Govt finalising policy to protect SA-owned spaza shops: Minister

Government is finalising a policy to protect South African-owned spaza shops and general dealers operating in the townships from unfair competition.

In an exclusive interview with the SABC, Small Business Development Minister Stella Ndabeni-Abrahams explains what they are doing to assist these businesses.

She says her department has allocated R45 million to cushion local spaza shops and general dealers against competition from foreign-owned shops and big businesses.

Ndabeni-Abrahams says there needs to be greater township and rural economic development. She has acknowledged that local spaza shops are suffocating from foreign-owned spaza shops and retail giants.

“The reality is that any responsible government should be saying these different sectors or segments of sectors should be reserved for South Africans and that’s what we are busy with now, we are engaging municipalities, we have issued a policy we’ve gazetted it, people have made comments and I now stand to receive the report on Friday and take it to Cabinet,” says Ndabeni-Abrahams.

The Minister says the R45 million set aside for spaza shops will be used to refurbish old shops and to buy stock, point-of-sale machines and refrigerators.

“We have engaged with the big manufacturers to say we are trying to negotiate what you call bulk buying so that we can get discounts for our people so that when they sell, they can earn a profitable margin. All of that once more is meant to ensure that our people provide quality food which is why amongst the interventions, we have set up a task force on counterfeit products.”

A task team has also been set up to stop the sale of counterfeit goods and expired food. Fronting by South Africans will also be dealt with.

Ndabeni-Abrahams explains, “South Africans do come and apply for permits and they don’t run spaza shops, they rent these permits to foreigners who are here illegally at times because as I said there is nothing wrong with a foreigner who is operating legally but it is the illegality that we are fighting against. Now South Africans become fronters of those, they even come to our department and apply for the support and then they go and give it away and this is what we are calling South Africans to really love their country and protect the investment.”