3 EVOLUCIÓN DEL DERECHO PROCESAL.

Spaza operators in the case study area conduct regular business with what South African shop-keepers and the Bangladeshi operator referred to as ‘Somali agents’. South African operators reported that there are between 12 and 20 ‘agents’ operating in mobile distribution networks that apparently stretch far beyond the bounds of Delft South. There were reports that a few non-Somali actors were also involved in this business. The distributors drive around to various spaza shops selling a variety of products on what was considered by some South African operators to be a relatively ‘large wholesale scale’ (see table 11 in Appendix). Each distributor was thought to service between four and five spaza shops. These business people were referred to by Somali and South African operators in the sample as ‘distributors’.

…No but many times the Somali agents [mobile distributors] come to ask if I want to buy products for the shop for a good price like meat, chicken chunks, sausage, pies, chips, sweets…even the 'wareme worsies' [warm penny polony]. They usually distribute the products in these white vans with the high tops and when they open it up it is packed to the brim full of all kinds of things (field notes, 30fSA02O).

116 Three of the five South African participants said they usually received a daily delivery from South African companies supplying bread and dairy products such as milk and yoghurt. One of these participants also received a weekly delivery from a soft drinks and chip company. The role of these distribution companies as suppliers has gone into decline as competition with foreign spazas has increased and with the emergence of Somali distribution agents. In the case of bread, two South Africans reported bread sales had decreased drastically over the past two years as customers were able to obtain cheaper bread from foreign shops. One participant complained that she used to order a minimum of 10 crates (or 100 loaves) of mixed white and brown bread every day, but stressed how they [South African spazas in Delft South] had been reduced to selling 1 crate (or 10 loaves) over a one to two day period, because their customer base has been all but destroyed. Participant 41mSA07CO expressed similar sentiments:

…I don’t buy as many [loaves of bread] as I used to so…sometimes they [the bread company] do not come maybe because sometimes I do not take as many times as I have in the past, sometimes I am left with stock so I have to try and sell it the next day…our customers for these products are almost gone.

One participant (30fSA02O), who received no deliveries at all, spoke of her dilemma with having ‘to fetch all [her] products in a taxi’, while another participant (39mSA10O) said his shop survived ‘at the mercy of the Somali agents [mobile distributors]’ who provided him with ‘x’ amount of credit on a weekly basis:

…I am grateful as from them [Somali mobile distributors] I get the stuff that most other Somali agents in the area also provide…I get [spaza stock] from at least one Somali agent a delivery every day, sometimes even twice a day and seven days a week (field notes, 39mSA10O).

Of the five South African operators in the sample, participant 39mSA10O was the only operator to acknowledge having an actual link to the mobile distribution network currently operating in Delft South. He reported choosing to do business with these individuals from the time when the opportunity was first offered, about three years ago. The participant added that it was the only way he could hold on to the spaza business and ‘delay the temptation’ of wanting to rent out his shop to other Somali businessmen, who had shown interest in the business. At the time of research he purchased a large majority of his spaza stock from two Somali mobile distributors and also one Pakistani individual. The one Somali distributor

117 allows him to purchase ‘cheap’ chips, sweets and sausage, as well as bulk eggs ‘on the book’ (on credit), twice a week, while another specialises in selling bulk meat, chicken packs, pies and sausage. The latter also offers him credit once a week. He applauded the Somali mobile distributors for having ‘easy’ payment options and for being ‘approachable and always willing to negotiate’ (field notes, 39mSA10O). The Pakistani distributor, on the other hand, provided him, primarily, with ‘cheap’ chocolates and biscuits, but did not allow him to purchase these products on credit.

One participant (39mSA10O) provides an account of how and why he got access to credit from Somali nationals, operating in the mobile distribution network. This service enabled his business to stay afloat in the Delft South spaza trade, amidst varying South African operator perceptions of credit being easily available to all South African spazas or only a select few. Credit and the supply of certain spaza goods have not been afforded to all spaza shops in the area. Whilst mobile distribution networks have enabled some South Africans an opportunity to enhance their competitiveness, it certainly has not benefited the majority of the remaining South African spazas. All South Africans shop keepers seemed to be aware that there were Somali distributors serving existing spaza shops in their area (and the greater part of Delft), offering to sell large varieties of spaza products at reportedly ‘good prices’. Two participants, in particular, were adamant that this was merely an attempt to exploit already struggling South African business owners and neither believed that Somali distributors actually cared about their plight. One of these individuals spoke of how Somali distributors refused to put her in contact with their suppliers, who sold particularly popular and fast selling products, such as ‘cheap’ cigarettes, even after she had attempted to start a business relationship with him. She also mentioned that specific chip and sweet products, which attracted the youth and their parents, were particularly difficult to source through other formal supply chains.

