4 CARACTERÍSTICAS DEL DERECHO PROCESAL.

Of the seven Somali operators six reported receiving regular deliveries from various small, medium and large South African companies, only one participant 50mSom02O reported fetching all of his stock directly from suppliers, as he also operated a second business transporting spaza stock (the participant emphasised that he transported spaza goods and did not involve selling products sales as mobile distributors did).

These stock deliveries are distinct from those being conducted by Somali and other non- Somali mobile distributors in the area as these do not involve ‘shop to shop sales’ and the terms of payment are usually cash on delivery. The most common product received from South African delivery vans, on a daily basis, is the 1 litre full cream milk in a plastic sachet. The colloquial term for this product is ‘papsak’ milk. At the time of research this product sold for between R5.50 and R6.50 per unit in most of the Somali owned spazas. South Africans, however, sold the exact same brand of product, but their cheapest retail price was the same as the Somali operators’ most expensive price, that is, R6.50 per unit. South African operators reported receiving this product from the same South African delivery van(s) that Somalis did. In a conversation with one of the Somali participant’s the researcher asked how it was possible for Somali spaza operators to sell the product cheaper without incurring losses, his response was the following:

…well you assume that South Africans [spaza owners] are paying the same price or have the same deal as we [Somali spaza owners] do (field notes, 30mSom0.5P). According to this individual, a South African owned company, based in Gatesville Athlone (Cape Town), was the main distributor of the ‘papsak’ milk in the Delft South area. This company, the researcher was told, also distributed eggs to many of its customers. The participant 30mSom0.5P further explained that the company was in fact buying these products directly from a ‘big Somali businessman’. He would not disclose where this businessman operated from, but mentioned that ‘he is based in Cape Town and everyone knows him…he operates in all the main areas’ (30mSom0.5P). The participant was referring to particular areas within the Cape Town Metro Region, such as Bellville, Delft, Elsies River, Capricorn Park, Retreat and Parow which Somali’s regard as business ‘strongholds’.

121 During the observational phase of the research, the researcher was able to confirm at least half a dozen delivery vehicles that all belonged to the same South African company, supplying large volumes of ‘papsak’ milk and eggs to a great majority of the spazas in the case study area On one occasion the researcher managed to flag down one of these delivery vehicles and asked the driver to describe the business service. The driver responded with the following:

…we [the others working for his company] deliver this brands of eggs and papsak milk…I started working for them [the supplier in Gatesville] about six weeks ago….we mainly do milk and eggs at this moment in time. I have about seven Somali shops and three locals [South African spaza shops] to deliver to everyday, but at some point I must have delivered eggs and milk to almost every Somali spaza in the Delft South area since taking this job…as well as some locals. The most popular brand of milk being delivered here is the 1 litre papsak…we are the main one’s doing this in Delft but there are definitely distributors of this brand of milk in places like Bellville…my boss is one of the main milk and egg agents [distributors] for this type of milk and I think easily about 97% of our entire customer base is Somali spaza shops. I do about two bakkie loads of milk per day every day from Monday to Friday…some of the other agents can even do more and sometimes even on weekends. I don’t know exactly how much fits in the van…probably around 150 to 200 papsaks per load (Informal conversation with delivery man, July 2012).

The respondent was unsure about where his (South African) employee sourced the ‘papsak’ milk from and he could not confirm whether or not it was being supplied by the ‘big Somali businessman’, as participant 30mSom0.5P had reported. In the field, the researcher observed two other South Africans delivering additional products besides milk, bread and eggs to the same six Somali participants who reported receiving regular deliveries from formal South African companies. The deliveries seemed to have been conducted on behalf of a different supplier. These individuals usually came around every second day to drop off items such as ‘bompies’ (non-dairy ice-lollies) and yoghurt, and appeared to be doing this on a much larger scale. Somali operators reported knowing of no more than six non-Somali mobile distributors and most confirmed that there were approximately 20 or so Somali distributors operating between Delft South, Voorbrug, Leiden and Suburban. These individuals also regularly distributed stock in other areas such as Bellville, Elsies River and Parow. Other nationalities

122 involved in distribution include Burundians, Egyptians, Malawians and Nigerians. When compared to non-Somali mobile distributors in the area, Somali individuals do not only dominate the distribution business, but most also offer a much larger variety of products to spaza shops. Somali distributors are also favoured by some, for their ‘willingness to negotiate and cut prices on particular items’ (field notes, 39mSA10O). The following tables list products the researcher observed being offered by Somali mobile distributors; in total there were 19 items. Table 11 records products that were sold to spaza operators in bulk packs, while table 12 presents a table of items that spaza owners procured on a smaller scale, but nevertheless illustrates the variety of stock available to spaza owners when purchasing ‘on the door step’.

