607).

Tip: Visit the information hub, Food Focus, for a comprehensive library of South African laws and regulations relevant to the food and agricultural sectors.

It’s also important to determine your customers’ requirements. For instance, if you plan to sell your products via a South African retailer, they may expect you to conform to their own food safety and quality standards, which may be more rigorous than South Africa’s minimum legislative requirements. If you plan to export your product, your customer will most probably expect you to be certified to an international food safety standard such as GlobalG.A.P., FSSC 22000, or BRCGS Food Safety.

Step 2. Implement the Legal and Customer Requirements

Now that you know which requirements apply to your business, you can implement them. 

  • Design your facility, equipment, processes, and products to conform to legal and customer requirements. 
  • Arrange relevant training for all staff working at your food premises. 
  • Design and implement a food safety system, which may be based on the minimum requirements set out in Regulation 638, HACCP (if applicable), customer requirements, or an international food safety standard.  

Step 3.  Apply for legal licenses 

Business Licence/Permit

In terms of the Businesses Act 71 of 1991, any person starting a business with the purpose of selling or supplying any foodstuff in the form of meals for consumption on or off the business premises, or any perishable foodstuff, is required to hold a business license. Therefore, anyone wishing to start a new food venture, even if it is a take-away restaurant, needs to apply for a business license under the Businesses Act. 

However, there are certain instances where a restaurant does not need such a license. For example, a restaurant business carried on by an educational institution where the profits derived from the business are devoted to the purpose of that or another institution may not need a business license under the Businesses Act. 

If you’re a hawker or informal trader selling food and meals using a mobile premises or food truck, you’ll need to apply for a trading permit at your local municipality. 

Remember, you may not begin trading in a business that requires a license before the license has been issued, and trading without a valid license is punishable with a fine. Licensing is governed by the Business Act No. 71 of 1991. 

Your local municipality handles business licenses, so contact them for details on licensing procedures and the various health and safety regulations required for different kinds of businesses.

You can apply for your Certificate of Acceptability (COA) at the same time. Note that you may also need to apply for a Rezoning Certificate if you are starting a home-based business.

Zoning or Rezoning Certificate

Depending on the nature of your business and how big your operations will be, you may also need to apply for a business zoning certificate. Zoning of a property considers the nature of your business, how it will affect your neighbourhood, traffic flow, and the suitability of the allocated land for your business type. Zoning or rezoning of property is usually handled by the Department of Human Settlements (Directorate for Spatial Planning and Development) or Housing within your municipality with concurrence from relevant directorates such as Public Health, Infrastructure and Engineering, Roads and Transport, etc. The municipal council grants permission to rezone properties. It must be noted that your neighbours have input as this may affect their property values.

Certificate of Acceptability (COA)

Under Regulation 638, all businesses that handle food in South Africa must have a valid COA. This certificate indicates that the establishment meets the necessary health and hygiene requirements listed in R638 to ensure the safety of the food you handle and serve to the public. The COA is issued by an Environmental Health Practitioner (EHP) after the inspection of your facility.

Tip: See our blog titled “Get your Certificate of Acceptability (COA) in Five Steps” for more information.

Liquor Licence

If you want to sell or manufacture liquor, the law requires you to apply for a liquor license before doing so. Each province has its own Liquor Authority/Liquor Board responsible for granting licenses to businesses within that province.

Fire Compliance Certificate

Any business premises in South Africa must comply with Fire Protection and Compliance prescribed by SANS 10400. Part T (1) and (2): 2020: Fire Protection. A Fire Protection Certificate is issued after a building has been erected and complies with all building regulations. 

The Fire Compliance Certificate is renewable annually for each business in South Africa. Insurance companies may refuse to cover any claim for damages related to fire if you don’t have an approved Fire Compliance Certificate for the business.

Gas Installation Certificate

A Gas Certificate of Compliance (CoC) issued by a registered gas installer is required for any permanent gas installation.

Step 4. Operate your Food Business

Now you are ready to start trading. Remember to stay updated on regulatory changes and maintain your COA. You must not contravene any of the regulations to ensure that your food business remains legally compliant. The municipality inspectorate, working with law enforcement, has the right to close your business down should it pose a risk to public health and safety.

Conclusion

Starting a food business in South Africa can be a rewarding venture, but it requires careful planning and adherence to legal requirements. By following these steps and ensuring compliance with regulations, you can establish a successful and legally compliant food business in South Africa.

How Food Safety Matters can help you

South African Food Hygiene Regulation 638  Section 10(1) outlines the training requirements for food businesses.

According to this regulation, the person in charge of the food business must undergo accredited training in food safety or possess a qualification that includes instruction on food safety (such as a food technologist or chef). Food Safety Matters offers an excellent accredited eLearning course designed specifically for Persons-in-Charge. For more information, please click here.

Furthermore, all other individuals working on the food business premises must receive regular training in basic food safety and hygiene. It is recommended that food handlers undergo refresher training in food safety at least annually. To meet these training needs, Food Safety Matters has developed a fun eLearning course, aligned with R638. We teach food handlers how to become Food Safety Heroes! For more details, please click here.

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