Are foreign-owned spa shops vital to the township’s economy?

South Africans, particularly those living in townships, have long called for growth in the township economy.

Spaza stores play a significant role in boosting the village’s economy.

However, at least 10 deaths of children aged six to 11 within a month have sparked an uproar in townships calling for the closure of foreign-owned and operated Spaza stores.

Children from different parts of South Africa allegedly consumed snacks from these spa shops before they died.

If the government answers the call to close these spa shops, can the village’s economy survive?

The village’s economy will suffer

This was stated by independent economic analyst Professor Bonke Dumisa. Citizen If Spaza stores are to be closed, the process must be approached with caution.

“The authorities shouldn’t just get emotional about it because it will be even more awkward if they start something they can’t finish.”

He acknowledged that spa stores are the lifeblood of the village’s economy, with many village residents relying on them to purchase basic goods such as bread, milk and eggs.

Dumisa believes that if the spa shops close, not only will the village’s economy suffer, but low-income households will also be hit hard.

Foreigners have mastered the art

Speaking about the foreigners who own spa shops, he said that whether they are in the country legally or illegally, they have mastered the art of running the shops and other retail outlets in the township because they know that the success of their business depends entirely on them.

“Some of these people even sleep in these factories, which is very unhealthy and unhygienic,” he added.

He said it’s unfortunate that some local business owners feel the government should do everything for them. The difference between foreigners and locals running spa shops is that the other group knows that it all depends on what they personally do to succeed, while the other feels entitled.

Constant raids on Spaza stores are needed.

Regarding shutting down businesses run by illegal aliens, he said they are a group of people who have mastered the art of playing hide and seek with authorities, including using bribes, to overcome any obstacles they face.

“Authorities should focus on continuous raids on all retail stores in the city to ensure that they do not stock illegal goods, whether they are owned by foreigners or locals.”

ALSO READ: What’s with foreigners and spa shops?

Local residents must restore the village’s economy

Deputy Minister of Small Business Development Jane Sithole said Citizen that the community should not attack shop owners, but rather restore the village’s economy. She said the department is ready to help local residents open their own stores.

Sithole added that spa shopping was a South African concept, but it was hijacked because locals stopped participating.

She recalled how in the past, grandmothers and fathers engaged in informal trading, but the ball was dropped, resulting in locals renting out properties to foreigners to run their businesses.

“We are calling on local residents to reclaim ownership of the shops and by doing so they will revive the village’s economy,” Sithole said.

Local residents should be alert

Acting Prime Minister of Gauteng Kedibone Diale-Tlabela said the South Africans who decided When renting out their premises to foreigners to do business there, they must take responsibility and make sure they are aware of what is being sold.

She also urged parents to take extra precautions regarding food from these outlets and for their children to avoid them.

Spaza’s economy is valued at approximately R180 billion.

Professor Waldo Krugell, an economist at the Faculty of Economic and Management Sciences at Northwestern University (NWU), spoke about this. Citizen The village’s economy definitely needs spa stores, so closing them would not be good for the economy.

“The spaza economy is valued at approximately R180-200 billion, representing about 2.5% of the South African economy, and is the main retail channel in townships.”

The role of Spaza stores can be seen in how reputable grocery stores penetrate the village economy in various ways.

“Previously, they (spa stores) mainly used two channels: getting spa store owners to source goods from the stores, and opening and operating stores in informal and rural areas.”

ALSO READ: Spaza stores: the state called for strengthening control over informal food outlets

USAave and boxer

He added that retail giants such as Shoprite with USAve and Pick n Pay with Boxer are focusing more on the informal market and expansion costs. “They bring the benefits of their bulk purchasing and supply chains to this market segment.”

However, these retail giants are also creating competition for small informal independent traders, who are likely to see their profits shrink.

To the question, what can be done to develop the economy of the village? He said: “Personally, I am not a fan of too much regulation and initiatives to make the informal sector more formal. Policymakers should quickly clear the way for informal entrepreneurs and allow them to create jobs.”

Compliance with the rules

National Consumer Commission (NCC) investigators carried out inspections at Spaza stores in Gauteng and the Eastern Cape on October 14 and 15 to determine whether store owners were complying with the Consumer Protection Act (CPA) and other applicable laws, rules and regulations.

It was found that some Spaza stores do not follow the rules are labeled with the date and still have food on the shelves after the expiration or expiration date.

Some products were also not labeled, and some were labeled in foreign languages, such as Chinese, with unclear or no information about ingredients.

These products included baby food, sweets, soft drinks, noodles, snacks, cookies, juices and other consumables.

ALSO READ: Joburg blames ‘lack of resources’ for five children’s deaths

Sales records

Some stores also did not issue sales reports or invoices, and if they did issue sales reports, they were not compliant. The CPA states that suppliers of goods or services must provide a written account of each transaction to customers who purchase goods or services.

Spaza stores came into the spotlight in early October when five children from Naledi, Soweto, died shortly after eating snacks from a local store. The sixth was admitted to Lesedi Hospital but later died.

Toxicology report

Health Minister Aaron Motsoaledi said they the toxicologist found that six children “definitely” died from organophosphorus poisoning.

Organophosphates are a class of chemicals commonly used in agricultural applications, drugs and nerve agents.

“The organic phosphate identified in this case is called terbufos. All six children died from the terbufos injection,” he said. Terbufos is found in pesticides.

ALSO READ: 10-year-old girl Alex died due to suspected food poisoning

Domino effect

Since the six children died, other schoolchildren have fallen like a domino effect, with dozens hospitalized with food poisoning and others dying.

In October 24 students from Mpumalanga Primary School were taken to hospital after eating snacks from a Spaza store.

The school said the children complained of stomach pain and some began vomiting. They allegedly ate snacks purchased from one of the local spa stores.

NOW READ: The positive side of Spaza stores