Only South Africans should own spaza shops, says ActionSA’s Mashaba! ActionSA president Herman Mashaba has reignited the debate over the ownership of township spaza shops, calling for these businesses to be owned exclusively by South Africans.
His comments come as public concern grows over food safety and the impact of foreign-owned businesses on local economies.
Mashaba is set to lead a march in Soweto on Wednesday to emphasize this stance, which he argues is critical for reclaiming the township economy.
Spaza Shops and Food Safety Concerns
The controversy surrounding spaza shops, many of which are foreign-owned, has intensified following reports of foodborne illnesses linked to products sold by these outlets. Tragically, at least 23 children have died after consuming items purchased from spaza shops, with many more hospitalizations reported.
South Africans should own spaza shops
In response to this crisis, President Cyril Ramaphosa instructed business owners to register their outlets and ensure compliance with food safety standards. The government hopes these measures will help prevent further incidents of contaminated or substandard food reaching consumers.
Foreign Nationals in Township Economies
Mashaba has consistently argued that foreign nationals have taken over the local township economy, particularly through spaza shops. While it is challenging to quantify the extent of foreign ownership, a 2017 study by the Sustainable Livelihoods Foundation found that 72% of spaza shops in South Africa were owned by foreign nationals.
Mashaba contends that this trend has marginalized South African entrepreneurs and restricted their ability to benefit from local economic opportunities.
“We need to ensure that our township economy works for South Africans first. These businesses should empower local communities, not drive them further into economic despair,” Mashaba has stated on several occasions.
ActionSA’s March in Soweto and Beyond
The Soweto march is not an isolated event. ActionSA has announced plans for similar protests in other cities, including Tshwane. The aim is to push for stricter regulations governing informal trade and to prioritize South African ownership of spaza shops.
In Tshwane, the municipality, governed through an African National Congress (ANC)-ActionSA coalition, recently published a draft by-law for informal traders. If enacted, the by-law could make it more difficult for foreign nationals to operate spaza shops in the capital city. The proposed regulations include stricter business registration requirements, compliance with local trade laws, and enhanced food safety protocols.
A Broader Debate on Xenophobia and Economic Inclusion
Mashaba’s remarks have drawn both support and criticism. Some community members back his calls for South African ownership of spaza shops, arguing that foreign-owned businesses often operate outside of local regulatory frameworks and undermine fair competition.
However, critics have accused Mashaba of stoking xenophobia. They argue that targeting foreign nationals risks inflaming tensions and detracts from addressing systemic economic challenges such as unemployment, inadequate enforcement of trade regulations, and the lack of support for small businesses.
Experts in the informal economy warn that focusing solely on ownership could overlook the deeper issues at play. Dr. Sipho Mkhize, an economist, notes:
“The informal sector thrives on affordability and accessibility. Simply transferring ownership to locals won’t solve issues like food safety or lack of economic opportunities. Comprehensive policy reform is needed.”
Government’s Role in Regulating Informal Trade
President Ramaphosa’s directive for spaza shop owners to register their businesses is part of broader efforts to regulate the informal sector. While some welcome this move as a step toward greater accountability, others worry it may disproportionately affect smaller, unregistered traders, including South Africans.
The government faces the challenge of balancing stricter regulations with the need to foster an inclusive economy. Support programs for local entrepreneurs, coupled with effective enforcement of food safety laws, could be key to addressing the underlying issues.
Looking Ahead
As Mashaba leads the march in Soweto, the debate over spaza shop ownership highlights broader questions about economic transformation, inclusivity, and the role of foreign nationals in South Africa’s economy.
While ActionSA and its supporters advocate for prioritizing South African entrepreneurs, critics warn against scapegoating foreign nationals and emphasize the need for systemic solutions. With planned protests in cities like Tshwane, this issue is poised to remain a focal point of South Africa’s socio-economic discourse in the months to come.
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