COSY CORNER

and urban residential townships, virtually all spazas we encountered were unregistered and worked exclusively in cash.

About one-third were “survivalist” owner-operators, trading from their homes. These resembled the traditional spaza shop.

The remaining two thirds were also informal, but by choice.

They were larger, operating from dedicated premises. They offered a wider range of stock, gave credit and had business ties with wholesalers. They also employed staff. About 45% of the shop keepers were, in fact, employees.

The rise of these larger spaza outlets and supermarkets has intensified competition and many smaller (mostly SA) businesses have exited the market.

This new class of informal traders has brought about important social benefits. But this has come at a cost.

More than half those interviewed reported working more than 15 hours a day, seven days a week. Some were earning as little as R400 per month.

Some shop assistants claimed to be working towards becoming shareholders in the business. But more than three-quarters reported being employees only.

None had employment contracts and all worked for cash.

Half the Cape Town employees we interviewed in a follow-on investigation (and many interviewed elsewhere) reported employers held back their pay.

In some cases, a portion was paid to the employee and the balance reportedly paid to their family (commonly in their home country).

In Cape Town, over half the Ethiopian respondents claimed to be repaying their bosses for