Gauteng township spaza shop owners face persistent challenges in accessing stock from distribution centres depriving them of affordable goods that would enable them to compete. This hinders the growth of the township economy and limits employment opportunities.

The distribution centres are an initiative introduced by Gauteng Premier Panyaza Lesufi during his State of the Province address in 2023. This initiative is meant to provide stock to spaza shop owners in the township at a lower cost, which would allow them to save money and provide job opportunities in the communities they live in. In addition, they will be able to price their goods at a competitive rate.

The Democratic Alliance (DA) in Gauteng made this startling discovery during a recent oversight inspection arranged by the Portfolio Committee on Economic Development at distribution centres in Mamelodi and Thokoza. Family Tree is the implementing agent appointed by the Gauteng Department of Economic Development (GDED) and works in partnership with the distribution centres.

At the Mamelodi distribution centre, spaza shop owners struggle to access affordable and quality bulk products. At the Thokoza distribution centre, we were informed that there is no stock to be distributed. However, during our oversight inspection, the shelves were getting stocked, but there were no price tags on the items.

The distribution centres are meant to benefit spaza shops owned by South Africans, yet when we engaged with some spaza shop owners, they stated that they were not getting any assistance from the centres.

Furthermore, no training or development has been conducted at any of the distribution centres, which negatively impacts the development of communities desperate for real opportunities.

While the implementing agent, Family Tree, claims they are in partnership with the distribution centres, they own 51% of the centre, which makes them the owners.

The DA will submit questions to the Gauteng Provincial Legislature (GPL) regarding the role of the distribution centres in boosting the township.

A DA government will ensure that Public Private Partnerships (PPP) entered into with the private sector grow the local economy as intended. If it is found that this is not the case, a full investigation will be launched, and the responsible officials will face disciplinary action.

 

Issued by Nicola Du Plessis MPL - DA Gauteng Spokesperson for Economic Development