Woman entrepreneur proves locals can crack it in spaza sector

Leane Hendricks, a 38-year-old mother of three from Wallacedene in Kraaifontein, Cape Town, started a spaza shop in her community with just two bags of chips, sweets and lollipops.

She was driven by her dream of becoming her own boss and serving her community.

“I started a spaza shop because there is a big need for shops in our area. I wanted to keep my prices low because many foreign-owned shops overcharge people,” she said.

Spaza shops play a vital role in township and rural economies, with the informal sector contributing more than 5% to South Africa’s GDP.

The spaza shop sector is at the centre of ongoing heated debate focused on immigration enforcement, food safety, business registration and compliance; and raising deeper questions about who has the right to trade in township spaces and how local economies should be protected and developed.

National Black Business Caucus CEO Volchere Kgekwane argues that unfair competition from businesses operating outside the law is one of the biggest challenges facing township entrepreneurs.

“The problem with an unregistered, non-compliant shop is that you can’t compete with it when you want to be compliant. Someone else is just doing whatever they can, whenever they can, without following any of the rules and regulations,” Kgekwane said.

He highlighted red tape and the long, protracted period it takes to get government accreditation as one of the reasons some South Africans are not complying with legislation.

“People are desperate to get started, so they begin trading before completing the process,” he said.

He added that stronger support for black-owned township businesses is essential if local entrepreneurs are to compete meaningfully in their own economic spaces.

A bumpy start and lessons learnt

Hendricks’ foray into the sector wasn’t without glitches. She stocked what was labelled as maize meal, only to discover, to her horror, that the package contained bread flour instead, highlighting the ongoing challenge of counterfeit goods in the market.

“I decided I would only sell genuine products, so I travel to Giant Hyper to buy my stock,” she said.

As the business grew, Hendricks secured daily Blue Ribbon bread deliveries and now wakes up at 3:30 am to receive fresh stock before leaving for work. Her husband manages the shop during the day, making it a family-run business.

“I know the struggles our people face every day, so I’m trying to help them instead of overcharging them,” she said.

Hendricks also operates as a Shop2Shop trader, allowing customers to make card payments and access other services.

“One day, when I went to load my Shop2Shop machine, someone told me, ‘But you are South African. We are not used to South Africans owning Shop2Shop machines,’” she said.

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“As far as I know, there are only two South Africans running spaza shops in my area. I don’t know if people are scared or if they are just used to supporting foreign-owned shops.”

Bongani Dlamini is one of a rising number of South Africans reclaiming the spaza shop market after recent anti-illegal immigration protests calling for undocumented foreign nationals to shut their businesses and leave the country.

“Our economy can improve because our money will continue circulating within our communities and within our country. We must encourage one another, be courageous and continue building businesses,” he said.

How to build a compliant and sustainable spaza shop

ASC Food Safety Consultants warns that entrepreneurs planning to operate a food business must first understand the legal requirements.

Both South African and foreign nationals must obtain a Certificate of Acceptability from their local municipality before operating a food business. Foreign nationals must also hold an immigration permit that allows them to trade in South Africa.

The certificate is issued only after a municipal inspection confirms compliance with Regulation R638 under the Foodstuffs Act, which covers hygiene, pest control, waste management, and food storage and handling.

Beyond compliance, industry experts say sustainable growth depends on sound business practices.

Many entrepreneurs start small, often from a garage, front room or container, before expanding as demand grows.

Instead of stocking everything at once, business owners should focus on fast-moving essentials such as bread, milk, maize meal, cooking oil, sugar, snacks, cool drinks, airtime, electricity vouchers and household goods.

Keeping accurate sales records, tracking customer demand, managing stock wisely, reinvesting profits and embracing digital payments can improve cash flow and support business growth.

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