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Difference between revisions of "Spaza (South Africa)"
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These attacks have garnered extensive negative publicity for South Africa, which since 1994 has enjoyed a worldwide reputation for combating discrimination and embracing diversity. In response to violence and political lobbying by South African shopkeepers, the South African government has generated new policy proposals aimed at regulating foreign migrant ''spaza'' businesses. These include considering placing limits on the ability of foreign nationals to trade (Department of Trade and Industry 2013(a): 20-21<ref>Department of Trade and Industry. 2013(a). National Informal Business Development Strategy (NIBDS).</ref>), and requiring all businesses in the country to register with local authorities (Department of Trade and Industry 2013(b)<ref>Department of Trade and Industry. 2013(b). Licensing of Businesses Bill. General Notice 231 of 2013, http://www.gov.za/sites/www.gov.za/files/36265_gen231.pdf.</ref>). In June 2015 South Africa’s Competition Commission launched an enquiry into the business practices of foreign migrant ''spaza'' shops in South Africa (Competition Commission 2015<ref>Competition Commission. 2015. Terms of Reference: Grocery Sector Retail Market Inquiry. General Notice 580 of 2015, http://www.gov.za/sites/www.gov.za/files/38863_gen580.pdf.</ref>) to assess their impact on South Africa’s grocery sector. | These attacks have garnered extensive negative publicity for South Africa, which since 1994 has enjoyed a worldwide reputation for combating discrimination and embracing diversity. In response to violence and political lobbying by South African shopkeepers, the South African government has generated new policy proposals aimed at regulating foreign migrant ''spaza'' businesses. These include considering placing limits on the ability of foreign nationals to trade (Department of Trade and Industry 2013(a): 20-21<ref>Department of Trade and Industry. 2013(a). National Informal Business Development Strategy (NIBDS).</ref>), and requiring all businesses in the country to register with local authorities (Department of Trade and Industry 2013(b)<ref>Department of Trade and Industry. 2013(b). Licensing of Businesses Bill. General Notice 231 of 2013, http://www.gov.za/sites/www.gov.za/files/36265_gen231.pdf.</ref>). In June 2015 South Africa’s Competition Commission launched an enquiry into the business practices of foreign migrant ''spaza'' shops in South Africa (Competition Commission 2015<ref>Competition Commission. 2015. Terms of Reference: Grocery Sector Retail Market Inquiry. General Notice 580 of 2015, http://www.gov.za/sites/www.gov.za/files/38863_gen580.pdf.</ref>) to assess their impact on South Africa’s grocery sector. | ||
There is still much to learn about the scale and nature of the ''spaza'' market in South Africa. Research methods used thus far include locational mapping (Charman et al 2012<ref>Charman, A., Petersen, L. and Piper, L. 2012. ‘From Local Survivalism to Foreign Entrepreneurship: The Transformation of the Spaza Sector in Delft, Cape Town’, Transformation, 78: 47-73.</ref>), surveys (Hikam 2011<ref>Hikam, A. S. M. 2011. ‘An Exploratory Study on the Somali Immigrants’ Involvement in the Informal Economy of Nelson Mandela Bay’, Masters dissertation, Nelson Mandela Metropolitan University, http://dspace.nmmu.ac.za:8080/jspui/bitstream/10948/1315/1/ABDU%20SH%20MOHAMED%20HIKAM.pdf.</ref>) and qualitative | There is still much to learn about the scale and nature of the ''spaza'' market in South Africa. Research methods used thus far include locational mapping (Charman et al 2012<ref>Charman, A., Petersen, L. and Piper, L. 2012. ‘From Local Survivalism to Foreign Entrepreneurship: The Transformation of the Spaza Sector in Delft, Cape Town’, Transformation, 78: 47-73.</ref>), surveys (Hikam 2011<ref>Hikam, A. S. M. 2011. ‘An Exploratory Study on the Somali Immigrants’ Involvement in the Informal Economy of Nelson Mandela Bay’, Masters dissertation, Nelson Mandela Metropolitan University, http://dspace.nmmu.ac.za:8080/jspui/bitstream/10948/1315/1/ABDU%20SH%20MOHAMED%20HIKAM.pdf.</ref>) and qualitative interviews (Gastrow with Amit 2013<ref>Gastrow, V. and Amit, R. 2013. ‘Somalinomics: A Case Study on the Economic Dimensions of Somali Informal Trade in the Western Cape’, African Centre for Migration & Society report, http://www.migration.org.za/uploads/docs/report-42.pdf.</ref>). Challenges faced in measuring the market include the lack of official data, the frequent relocation of foreign migrant ''spaza'' shopkeepers, the context of fear and violence, as well as privacy concerns relating to the disclosure of personal income levels and shops’ legal compliance. Because ''spaza'' shops vary in size, ownership and business methods, attempts to measure their activities should ideally combine qualitative and quantitative approaches. | ||
In endeavoring to resolve conflict in the ''spaza'' market, state authorities have had to try and balance diverse and conflicting concerns. These include the interests of South African consumers and landlords, the country’s obligations towards asylum seekers and refugees, the economic interests of South African ''spaza'' retailers, and popular fears over restricted economic opportunities. The lack of detailed information about the market makes the resolution of competing interests in the ''spaza'' market more difficult. It also hinders the state’s ability to collect tax and ensure compliance with health and safety standards. At the same time, low levels of state regulation enable traders with relatively little education and financial resources to set up businesses for themselves, and also contributes to the spread of ownership and competition in South Africa’s grocery sector. | In endeavoring to resolve conflict in the ''spaza'' market, state authorities have had to try and balance diverse and conflicting concerns. These include the interests of South African consumers and landlords, the country’s obligations towards asylum seekers and refugees, the economic interests of South African ''spaza'' retailers, and popular fears over restricted economic opportunities. The lack of detailed information about the market makes the resolution of competing interests in the ''spaza'' market more difficult. It also hinders the state’s ability to collect tax and ensure compliance with health and safety standards. At the same time, low levels of state regulation enable traders with relatively little education and financial resources to set up businesses for themselves, and also contributes to the spread of ownership and competition in South Africa’s grocery sector. | ||