Local spaza and tuckshop owners are calling for urgent help as they continue to struggle against tough conditions, while foreign-owned shops thrive in townships across South Africa.
This was raised by ATM leader Vuyo Zungula in a letter to Minister of Small Business Development Stella Ndabeni-Abrahams.
The letter raised concerns, which he said were brought forward by the South African Spaza & Tuckshop Association in their meeting.
“These are hardworking South Africans who are struggling to keep their businesses afloat under immense pressure. And they are looking to your office for urgent intervention,” said Zungula.
Accessing the new funds
He mentioned that the major challenge is the difficulty in accessing the R500-million Spaza Shop Support Fund. This fund is meant to help local businesses compete fairly. But he insisted that the rules are too strict.
Zungula said many locals are left out because they do not have title deeds. They need these to have trading licenses. And he believes this is an issue linked to historical and ongoing challenges.
He also mentioned that the cost of trading licenses is too high for many local traders. This has made it harder for South African-owned businesses to strive.
Meanwhile, he said, foreign-owned spaza shops are growing quickly. And they seem to have access to major financial support. He said some mentioned having R100, 000 capital injections.
Illegal trade of cheap goods
He raised another concern on the illegal trade of cheap goods, including illicit tobacco and food items. These products are sold at very low prices, putting more pressure on local traders who follow the law.
“These cheap, unregulated products are driving honest spaza owners out of business. They simply cannot compete,” said Zungula.
He called for stronger enforcement to stop the flow of illicit goods and to restore fairness in the sector.
“I urge you to consider more accessible criteria that reflect the realities of our people.
“I implore your department to work with other agencies to crack down on illicit trade, which is choking local businesses,” said Zungula.
