20,000 illicit funeral parlours are operating accross South Africa

South Africa’s illicit funeral industry is on the rise, with an estimated 20,000 undocumented funeral parlours operating today, raising concerns about public health and safety.

South Africa’s funeral industry, which generates an estimated R10 billion to R12 billion annually, is facing a growing problem: the rapid rise of unauthorised funeral operators.

The issue recently came into sharp focus after the City of Johannesburg shut down an unauthorised funeral undertaking facility in Ennerdale Extension 6 following serious health, safety, and regulatory breaches.

During a joint inspection involving the Johannesburg Metropolitan Police Department and the South African Police Service, officials discovered two bodies stored in a freezer at the premises.

The facility allegedly operated without a valid compliance certificate and was not authorised to conduct funeral services, Jozi FM News reported.

Investigators also found that the premises were receiving bodies from hospitals through third-party undertakers for burial preparation.

According to the caretaker, the facility handled roughly five bodies per week. Further violations included an illegal electricity connection and the absence of a municipal electricity meter.

The city subsequently issued a formal notice and administrative fine, while prohibiting the facility from receiving additional bodies until it complies with all regulations.

The incident has once again highlighted the tension between regulation, public health concerns, and the realities faced by smaller funeral businesses in South Africa.

Speaking to The Money Show, South African Funeral Practitioners Association (SAFPA) president, Dr Nomfundo Mcoyi-Zondo, said the number of unauthorised funeral operators in the country has grown substantially in recent years.

“We have more than 20,000 parlours currently,” Mcoyi-Zondo said, though she argued that the term ‘illegal funeral parlours’ is often misleading.

“I prefer to call them unauthorised funeral operators because some are not illegal,” she explained. “They contribute a lot to the economy, to job creation, and they help real families.”

According to Mcoyi-Zondo, many operators provide safe and professional services but struggle to meet complex regulatory requirements.

This distinction is important in South Africa, where township and rural funeral parlours often play a vital role in communities that larger operators do not adequately serve.

University of Johannesburg School of Economics associate professor Bulelwa Maphela noted that most operators in the sector are small, informal businesses based in townships and rural areas.

“These businesses have earned trust through years of service, often under difficult circumstances,” Maphela explained.

Despite the important services these small operators offer, she argued that many regulations are designed around large urban funeral enterprises rather than smaller, community-based businesses.

The cost of compliance

One of the biggest challenges facing smaller funeral parlours is the cost of compliance. Under the 2013 regulations introduced through the National Health Act, funeral directors are required to meet strict operational standards.

These standards include backup power systems, specialised drainage infrastructure and gender-specific change rooms.

While these measures are intended to protect public health and ensure the dignified handling of human remains, they are often financially out of reach for smaller operators working in under-resourced areas.

Frequent power outages further complicate matters, particularly for businesses that rely on refrigeration facilities to safely store bodies.

Maphela noted that zoning laws and property regulations also make it difficult for many funeral parlours to secure suitable premises.

At the same time, delayed payments from insurers and underwriters often force operators to cover burial costs upfront, placing additional strain on already thin profit margins.

Maphela cautioned that the proposed 2022 amendments to funeral industry regulations could create even more pressure.

These changes would require Certificates of Competence not only for funeral premises but also for vehicles and trailers used to transport human remains.

According to Maphela, this risks excluding many township operators who run showroom-based businesses and outsource cold storage facilities – a common model in lower-income communities.

“If implemented, many would no longer qualify as funeral directors under the law, despite being the ones communities rely on most,” she warned.

Public health risks remain serious

Despite these concerns, authorities stress that regulation remains essential, as funeral undertaking services involve the handling and transportation of human remains.

This carries significant public health risks if not managed properly. The Ennerdale case illustrates how compliance failures can quickly become dangerous.

Officials found bodies stored in unsuitable conditions, while the property itself allegedly operated without proper zoning approval or electrical compliance.

Authorities also warned that funeral operators cannot simply begin operating before obtaining the necessary licences and certifications.

“The responsibility lies with the property operator to ensure proper zoning approval, licensing, and compliance certification prior to conducting such operations,” city officials said during the inspection.

However, Mcoyi-Zondo argued that the solution is not simply stricter enforcement. Instead, she said government and industry bodies need to work together to help smaller operators achieve compliance.

SAFPA regularly hosts conventions and workshops where funeral parlours engage directly with departments such as the South African Revenue Service, the Financial Sector Conduct Authority and the Department of Home Affairs.

“We make sure that we create all the assistance so that they are not called ‘illegal’, but we give them a platform to correct whatever might be missing in their business,” she said.

The sector is also facing broader structural challenges. Urban cemeteries are running out of burial space, particularly in major metros, forcing the industry to explore alternative burial methods.

Mcoyi-Zondo said cremation and other newer burial methods are slowly becoming more accepted, although cultural resistance remains strong in many communities.

“We are trying to introduce our people to newer and greener ways of burial without compromising cultural beliefs,” she explained.

At the same time, the industry itself is evolving rapidly through automation, digital systems, and changing consumer expectations.

Maphela said that if South Africa wants to unlock the developmental potential of township funeral businesses, policymakers need to move away from purely punitive approaches. “This is not a plea for charity. It is a demand for justice and recognition,” she said.

She argued that phased compliance systems, shared-resource models, and more practical regulatory frameworks could help bring more operators into the formal economy while still protecting public health and safety.

As the funeral industry continues to grow, the government will need to balance regulation with economic reality to ensure families are protected without shutting out the very businesses many communities depend on most.