Recognising the need for reform, ActionSA is pushing for the #Spaza4Locals campaign, aiming to empower South African entrepreneurs, tighten regulations, and curb illegal trade practices in township economies.
This is in connection to the suspected food poisoning outbreak linked to snacks purchased from spaza shops throughout the country, which has resulted in multiple fatalities.
Earlier this week, IOL reported that the in an Interview on Newszroom Afrika, Gauteng Premier Panyaza Lesufi, clarified that anyone who is in South Africa legally is allowed in law to open and operate a spaza shop. Lesufi was asked on the criteria of granting spaza shop licences, and he said under the current laws, “whoever that is here” can get a licence, as long as they are in South Africa legally.
With R200 billion in economic activity at stake, ActionSA’s proposed amendments to the Township Economy By-Laws represent a critical step toward retaining financial returns within the country and revitalising township businesses.
Spaza shops are the heartbeat of many South African townships, providing essential goods while supporting local commerce. However, unchecked foreign ownership and syndicate-controlled illegal trade are posing severe threats to their survival and vibrancy.
ActionSA’s #Spaza4Locals campaign is committed to turning this tide by mandating 100% South African ownership of spaza shops and enforcing standards that ensure the shops benefit the township residents directly.
ActionSA Parliamentary Chief Whip Lerato Ngobeni emphasised, “The #Spaza4Locals Reserved Sectors Bill is not merely a policy proposal, it is a mission to create a fair, prosperous South Africa where township businesses put South Africans first.”
The campaign’s primary goal is to mandate that all spaza shops be owned by South Africans.
This focus on local ownership is designed to empower township entrepreneurs, allowing them to retain economic power within their communities and foster local job creation.
Currently, around 75% of township entrepreneurs are aged 18 to 35, and this initiative aligns with ActionSA’s commitment to nurturing youth-led businesses and encouraging sustainable job creation for the younger generation.
The proposed amendments also seek to protect township economies from exploitation by foreign criminal networks and to reduce the sale of counterfeit goods.
Stricter regulations and penalties, including fines, imprisonment, and immediate closures, will apply to those found in violation. This component of #Spaza4Locals is essential in ensuring that illegal activities no longer jeopardise the financial health and safety of township communities.
To further protect township residents, ActionSA’s proposal advocates for spaza shops to undergo formal registration and adhere to health certifications.
These measures aim to elevate safety standards within these local businesses, ensuring consumers, including many children, can rely on quality and safe products.
The #Spaza4Locals campaign also highlights the importance of equipping South African spaza shop owners with essential business skills.
Through partnerships with agencies such as the Small Enterprise Development Agency (SEDA) and the Small Enterprise Finance Agency (SEFA), the campaign aims to offer mentorship and training programs, helping owners to grow and thrive in an increasingly competitive market.
For too long, township economies have been constrained by insufficient and poorly enforced laws that leave local business owners vulnerable to exploitation and illegal trade, said Ngobeni.
ActionSA’s proposed amendments seek to fill these regulatory gaps by providing a transparent, enforceable framework that levels the playing field and fosters a fair market for South Africans.
Ngobeni said the campaign embodies a mission “to create a fair, prosperous South Africa where township businesses put South Africans first”.
Through its emphasis on ownership, skills development, and protection from illicit trade, the #Spaza4Locals campaign strives to reclaim the township economy for local entrepreneurs and pave the way for a sustainable, community-driven future in South African townships.
IOL Politics