As outlined in the methodology section, map 1 (above) illustrates the spatial distribution of 179 spaza shops in the entire Delft South / Eindhoven area in May 2011. This survey distinguishes between (90) foreign and (89) South African owned spaza businesses (SLF FIME Project in Charman et al. 2012). Map 4 (below) magnifies the southern part of this map and provides a closer look of spaza businesses in the case study area. It shows that of the 30 spaza businesses in the case study area in May 2011, 17 (or 57%) belonged to South Africans while 13 (or 43%) were owned and run by foreign nationals. Of the 13 foreign run spazas 11 (or 84%) were owned by Somali nationals while two (6%) were run by a Congolese and Bangladeshi spaza operator respectively. The Congolese is not shown on the map as it was not waypointed with the GPS device)
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Map 4: Illustrating the breakdown of spaza business in the case study site in May 2011.
A1 is bordered by the Delft South Main road, Mango street no. 2, Symphony way and an open field between Nielsen road and Morley Street. As illustrated on this map, A1 consisted of a total of 16 spaza businesses during the period December 2010 and May 2011 (FIME Project in Charman et al. 2012). It appeared to be a good place to start the first phase of fieldwork as it had a mix of both foreign and South African businesses. According to the map the area had a higher density of South African spaza shops, but there were also enough foreign owned businesses to pursue and include in the case study sample of 12. A1 therefore comprised of the following in May 2011: 10 (63%) South African owned businesses; 5 (31%) Somali owned businesses; and 1 (6%) Bangladeshi owned business.
The fieldwork conducted for this thesis revealed that the spaza market in Delft South has changed considerably over a period of 13 months when this research was conducted. During in-depth interviews with foreign spaza operators in the A1 area the researcher noticed a decrease in the total number of spaza businesses from the initial 16 on the SLF map to nine. Foreign owned businesses accounted for eight (or 89%) of the nine businesses while a single South African business located on the high street was all that remained of the South African businesses that previously existed in the study area. In addition, of the eight foreign run spazas businesses in A1, seven (or 78%) now belonged to Somali businessmen. The
49 remaining foreign spaza was still owned by the same Bangladeshi operator. The research therefore documented not only a decrease in the overall number of spaza businesses in the A1 area, but also a significant shift in market share and ownership of foreign businesses, most notably, through a greater presence of Somali run spaza shops. A decrease in the total number of spaza businesses, from 16 to nine, together with an increase of Somali owned shops to seven, indicates a market share increase of 47% for Somali operators in the A1 area. Changes in the spaza market in the A1 area include the permanent closure of 12 South African spaza businesses, though no foreign spaza shops were reported to have closed in that area. On the other hand, Somali spaza businesses increased from five to seven. Four of these remained in the same locality as when documented by SLF. One of the four changed shop name and upgraded its structure from a container to a building. One existing Somali business moved to a different location within the locality which used to be a South African run spaza shebeen. Of the two new Somali businesses in A1, one was a former South African spaza where the entire house was now being rented out to Somali nationals while the other was based in a newly erected brick building.
Due to the apparent lack of South African businesses in A1, the researcher extended the interview process with South Africans into two other adjacent residential areas. One of the major research aims was to understand if this shift in spaza ownership (from South African to Somali) was also occurring in other immediate areas close to the A1 site. These residential areas constitute area A2, thus expanding the initial research area to the South and East. The enlarged research area (A2) is bordered by Mango Street no.2, the Delft South high street stopping at Masibambisane High School, Grieg street flanking Masibambisane High School, Lehar street near an open field, with Ives street and the lower end of Mango street no. 2 being the Southernmost boundaries located near the N2. SLF documented a total of 14 spaza businesses in A2 area, comprising the following (FIME Project in Charman et al. 2012): 7 (50%) South Africans owned businesses; 6 (43%) Somali owned businesses; and 1 (7%) Congolese owned business.
The A2 area originally had a higher presence of foreign owned businesses than A1, with foreign nationals enjoying 50% of the market share. The researcher undertook a survey of the current status and ownership of businesses with the goal to confirm whether or not the balance in spaza ownership had remained the same and also to document all changes. The survey data is based on shop-to-shop observations as well as anecdotal evidence collected
50 through informal conversations with neighbours, people passing by in the street, delivery van drivers and from customers who support the spaza shops in the case study area.
The survey data revealed that, unlike A1, the total number of spaza businesses in the A2 remained the same. However, as in A1, a major change in terms of business ownership and market share had taken place. Of the 14 spaza shops that currently trade in the A2 area, foreign spaza operators now account for 10 (or 71%) of the total number of businesses while South African ownership has dwindled to only 4 (or 28%). In addition, of the 10 foreign owned spazas, one business still belongs to the same Congolese national while the other nine (or 90%) are run by various Somali operators.
