Spaza shops the hub of township economy

Government would like to see South African-owned spaza shop owners working together and better coordinated. This was the message of Alex T Qunta, the Western Cape manager of the Small Enterprise Development Agency (Seda), when he and other Seda members rolled out the Spaza Shop Support Programme in the Garden Route last week.

The programme, funded from the Township Entrepreneurship Fund, targets general dealers and traditional grocery stores in townships and villages with applicable licenses that are 100% owned by South Africans.

Richard Shumi, chairperson of the Thembalethu Business Chamber, accompanied them on their visit to Thembalethu in George last Thursday, 23 July. According to a statement, Seda regards spaza shops as an important component of the township economy. They make critical contributions to local food security, self-employment and community cohesion. A recent study estimated that 300 000 jobs are created in South Africa by the Spaza economy and it further contributes R9-billion to the economy per annum.

Qunta told George Herald that Government wants to assist spaza shop owners. Their prices are not always competitive and it would be to their advantage to come together and buy in bulk.

He said spaza shops are already important and their importance in the economy will increase. Owners are not a burden to the state; they look after themselves, they employ people and contribute to the economy. They are also part of the distribution process and without them big companies will struggle to reach all their target markets. Thobile Mncube, a spaza shop owner in Zone 8, said she and her husband started the business. They do face challenges and it had worsened because of Covid-19. George Herald also spoke to customer Thembale

Nfanta, after he bought potatoes at Mncube’s spaza shop.

He said he often buys from her as the prices are competitive. He was thankful for the spaza shops in the area during the strict lockdown, as he did not have to travel far to buy necessities.

Vuyiswa Zinkuku, who also owns a spaza shop in Zone 8, said she has to overcome huge challenges. She started small in 1993 and though her business has grown, it was already difficult before Covid-19 and since lockdown, the situation has only worsened. She also faces tough competition from shops owned by foreigners.

Shumi said because of high running costs, most of the spaza shops are run by foreigners who work together to cover the costs. “Foreigners saw the gap and the big demand. They mobilised themselves. South Africans should learn from them and also take hands.” There is still a lot of work to be done and the new programme is just the beginning. “We are working with Seda and should also be working closely with the local authorities to streamline business retention in Thembalethu,” said Shumi. Businesses in Knysna and Plettenberg Bay were also visited. One of the shops visited is owned by Antoinette Simmers in Hornlee, where she sells fresh produce, meats, dairy products, bakery goods, and canned and frozen foods.

The shop has been operating for a month. Simmers started the business when she lost her job after her employer closed down because of the pandemic. Her aim with Seda’s help is to sell additional items such as airtime and Lotto tickets, and putting up signage outside the premises for better visibility.

Some of the other areas that were visited include Green Valley, New Horizons, Wittedrift and Kwanokuthula. Moreen Booysen, who is running Moreen Cash Store in New Horizons, said township businesses have been neglected by government and other agencies for too long and bemoaned the fact that foreign nationals have taken over township businesses.

He said spaza shops are already important and their importance in the economy will increase.