Informal business sectors make up a large part ofSouth Africa’s economy. These stores and services are important for jobcreation in a country with an unemployment rate of at least 25 percent. Butimmigrant-owned and foreign retail companies are increasing their share of the South African market. As Mario Ritter tells us, that has hurt local traderswho operate informal businesses called “spazas.”
John Stheole has owned his spaza for more than 10 years. It is a small, graybuilding in Dube village, in the Soweto area of the capital Johannesburg. Hissmall store offers many kinds of goods -- from soap to sweets.
Spaza means “just getting by.” The shops are found in non-whitecommunities where larger, more-official stores are not available, or are toocostly.
There are about 100,000 spazas in South Africa. They employ 290,000people. But few have paid attention to the part these stores can play increating jobs.
Research shows that what is called the “informal sector” in Africa is verylarge. Informal workers can be self-employed or wage-earners. Last year, theAfrican Development Bank said the informal sector provides about 55 percentof the economic productivity of African countries south of the Sahara Desert.
John Stheole has owned his spaza shop for more than a ten years in Dube Village, Soweto, South Africa. (Photo Gillian Parker for VOA) |
But business has been slow for Mr. Stheole. He is competing with a nearbystore run by a family from Pakistan.
“I must say, I am struggling…”
South Africa is the only country in the area where refugees and asylum-seekers can move freely, and have the right to work. South Africa is the onlyhope of living and working in peace for people who have fled countries likeSomalia and Zimbabwe.
But reduced profits for native traders, and high unemployment rates, havecaused tensions in the country. Immigrants are accused of taking jobs fromSouth Africans. Some also believe immigrants hurt South Africanshopkeepers by selling goods at lower prices. In September, more than 100Somali-owned spazas were attacked during four days of unrest in the city ofPort Elizabeth.
I’m Mario Ritter.
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