Spaza owners buy into project
SPAZA shop owners have received much needed financial and skill support to sustain their businesses that were often up against stiff competition.
This week, a delegation from SA SME Fund, a private sector-led initiative, visited the owners in Kwamashu, who have benefited from their programme.
The township had previously been in the spotlight for xenophobic attacks.
Locals at the time said the attacks were driven by the tough competition they faced from foreigners who had taken over their businesses.
The initiative was aimed at providing expertise and funds to spaza shop owners in driving social and financial inclusion by using technology and innovation to enable them to compete in the thriving township economy.
The SA SME, in partnership with Aid 2 Pay, which provides vending solutions to small businesses, offered up to R50 000 interest repayable loans and Aid 2 Pay advanced tills where customers could buy electricity, airtime, and lottery tickets, among other services.
Beneficiary Ntombi Mkhize, who now owns two spaza shops, said her business has grown and created job opportunities, thanks to the funding she received.
“I started trading from a three metre container, but now I have extended it to 12 metres, with another shop on top.
“This has been a major boost for me. I quit my job to focus fully on my shops after I saw the improvement.
“The Aid 2 Pay till helped me in terms of record-keeping and stock-taking. The machine keeps the records, manages stock and offers a variety of prepaid products.
“I make extra she said.
Mkhize said she managed to repay a R50 000 loan within six months after she had opened another shop.
Tina Mason, Aid 2 Pay chief executive, said it has assisted more than 400 spaza shop owners in Durban and the results were overwhelming.
She said the machine, which costs R15 000, comes with everything included – as well as training.
“The results are positive, we have learnt that asking people to change their behaviour is not quite sustainable but as soon as we put capital in, people can start dreaming again. cash on commission,”
“Access to capital is a validation, it allows people to plan and realise their dreams.
“There is great potential in township economy, but supermarkets are taking over because spaza shops were not supported,” she said.
Ketso Gordhan, SA SME chief executive, said the company wanted to rescue the spaza shop initiative from being swallowed by major supermarkets that have expanded to townships.
He said there were more than 100 000 tuck shops across the country which were at the risk of shutting down due to competition.
“Since our intervention, the tuck shops are becoming bigger which means they came to meet more customer needs. They no longer go to the supermarkets because we have made spaza shops more convenient.
“We would like them to become bigger and more profitable by giving them loans and ultimately building warehouses for them”.
Mandla Sibiya, chairperson of North Region Business Association (Norba), said the intervention would assist to stabilise the situation in the township.
“This is an intervention we have been pleading for because we were not protected against supermarkets and foreign shop owners.
“We are extremely happy with the progress and we wish to get more spaza shop owners in the programmes.”
We wish to get more spaza shop owners on the programmes