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Township Spaza Shops in Trouble as Rules Keep Locals Out

By Ncamiso Dlamini

In South Africa’s townships, Many spaza shops that are run by families are struggling to survive. These small shops, once busy places where neighbours bought daily essentials and shared stories, are now being pushed out by strict government rules and unfair competition. A civil group called the Count Me In Movement says if the government doesn’t step in soon, many of these shops will close, and with them, jobs and community control over local money will disappear.

The group says the big problem is what they call “exclusion by bureaucracy.” Local spaza shop owners, many in business for years, are stuck in confusing paperwork, high license costs, and online systems they can’t access. They’ve tried to get help from the Spaza Shop Support Fund, which is meant to support small businesses, but the red tape makes it almost impossible.

At the same time, many unregistered shops, mostly run by undocumented foreigners, keep operating without the same checks or costs. This creates unfair competition, leaving local shop owners at a big disadvantage.The Count Me In Movement says they aren’t protesting but rather offering real solutions. Still, they admit time is running out.

 

They warn of three major problems if nothing changes:

Local shop owners will keep missing out on funding, hurting the township economy.

More shops will shut down, and families will be forced into deep debt just to survive.

Foreign-owned chains and unregistered shops will take over, pulling money out of the community.

“These businesses support whole households. Without help, many families could lose everything,” the group said.

They admit they don’t have case studies to prove their idea of using affidavits for verification works, mostly because they’re a new group with limited resources. But they still believe there should be flexibility. “If someone doesn’t have a birth certificate, a letter from their ward councillor should be enough,” they say.

Their solutions remain clear: streamlined one-stop municipal centres, gradual formalisation for informal traders, and mobile support units reaching remote areas. Crucially, they seek a partnership with the Department of Small Business Development to pilot reforms before the fracture becomes irreversible.

As spaza shelves grow emptier and more “For Sale” signs appear, the question hangs heavy: Will the state dismantle the barriers killing local enterprise, or just watch while local economies fall apart?

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