One Somali operator described that he preferred to purchase particular items from two separate Somali distributors who knew very well:

…For products such as cigs, candles, chips, toilet paper, sugar, rice, washing powder and sweets I usually wait for the two Somali distributors because I know them personally and their price is always good for me because we are family and did business before…but there are more than 12 of these [Somali] guys… some own shops here others have shops outside while others are just interested in selling to you from the vehicle (field notes, 24mSom01O).

This participant spoke of having personal connections to the two distributors he procured stock from. Both distributors were individuals from the same Hawiye clan; one happened to be a distant cousin he grew up with in Somalia, while the other he knew through a sub clan affiliation (Abgal) and was also one of two individuals he had gone into a spaza business partnership with when he first arrived in Delft South. This ex-business partner, he reported, decided to use the profit made through the sale of the first spaza container during 2011 (R20000) and invested it in a mobile distribution business. In his narrative the participant also confirms that Somali businessmen in Delft South dominate this trade in Delft. This suggests that Somali networks are now dominant within a larger portion of the spaza value chain, that is, between producer and the smaller retail/grocery shops.

Somali operators reported that the main reason for purchasing from the distribution network was to obtain a large variety of spaza products at ‘cheap prices’ and because the businessmen themselves could be trusted as ‘we usually know the person … through friendship, clanship

123 or being family’ (32mSom0.5P). These distributions helped to ensure that their spazas were regularly stocked without necessarily having to leave the shop. As a result, participant one respondent stated that in this way ‘the shop is always manned and so the distributor can come anytime’ allowing for the maximisation of spaza trading hours available on a particular day (24mSom01O).

Of the seven Somali operators six reported regularly purchasing from Somali distributors, while three reported having previously purchased from South African distributors, but at irregular times. Less than half of the Somali sample also spoke of buying specific stock such as biscuits, chocolates and eggs from Egyptian, Pakistani and Bangladeshi distributors, but added that this was only done if their main (Somali) distributor was unable to source such products in time. Somali operators acknowledged the presence of both Ethiopian and Malawian distributors in Delft South, but only participant 30mSom0.5P reported ever purchasing stock from these individuals adding that ‘the situation with belonging to a minority [Issa] clan has meant that we don’t also get to buy from other Somali distributors…we have no other family here doing that business so are forced to buy from the Egyptians, Ethiopians and Bangladeshi’s but only if there is extra money which is not often’. Examples of Somali mobile distribution in Delft South: Distributor 1 – where distribution serves as the key business

This 25 year old distributor supplies mammas pies, sausage, chicken chunks, eggs, chips and bompies to five spaza shops, three shops in Delft, of which one is South African owned, while the other two belong to Somali businessmen. He also services two spaza shops outside of Delft South, one located in Bellville and the other in the Elsies River, but spoke of other places the business has taken him into as well. After selling a spaza container in mid-2011, he and two other partners decided to take the R20000 profit they each received and go their separate ways. The partners continued doing spaza work while he opted to go into the mobile distribution business; he sometimes distributes his products to ex-spaza partners as well. He alone owns this business and has never had a partner while doing distribution.

…I have no partners like in the spaza…I just pay others who I know that want work if I used then for the day to pack unpack carry and so on…I get the stock mostly from Bellville at the cash and carries [owned by other Somali businessmen] that are there…there are so many to choose from in Bellville and very good prices, I try hard to give the same good price to my customers…those that don’t buy from me will

124 suffer as they pay more…yes there are at least 20 other people in Delft doing what I am doing…maybe even as much as 50 but there is still much business here for others to do in Delft…it is hard business but can be very good…some of these guys doing the deliveries are spaza owners in Delft, especially the Somali ones, but others they just focus on the mobile sales. The guys also operate in other parts of Delft like Voorbrug, Leiden, Suburban…the entire area you can see…even four or five areas outside like in Elsies River, Parow, Bellville but even places like Capricorn Park and many areas around Delft…I personally help to buy for five shops once a week, early in the week but on that day we do several trips to the cash and carries and as we have to do a lot of buying then after we focus on the selling, and so it goes on and on every week.

He observed that many spazas (foreign and South African) had problems with transport but demanded specific wholesale products for ‘good prices’. The distributor ended off the conversation explaining that he did not feel the need to go back to owning a spaza or doing that kind of spaza work as that part of the spaza trade was simply oversaturated at this point in time. The distribution business, on the other hand, was still growing in Delft South and according to him, had much potential given this network linkage to wholesale suppliers in Bellville.