Factors Affecting The Growth Of Locally Owned Spaza Shops In Townships

Rose Nkosi - President of SA Spaza and Tuckshop Association (Sasta) talks about The traditional retailer, known in South Africa as a spaza shop, is the cornerstone of socio-economic systems across Africa. Surpassing more advanced formats such as supermarkets and convenience stores, consumers buy more than 70% of their products from more than 3 million small independent shops across the continent. Despite this, the sector faces many challenges that need to be addressed in order for them to remain successful.

“Traditional retailers will continue to be the backbone of Africa’s economic environment and non-traditional participants in the ecosystem will find possibilities to grow alongside them and deliver greater financial inclusion throughout the continent,” says Nomava Zanazo, Consultant at Boston Consulting Group (BCG), Johannesburg. 

The research found that transformation in the sector is driven by who the shop proprietors are, the willingness of small retailers to modernise their businesses in response to changes in the landscape as well as a growing digital ecosystem in Africa. The modernisation of the sector as well as the available opportunities will manifest differently in each area depending on the available infrastructure, however, traditional shops will continue to exist for the foreseeable future.