Factors Affecting The Growth Of Locally Owned Spaza Shops In Townships

Loading player...
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.
2 Feb 2023 1PM English South Africa Business News · Investing

Other recent episodes

Paymenow data shows SA workers lose 40% of purchasing power.

A new Paymenow analysis shows South African workers have lost more than 40% of their purchasing power over the past decade—even as headline inflation stayed within target. Rene Richter, Reward & Benefits Lead Advisor at Paymenow, joins Kaya Biz to unpack why wages aren’t keeping up, how transport and utilities…
21 May 2PM 10 min

Oceana H1 Results: Lucky Star Shines as Fishmeal Stumbles

Oceana Group has delivered a resilient set of interim results despite a 6% drop in revenue. Lucky Star and Wild Caught Seafood carried the half‑year, while Fishmeal & Fish Oil struggled under weak catch volumes and global pricing pressure. CFO Zaf Mahomed joins Kaya Biz to break down margins, cash…
21 May 2PM 18 min

Inside Investec’s Strong 2026 SA Performance

Investec SA has delivered a robust full‑year performance in a tough macro environment. CEO Cumesh Moodliar joins Kaya Biz to unpack the 5.2% rise in SA operating profit, strong momentum in specialist banking, wealth inflows, digital transformation, and what the bank expects from the South African economy heading into 2027.
21 May 2PM 13 min

Stats SA Explains April’s Sharp Inflation Rise to 4%

South Africa’s inflation rate surged to 4.0% in April, driven by fuel, transport, and housing pressures. Stats SA’s Patrick Kelly unpacks the numbers, the 1.1% month‑on‑month spike, and what’s behind the dramatic swing in transport inflation. We explore regional differences, goods vs. services inflation, and what this means for households…
20 May 4PM 11 min

4% Inflation and the SARB’s Next Move

With inflation back at 4% and oil‑driven risks rising, the SARB faces a critical decision next week. Economist Sifiso Skenjana unpacks the April CPI print, the credibility of the new 3% target, and whether a rate hike is now on the table. We discuss real interest rates, global financial conditions,…
20 May 4PM 15 min