Spaza shop informal businesses are crucial cogs in the township economy.
Mention spaza shops and, for many people, what comes to mind are images of illegal immigrants who operate outside the law, pay no tax and, as a result, are often the victims of xenophobia. But this is a complicated sector, and there is far more to it than meets the eye of the average suburban shopper.
Spaza shops may be informal, meaning they are unregistered and largely cash based. However, they pay rent to local landlords, provide employment to thousands of people, source goods from local dealers and pay input VAT – which unregistered businesses cannot claim back.
They are a vital cog in the township economy, yet they are overlooked by the government, receiving little or no support. Just how vital their role is within communities has become patently clear over the past 18 months of lockdown.
The lockdowns, in their various iterations, caused economic deprivation and hardship on an unprecedented scale. Within weeks of the first lockdown in 2020, local community organisations began to report rising levels of hunger among pregnant women, young children, foreign nationals and vulnerable families. Starvation escalated alarmingly.
The Solidarity Fund and other…