The survey data therefore shows a major shift in market share in the A2 area where South African owned spaza businesses have decreased by 22% with Somali operators gaining this share of the spaza market. The identified business changes in the A2 area include the permanent closures of four South African spaza businesses; one of these spaza operators now struggles to make a livelihood from selling a few bottles of beer illegally as she has not been issued a liquor license (32fSA10O-CLSD). Somali spaza shops, however, increased by three. Of the three new businesses, two were based in shipping containers while the other was a located at a former shebeen spaza previously run by a South African out of his garage. No foreign owned spazas we reported to have closed down. Two new South African spaza businesses had opened. One was a relatively large home based spaza and the other was a smaller spaza operating from a shack in the front of her family home (and sometimes from within the house). The owner of the larger spaza has various income streams, including a spaza shebeen business in Khayelitsha and taxi business with a private tender to service four primary schools in the surrounding area. This spaza operator is also suspected to be trading in illicit liquor sales from his shop in Delft South, as suggested by the presence of approximately 40 crates of beer stored in a room next to the spaza shop area (See figure 6 in Appendix). The owner of the smaller spaza established the business precisely because two of the four South African spaza businesses that closed in the A2 area were located in her street. She said residents were complaining about having to walk far to access daily goods such as bread and milk and therefore saw this as an opportunity to establish a shop. One of the four South African spaza businesses that closed decided to specialise in arcade games (See figure 7 in Appendix), something that foreign spaza operators do not allow at their for fear that it will attract loiters and local thugs to the shop. The participant no longer contemplates going back into the spaza business.
51 It was interesting to note during the research that, of the five remaining South African spaza businesses in the A2 area, four were suspected to be trading illicitly (or at least confirmed that they used to trade) in beer. Three of the four said that, due to the competitive nature of foreign spaza operators who have come to dominate the market in Delft South, ‘it merely makes sense to for South African spazas to also sell beers and other things (like takeaway food) that foreign spazas do not (or cannot) sell’ (Field notes, 36mSA0.25O). All three business owners applied for a ‘off consumption’ liquor license with the Western Cape Liquor Board in the last two years, but none had been approved. In Delft South, liquor is one product most foreign spazas do not seem to be selling (See figure 6 and 8) due to the religious beliefs of many Muslim operators.2
When combining the two major areas of the case study site the overall spaza landscape in Delft South is still dotted with spaza shop businesses. However, over the past 13 months, opportunities for South Africans to utilize spaza business, as a key livelihood strategy, have further declined as foreign competition in the trade has intensified. Over the last 13 months the spaza market in this particular part of Delft South has undergone significant change in terms who now owns spaza businesses. A year ago there was a relative balance in terms of (spaza) market share between South African and foreign run businesses, that is, of the 30 spaza businesses 17 (or 57%) belonged to South Africans living in the area and the remaining 13 (or 43%) to foreign nationals. The researcher found a dramatic drop in South African owned businesses from 57% to 22%. South Africans now only own 5 of the 23 spazas in the case study area. Conversely, foreign businesses have now come to dominate the spaza market, as they now account for 18 (or 78%) of the 23 spaza businesses documented during this research. This equates to a market share gain of 31% for foreign spaza operators. It is interesting to note that at the helm of this ever changing and fluid spaza market is the numerically dominant Somali spaza operator, whose business appears to be more sophisticated and certainly more robust than his/her South African counterpart. As the data suggests Somali nationals now own 17 (or 94%) of the 18 foreign run businesses in the case study area. Maps 5, 6 and 7 below present an updated view of the current spaza ownership in the case study area.
2 I return to this issue and point to a link between the liquor trade and the survival of South African spazas at a
later stage in the discussion section of this paper.
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Map 5: Somali spaza businesses have clearly dominated the market
Map 6: A number of longstanding South African businesses have closed and no longer operate. Some have turned to selling liquor; some have opened games shops, some women who ran spaza shops found work are employed as domestic workers while others are still unemployed.
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Map 7: Current distribution of spaza shops.
As a business the spaza shop remains, in the words of Charman et al (2012) ‘ubiquitous among city townships’ like Delft South. Their research highlights an ever growing presence and dominance of one spaza type over another which is transforming the character of this state of ubiquity. The results from my case study supports this argument and has further illustrated that foreign ownership in the spaza market continues to grow even when the total number of businesses in an area has dropped. It is a change which may present serious economic and social consequences for many South African residents doing spaza business as a means to make a livelihood in Delft.
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