A report by the North West University (NWU) seems to suggest that the province’s township economy which includes the spaza shop economy and other local industries is dominated by nationalities other than South Africans.
This document which Independent Media has seen under the title: A document of strategic intent regarding selected micro- and small enterprise issues in the village-township- and small ‘dorpie’economies of the North West Province comes at a time when the country is battling high unemployment numbers and an influx of illegal immigrants who are said to be competing with SOuth Africans on the jobs and informal economy fronts.
On Thursday, media reports indicated that more than 15 undocumented illegal immigrants who could not be accounted for, were found hiding at a house in Centurion. This and many other similar incidents have led to debates about the country’s stance on immigration and the township and local economy which is highly dominated by outsiders.
The document shows that the Northwest Province’s local economy is dominated by Bangladeshi at 43%, Ethiopians at 20%, South Africans at 18%, Mozambicans at 6%, Somalians and Pakistanis at 6% and 5% respectively.
These figures which can be applied to the rest of the country are a course for concern and an anomaly that leader of the African Transformation Movement (ATM), Vuyo Zungula has decried.
Reacting to this report, Zungula who in the past called for South Africans to be prioritised in their own country, said, “This anomaly needs to be corrected. South Africans in general, and black South Africans in particular, need to be dominant players in all sectors of the economy.
“We can’t accept that the fate of black South Africans is grants and handouts, whereas foreigners are economically active,” Zungula said on Wednesday.
Last week, the South African Civic Organisation Movement (SANCO) reacting to the same report called for the prioritisation of the province’s township economy and SMME’s.
SANCO provincial spokesperson, Palesa Zizi says government is not doing enough to prioritise locals as government fails to enforce its own by-laws.
“The South Africa’s legislation, including the Immigration Act, the Business Act, and municipal by-laws also disadvantage small businesses, the majority of which are run by Black communities.
“By allowing asylum seekers and refugees to participate in small economic spaces such as the spaza, tuck-shops and salons, which in our view should be reserved for the citizens, SANCO calls for a reconsideration of these regulations, advocating for the prioritisation of citizens in these small economic spaces, as is the case with the Liquor Act,” said Zizi.
On immigration, Zungula said: “there needs to be stronger border controls to ensure legal movement of people in the country. There needs to be business inspectors going around checking up on illegal immigrants in work spaces.”
Zungula says adequate training for police officers is needed to deal with immigration laws, and harsh sentences must be enforced for those who are found to be involved in corruption.
Speaking to Saturday Star on Thursday, leader of the recently launched Citizens for Change Movement, Duduzile Ngcobo Letseli said illegal immigrants were not the only sector of society that is to blame for the destruction of the local economy, especially, the spaza shop economy.
“Illegal immigrants are not the only ones who have contributed to the destruction of the spaza shop economy which many of us were raised by. The malls also have contributed to the decline of this economy. So, we should not only blame the undocumented illegal immigrants, but also the malls. Also, you must remember that illegal immigrants and immigrants in general are not only those from the African continent, Asians and other nations also contribute to the crisis as well,” Ngcobo-Letseli said.
According to Jacques Sibomana, recent research conducted by Accenture reveals both opportunities and challenges for Spaza shops, which are integral to communities.
“The informal sector, where Spaza shops thrive, accounts for a significant portion of the nation's annual food expenditure, estimated at 30%-40%. This sector represents a colossal potential market value of R178 billion, presenting substantial opportunities for businesses...The time has come for South African society to come together and redefine the role of Spaza shops. Let's support the establishment of community-operated convenience stores that meet health standards and local regulations,” Sibomana says.
Saturday Star