A move by the ActionSA in KwaZulu-Natal to push for the eThekwini metro council to support its bid for spaza shops to be financially backed by Ithala bank has failed to see the light of day.
The eThekwini Municipality is the only metro in KwaZulu-Natal to enter into an agreement with Ithala Bank. And the Herman Mashaba-led party had put the motion proposing an amendment to an item seeking approval for the deal. According to the party, the proposal was aimed at Small, Medium and Micro Enterprise (SMME) development. Mainly the spaza shops.
Aimed at empowering and developing local spaza shop owners
“Our amendment emphasised that this initiative should prioritise empowering and developing local spaza shop owners. Given the pressing issue of spaza shops owned or operated by illegal foreigners. And that has significantly impacted local businesses. Our proposal sought to address the challenges faced by South African spaza shop owners,” explained ActionSA councillor Musa Kubheka.
He further asserted that the spaza shops form a vital part of the township economy. But they are often side-lined.
“They are struggling to compete in a market worth R2-billion, largely dominated by illegal foreigners. Our amendment aimed to ensure that spaza shop owners receive the necessary skills training. Also … business development support, and financial assistance to reclaim their stake in this critical sector,” he said.
Party laments lack of support from other parties
Kubheka said they were taken aback by the move’s lack of support by any political party in the metro.
“This is not the first time we’ve faced such resistance. Previously, ActionSA called for a study on foreign-owned spaza shops within eThekwini. And we proposed measures to empower local business owners. But the ANC and DA again chose not to support it. This setback is frustrating. However, it will not deter us from fighting for the rights of local spaza shop owners,” Kubheka charged.
The ActionSA has been aggressively campaigning for the spaza shops to be handed back to the locals. To take them from foreign nationals. It has crisscrossed various provinces to garner support for its plan.
Bank has had own struggles
On the other hand, Ithala is a bank owned by the KZN provincial government. The ANC in the province has strongly pushed for the bank to be given a state bank license. This also failed. The financial provider has had troubles of its own, mainly centred around governance issues. Also the bank having to operate on a temporary banking license.
