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Spaza shops are integral to the economy

by Moipone Malefane
November 14, 2024
in Business
Reading Time: 4 mins read
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By Moipone Malefane

Spaza shops form part of the country’s economy, they provide affordable goods, create jobs and serve as a springboard for many small businesses. However, to ensure their continued growth and success, the government should address the increasing concerns around food safety. Government has to invest in education, regulation and support for these informal businesses, these can help spaza shops thrive, protect consumers from health risks and pave the way for their successful transition into the formal sector.

This approach will ultimately benefit the economy, the communities they serve and the consumers who depend on them. So far, we have had far too many deaths, especially children, from spaza food snacks.  Recently Gauteng Premier Panyaza Lesufi said his government had given itself a deadline of  December 1 to re-register spaza shops. Once the deadline has passed, shops without a license will not be permitted to operate. One can quickly say let’s ban the spaza shops, but that is not a solution as they are an integral part of the township and rural economy.

They are a vital component in the country’s informal economy. These shops are mostly run by women who are breadwinners in their households. They sell goods and services to locals who may not have easy access to large retail outlets. As they continue to grow, many spaza shops evolve into SMMEs, contributing to the formal economy and providing significant employment opportunities.

However, to reach their potential as full-fledged SMMEs, they need a conducive environment that fosters growth, safety and sustainability. This vision has been jeopardised by the increasing reports of foodborne illnesses tied to products sold in informal outlets. Many cases have seen food contaminated by pesticides. The food poisoning crisis needs urgent attention to ensure consumer safety and protect the viability of these businesses. Often, informal businesses operate with limited knowledge of food safety regulations, and the lack of proper infrastructure and resources to store and handle products properly exacerbates the problem.

As a result, contaminated or improperly stored food can lead to widespread health issues, putting consumers at risk and tarnishing the reputation of local spaza shops. While it is clear that there is a need for stricter oversight and regulation, it is equally important to recognise that these small businesses are not intentionally putting consumers at risk. Many are simply operating in a resource-constrained environment where training, access to information and affordable resources are in short supply.

The government has in fact failed to take proactive measures that balance regulation with support for these essential businesses. It should invest in training programmes for spaza shop owners and employees on food safety, hygiene practices and proper product handling. These programmes should be accessible, affordable and tailored to the needs of the informal sector. By equipping spaza shop owners with the knowledge they need to keep their products safe, it would help prevent foodborne illnesses and improve consumer trust.

Instead of imposing punitive regulations, which could stifle small businesses, the government should focus on offering support in helping spaza shops comply with food safety laws. This can include providing affordable certification processes, regular health inspections and access to low-cost resources for refrigeration, storage and sanitation. Creating a clear pathway to formalisation could help small businesses transition into SMMEs. Let’s not forget that partnerships between government agencies, NGOs and private businesses could bring much-needed resources and knowledge to the informal sector.

For example, large food companies or supermarkets could share best practices with spaza shops or donate equipment to improve food safety. NGOs focused on public health and community development could also play a key role in offering support and training. The government should also make it easier for spaza shop owners to access financial support or micro-loans. And educating the public on how to identify safe, well-kept shops, as well as the importance of storing food correctly at home, will have a a huge impact. But ultimately, formalising spaza shops is key to their long-term success and sustainability.

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