Talk of large formal retailers being allowed by government to spread their tentacles into the spaza shop market is splitting the black business community down the middle. Two diametrically opposed views on the thorny subject are beginning to emerge, with one camp supporting a tentative push by white-owned retailers into the spaza shop market and another camp arguing for retailers to be stopped in their tracks before they gobble up the lucrative market straddling South Africa’s townships and rural towns.
The issue came under discussion recently at a second instalment of a live Facebook panel discussion, known as Lockdown Convo, which I participated in.
The theme of the discussion, moderated by Miso Tini, posed this question: What does it mean for black business if Pick n Pay and Shoprite can enter the spaza shop market?
The panel that tackled the matter of whether these retailers should be allowed to operate in the sector also included Sabelo Macingwane (president of the National African Federated Chamber of Commerce and Industry, or Nafcoc), Gauteng department of economic development (GDED) official Tseliso Motsimo, and spaza shop start-up owner Mxolisi Goodman Buthelezi.
In the camp that entertained the idea of participation of formal retailers in the spaza shop market, either through franchising or partnership with black South Africans, were Macingwane, Motsimo, and me.
Buthelezi was vehemently opposed to big retailers owning spaza shops, fearing that they could end up totally dominating that market.
Esta historia es de la edición 16 July 2020 de Finweek English.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición 16 July 2020 de Finweek English.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
