ActionSA’s plan to audit foreign-owned spaza shops in eThekwini allegedly rejected by ANC

A war of words has emerged in KwaZulu-Natal (KZN) following recommendations for auditing illegally foreign-owned informal grocery stores, commonly known as spaza shops.

ActionSA eThekwini Councillor Zwakele Mncwango revealed that a program addressing this issue was presented to the legislature on 30 September, where it faced rejection.

According to Mncwango, ActionSA agreed to the initiative but proposed an amendment to audit all foreign-owned stores.

The initial recommendation, presented by the municipality’s business support unit, aimed to assist spaza shop owners with registration, skills development, and business sustainability.

While supporting the original recommendation, ActionSA said it proposed an amendment to conduct a thorough investigation and audit of spaza shops in eThekwini to determine how many are owned or run by illegal foreigners.

Sangweni told The Citizen that the party’s main concern was the prevalence of illegal foreign ownership in township economies, not all foreign business owners.

“We’re going to support other shops, but we can’t just deal with a symptom without understanding the nature of the problem. Out of 10 spaza shops, you will find that seven of them are run by foreigners. That’s a fact,” Mncwango stated.

Mncwango said he did not understand why the African National Congress (ANC) rejected the recommendation to investigate foreign-owned spaza shops.

“But ANC couldn’t even argue. They just went against the recommendation and even the DA (Democratic Alliance ) as well. [The DA] just abstained without saying why they’re abstaining. Which for me, and for our electioneers, says we find it very strange. In certain important items, the peace parties cannot support a recommendation and, at the same time not provide their motivation.”

ANC’s response: Prioritising local businesses

When reached for comment by The Citizen, the ANC claimed they were not against audits and also believed in prioritising local businesses.

“ANC supports the investigation of foreign shops and supports local economic empowerment. I don’t know about ANC voting against this,” said ANC Provincial Spokesperson Mafika Sangweni on Tuesday.

Sangweni said the ANC supports incentives for businesses that prioritise local production and job creation. He said these incentives came in the form of tax breaks, subsidies, or easier access to credit for businesses that contribute to the local economy.

“The ANC emphasises enforcing regulations that prevent illegal or unregulated trading activities that may displace local businesses,” Sangweni added.

However, Mncwango expressed surprise at the ANC’s rejection of ActionSA’s proposal during the council meeting.

“The reason behind that was acknowledging that spaza shops are the cornerstone of economic upliftment for black people in townships,” explained Mncwango.

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Concerns over spaza shops ownership and safety

Mncwango addressed concerns about local South Africans who have opened spaza shops and faced violence.

He stated that ActionSA planned to create a dedicated team to assist with business skills and petition local municipalities to enforce existing laws and bylaws.

When asked about balancing the need to protect local jobs with the potential economic benefits of foreign investment, Mncwango clarified, “We must separate the two. Foreign investment is not a problem because when someone comes and invests in the country, they invest locally. We’ve got no problem with foreigners in the country who are running businesses legally.”

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ActionSA’s future plans

Mncwango outlined ActionSA’s intentions to address the concerns of local spaza shop owners and protect the informal economy space nationally. He said the party aimed to:

1. Enforce existing laws and strengthen municipal powers where necessary
2. Simplify the process for locals to start businesses
3. Provide support and education to local business owners
4. Encourage healthy competition while ensuring all players follow the rules

According to Mncwango, ActionSA already initiated a mentorship program, using their own funds to purchase stock for a woman’s business in Kwamashu.

He said they had done this as a test model.

Mncwango explained that this pilot project aimed to develop a sustainable model for supporting local businesses, which could be implemented on a larger scale if ActionSA gained governmental influence in the future.

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