AN ASSESSMENT OF THE STRUCTURE AND OPERATIONOF SPAZA SHOPS IN A SELECTED TOWNSHIP IN SOUTH AFRICA
AN ASSESSMENT OF THE STRUCTURE AND OPERATIONOF SPAZA SHOPS IN A SELECTED TOWNSHIP IN SOUTH AFRICA

Summary/Abstract: Spaza shops are an important component of the South African township economy as they provide vital goods, employment and an income to most township dwellers.This notwithstanding, the sustainability ofspaza shops has been problematic, with most closing down within the first few years of operation.Against this backdrop, thispaperassessedthe structure and operations of spaza shops in the Mankweng area and investigated the problems that inhibit their viability.A quantitative approach that necessitated the use of a structured and closed ended questionnaire was adopted to collect data from 50 spaza shop owners.A GPS device provided the coordinates utilised to map the spatialdistribution of the spaza shops in the area. The results suggest that most of the spaza shops surveyed were foreign owned with the preponderance of Ethiopians (34%) and Somalians (34%). South African spaza shop owners constituted 26% of the sample.The study notes that although spaza shops generate income for owners and are integral to the township economy, they face a variety of challenges. These range from crime and theft, competition among many shops and a lack of access to credit facilities that could enable the expansion of the business. The study recommends that spaza shop owners forma union-platform from which they can share strategies of overcoming challenges. Such a union would also enable spaza shop owners to access funding from government schemes and private investors alike so that their operations are expanded.

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