Gauteng premier Panyaza Lesufi is not taking the claims against foreign-owned spaza stores lying down after shocking disclosures about them. Lesufi is currently on a quest to prevent foreign-owned spaza establishments from having access to national state opportunities. This is his attempt to revive spaza stores run by locals rather than foreigners.
During his state of the province address last week, Lesufi said government would buy goods from spaza shops.He said that the aim was to use 60% of the R34bn goods and services budget to support township initiatives. Foreigners running the outlets are known to buy their stock in bulk and sell at cheaper prices while also operating for longer hours. Lesufi said spazas owned by local entrepreneurs were struggling because they do not have a collective buying power.
“We’ve now finalised a financing model to allow township businesses to have their own bulk-buying mechanism through the establishment of township-based warehouses and distribution centres, such as the ones we already launched in Katlehong and Mamelodi,” Lesufi said. Mokoena told a local paper that foreigners have erected their distribution centres in townships where they have shops and that the government should also consider doing the same.
He said the distribution centres being touted by the government should be highly regulated.“Before spaza shop owners could be allowed to buy from these distribution centres, there should be a strict verification process that willdetermine if the spaza shop is registered, there is a trading permit and the employees have work permits.
“Failure to implement these minimum requirements would result in the distribution centres being used by even illegal foreigners to run their businesses.“It would be unfair if foreigners are allowed to benefit from a government initiative while we are not allowed to buy from their distribution centres,” said Mokoena. Organisations representing township entrepreneurs also supported Lesufi’s plan.
Mboma Mboma