Next Door Spaza Shop Management Company empowers local businesses
The partnership will ensure that manufacturers particularly producers will gain access to strategically located community based- stores.
Proudly South African (PSA) participated in an opportunity to drive local production in the R190b spaza economy through a partnership with the Next Door Spaza Shop Management Company (NDSSMC) at Bafikile Trading Store in Zondi, Soweto, on October 14.
The model aims to tackle high stock costs, limited access to finance and disconnected supply chains while opening new routes to market for South African manufacturers.
The initiative will leverage aggregated procurement and real-time analytics to increase buying power and expand shelf space for locally made products across 1 000 Next Door-branded spaza shops set to be rolled out in Gauteng during the first year.
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Eustace Mashimbye, chief executive of PSA, said spaza shops and similar township retail stores are more than neighbourhood convenience stores.
“They represent a significant opportunity to stimulate local production, create jobs and grow South African businesses,” said Mashimbye. “By aggregating demand across thousands of community-based retailers, we can create sustainable market opportunities for local producers, support the growth of small businesses and drive inclusive economic development.”
The NDSSMC model is designed to create opportunities across the retail value chain while strengthening the position of locally owned shops. Where feasible, stores will source products such as bread, mealie meal and other essential goods from local manufacturers.
The initiative introduces standardised operating systems across affiliated retailers, helping to address procurement and distribution inefficiencies that have contributed to the decline of many locally owned spaza shops.
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“Our vision is to build a retail ecosystem that connects local producers directly with township and rural consumers,” said Labane Maluleke, managing director of Next Door.
“By expanding access to quality South African-made products, we are strengthening local manufacturing, creating commercial opportunities for producers and helping to build more resilient and sustainable local economies.”
Maluleke said the NDSSMC is engaging several public-sector partners, including the Department of Trade, Industry and Competition and the Department of Small Business Development (DSBD), to explore how they could partner with the Spaza Shop Support Fund for better outcomes in the programme.
The fund provides qualifying spaza shop owners with financing support for stock, equipment upgrades and business development interventions.
Maluleke said they are creating opportunities for South Africans to own and operate successful local shops while generating employment opportunities in townships and rural communities.
