How #Spaza4Locals Campaign Could Transform Township Economies in South Africa

By: Phumelele Nxumalo

South African political party ActionSA has launched its #Spaza4Locals campaign, aimed at empowering township economies by advocating for locally owned spaza shops and fighting illicit trade.

The campaign comes in response to concerns about the economic impact of foreign-owned shops on local businesses and a recent outbreak of suspected food poisoning linked to products sold in some spaza stores. By focusing on local ownership, regulatory enforcement, and business support, ActionSA hopes to create a sustainable and community-centered economic model for South African townships.

The #Spaza4Locals campaign has outlined three primary focus areas:

1. Mandating Local Ownership of Spaza Shops

ActionSA’s campaign proposes requiring 100% South African ownership for spaza shops, with the aim of empowering local entrepreneurs and retaining economic control within township communities. By mandating local ownership, ActionSA believes more jobs can be created for residents, directly benefiting local economies.

The party emphasizes the importance of supporting young business owners, noting that about 75% of township entrepreneurs are aged between 18 and 35. This shift, they argue, could help revitalize township economies and reduce unemployment.

2. Implementing Stronger Regulations to Curb Illegal Trade

To protect township economies, ActionSA is calling for stricter regulations and penalties for illegal trade practices.

Their proposal includes fines, imprisonment, and immediate shop closures for those found guilty of selling counterfeit goods or engaging in illegal business activities. By tackling illicit trade, ActionSA aims to safeguard township communities from exploitation by criminal networks and to ensure safe, high-quality products in local spaza shops. This move is also intended to foster a safer environment for consumers, mitigating issues like counterfeit goods and unsanitary products.

3. Formal Registration and Training for Spaza Shop Owners

The campaign also highlights the need for formal registration and health certification for all spaza shops. ActionSA believes these measures will set higher standards of safety and accountability, ensuring that consumers have access to safe and quality-controlled products. To further support local business owners, ActionSA proposes partnerships with agencies such as the Small Enterprise Development Agency (SEDA) and the Small Enterprise Finance Agency (SEFA). Through these partnerships, spaza shop owners would receive mentorship, financial support, and essential business skills training, helping them succeed in a competitive market.

ActionSA argues that current laws are inadequate and poorly enforced, leaving local entrepreneurs vulnerable to exploitation and the effects of unregulated competition. Their campaign aims to establish a transparent and enforceable framework that benefits South African citizens and creates a fair marketplace for township communities.

Lerato Ngobeni, ActionSA’s Parliamentary Chief Whip, stated that the #Spaza4Locals campaign is about “creating a fair, prosperous South Africa where township businesses put South Africans first.” According to Ngobeni, the initiative is a way to reclaim township economies for local entrepreneurs, ensuring that economic benefits remain within the community and fostering long-term growth. ActionSA envisions a future where township businesses are locally owned and community-driven, providing stability and opportunity in South African townships.

The #Spaza4Locals campaign underscores ActionSA’s commitment to revitalizing township economies by promoting local ownership, improving regulation, and supporting South African entrepreneurs through training and mentorship. By focusing on community-centered growth, the party aims to create a sustainable economic model for South Africa’s townships.