Fatshimétrie, a magazine dedicated to food and food safety news and issues, draws our attention to the recent crisis that has hit the informal food retail sector in South Africa. The tragedy of child deaths from eating unsafe food sold in unregulated spaza shops has shocked the nation, sparking outrage and highlighting the need for radical change in this area.
In a show of firmness and responsiveness, President Cyril Ramaphosa issued a decree requiring the registration of all spaza shops within 21 working days. This measure is crucial to ensure consumer safety and foster an inclusive and vibrant economy. This is a wake-up call that we all need to hear and respond to urgently.
It is time to move from blame-finding and complaints to concrete action and immediate accountability. These small informal food retail businesses have not only provided essential goods, but have also embodied resilience and innovation in disadvantaged and marginalised communities.
To ensure their sustainability, it is imperative to address regulatory gaps, review ownership patterns and combat extortion, while fostering collaboration between local entrepreneurs, foreigners and the private sector.
It is incumbent upon all stakeholders, whether government at all levels, communities or the private sector, particularly the Big Five food retailers, to support the registration and formalisation of spaza shops. This will ensure their continued contribution to the South African economy and society.
The historical significance of spaza shops can be traced back to the generalists of bygone eras, the larger family-run shops run by Afrikaans, Indian, African, Greek and Portuguese entrepreneurs who were the cornerstone of local commerce in townships and rural areas in the 20th century. Known for their personalised service and trust-based credit systems, these shops have become pillars of their communities, offering a wide range of products from groceries to hardware.
The term ‘spaza’ originates from the isiZulu, meaning ‘hidden’, an apt description of the sector’s origins during the apartheid era ban on black ownership of formal businesses. Hidden within homes, they served local needs and became symbols of defiance in the face of economic exclusion.
Post-apartheid, spaza shops evolved into essential components of township economies. Today, they serve millions of mainly disadvantaged South Africans, offering a range of basic food and household products.
Despite their growth, many spaza shops remain informal, operating outside regulatory frameworks and facing significant challenges that threaten their sustainability.
The economic importance of spaza shops in South Africa is undeniable, with the sector contributing significantly to local employment and economic activity. The informal sector, where spaza shops operate, is estimated to account for 30% to 40% of South Africa’s annual food expenditure, with a market value of approximately R178 billion. In recent years, ownership patterns within the spaza shop sector have evolved.
Despite their contributions, spaza shops face a number of barriers that hamper their growth and sustainability:
– Regulatory barriers: Many operate without formal registration, which poses challenges with compliance, monitoring and access to support services.
– Health and safety concerns: The recent spate of foodborne illnesses has highlighted the dangers of unregulated operations. Expired and counterfeit products are often found in these shops, posing serious health risks to consumers.
– Increased competition: The rise of foreign-owned spaza shops, combined with the expansion of high street chains in townships, has created fierce competition, often to the disadvantage of local entrepreneurs.
– Criminal extortion and insecurity: Many shop owners are subject to extortion by criminal syndicates demanding protection.
It is clear that concerted and immediate action is needed to transform this crucial sector of the South African economy. By putting in place appropriate measures to regulate, support and promote spaza shops, we can ensure their continued role in the vitality of local economies and the safety of consumers.