The key point to understand is that many Somali distributors do not only sell standard products, but have also been known to sell ‘non-invoiced’ goods (commonly referred to as contraband products), as a cheaper alternative (field notes, 32fSA03CO-CLSD and 30fSA02O). These products are not necessarily bought from formal wholesalers as this would usually attract unwanted attention (from the law) to a formal supplier. This is most likely the case when prices offered by the distributor are drastically reduced and undercut the price of the same product offered in other mainstream retail stores. Access to these products, especially contraband tobacco, is essential for a successful business, as this product attracts significant numbers of customers to one’s shop. Cheap cigarettes were reported by South

118 Africans and foreigners alike to be the best ways to increase one’s customer base. It therefore makes business sense for the distributor to refuse the South African operators request to connect her to their suppliers. In this participant’s view, certain ‘cheap’ products were being offered to all South Africans who wanted it, but items such as ‘cheap’ cigarettes would only be offered to a select few, that is, to particular South African, Bangladeshi and other foreigner owned spazas distributors had ‘previous or other’ business dealings with the agents. I asked this participant to elaborate on why she felt this way, she reported the following:

…unless they have done business with you [South Africans] on a previous occasion or if you do other kinds of business with them [Somali mobile distributors]…especially with the fast sellers [quick selling spaza products] like cheap cigarettes and certain chips and sweets they distribute...from what I remember they don’t usually deal with general South Africans [spazas they have no history with]…once I asked one of the Somali agents if he can organise a carton or 'gross' [box containing 50 cartons] of Pacifics and he said his brother deals with that. They would not share the cheap cigarettes with me because I never bought from them before (field notes, 36fSA04O-CLSD).

In her response the participant made specific reference to the relationship between a well- known Somali spaza ‘boss’ who, through his marriage to a South African woman, became a partner in a South African spaza and cigarette wholesale business located on the Delft High Street. The participant spoke about the reasons why she felt South African spaza owners in Delft were being offered ‘cheap products’ at ‘good prices’ and why Somali mobile distributors offered some people the option to buy on credit. Firstly, being offered ‘cheap prices’ on ‘specific products’ was merely a ploy, in her view, to ensure that South African spaza owners spend money on spaza goods purchased from Somali businessmen rather than going to respective formal suppliers, stating that in this way ‘…they keep the cash within their [Somali] business operations [network]’ (field notes, 36fSA04O-CLSD).

Secondly, offering South Africans the option of purchasing on credit on a weekly basis with ‘easy payment options’ was also seen by her as a way to ensure that South African spaza owners became indebted to Somali businessmen. In accepting these terms, South African business owners, she reported, ran the risk of possibly losing their spaza businesses if they became too indebted to one or more Somali distributor. The respondent felt that the distributors would eventually attempt to take over the spaza by writing off debt. The

119 respondent’s fear; echoed by a few others in the sample, suggest that from a South African perspective, Somali businessmen are known to view ‘spaza shops’ or businesses as collateral and is something that formal suppliers do not recognise purely because they no capacity to run the shops themselves. However, as previously stated, Somali businessmen have a large network of young aspiring men to choose from.

On the other hand, it was frequently reported that the credit being supplied by Somali mobile distributors could possibly be playing an important role in the survival of some South African spaza shops, despite the fact that the extension of credit was perceived by some as being like a proverbial ‘double edged sword’ (field notes, 39mSA10O, 36mSA0.25O and 32fSA03CO- CLSD). Despite the associated risks, access to credit was perceived as a possible coping mechanism during a time of tough business competition and economic/financial strain. The Bangladeshi shop keeper said he bought from Somali distributors at least once a week and also from a group of Burundi doing similar distribution business in the Delft South area. The Somali distributors were said to each be servicing up to five spaza shops regularly throughout the week. Most of the spaza shops that they serviced, and sold to on a regular basis, were Somali owned businesses.

When asked about whether or not the mobile distributors owned spaza business in Delft South three South African participants emphasised that the distribution business was part of the spaza business, suggesting that the aim of Somali businessman was first to establish oneself in spaza business and then to start selling a large variety of ‘cheap’ products to as many other spaza shops. As one female South African operator reported:

… some spaza shops here in Delft run a double business, they do deliveries to their own stores then also help their so called brothers who do not have transport…but they get paid to do this and earn extra money from that and from selling products directly at ones shop…they are cheap so most times people give in and buy from them [Somali mobile distributors]…you must be very stubborn and proud not to buy from them…they also like to service other Bangladeshi and Pakistani shops but only a few South African spazas (30fSA02O).

The data from the field research suggests that some Somali operators not only earn incomes from their spaza shops and their transport businesses, but are also currently involved in (or establishing) wholesale type mobile distribution businesses. The issue of mobile distribution is presented using particular case studies that identify two ways Somali individuals reported

120 conducting this particular business. One case concerns distribution as a separate business, run by individuals who do not own spaza shops, while the other case shows how distribution comprises a supplementary business operated by Somali spaza shop businessmen.