The Township Entrepreneurship Alliance’s 7th Tshwane Economic Summit and Expo placed a sharp spotlight on the pressures facing township retailers, with experts warning that spaza shops need stronger financial systems, reliable distribution networks and digital visibility if they are to remain competitive.
According to the Gauteng Department of Economic Development’s 2023 Townships, Township Economies & Informal Economies Report, the township economy is valued at over R900 billion, with spaza shops accounting for a significant share of daily consumer spending. Research by TIPS shows that more than 70% of township households rely on spaza shops for everyday essentials.
These figures framed the Spaza Shop & Retail Panel, where Shop2Shop’s Head of Operations, Richard Charlie, outlined key recommendations for township retailers: maintain detailed financial record-keeping and demonstrate consistent turnover to unlock growth opportunities.
Charlie said that many shop owners remain locked out of financial opportunities simply because they cannot demonstrate consistent turnover.
“We often find that the businesses are viable, but they don’t have the paperwork to prove it. Once a spaza shop starts keeping proper financial records, its conversations with suppliers and financial institutions completely change,” Charlie said.
He also stressed that cash flow remains the biggest day-to-day challenge.
“Most spaza shops operate hand-to-mouth. The money that comes in today is the same money they must use to restock tomorrow, if they face one bad week or unexpected expenses, everything stalls because they don’t have buffers or access to credit,” he said.
Charlie added that this makes it difficult for retailers to buy in bulk and secure better stock prices, thereby widening the gap between them and their better-resourced competitors.
Advisor at Harambee, Mark Schoeman said reliability remains the top determinant of whether products succeed in the township retail environment.
“Spaza owners don’t want uncertainty. If stock arrives late, or if it arrives at different prices every week, they will drop that product very quickly,” Schoeman noted.
Schoeman added that shifting consumer habits are placing new pressure on retailers.
“Customers want value for money, and they’re comparing shops more than before. If your product doesn’t meet their price expectations, you lose that shelf space,” he said.
For township entrepreneurs, daily survival requires constant adaptation. Moipone Aesthetics founder, Kedibone Segole, said rising costs, power outages, and unpredictable demand often force entrepreneurs to rethink their strategies.
“You can’t stay rigid in this environment. Every week comes with a new challenge,” Segole said.
Segole said partnerships have played a central role in keeping her business afloat.
“The partnerships we were able to build throughout our journey kept us going. But the biggest challenge we faced was access to capital. You can have the ideas and the customers, but without funding, you can’t grow at the pace you need to,” she said.
She added that collaboration among women-owned businesses helps fill some of these gaps by allowing them to share suppliers and reduce operational costs.
