WeeklySA_AdminMARKET: An initiative launched in Soweto aims to strengthen township retailers’ buying power and create shelf space for South African-made goods through a planned network of 1 000 stores in Gauteng…
By Jacob Mawela
A new partnership between Next Door Spaza Shop Management Company and Proudly South African aims to revitalise township retail by helping shop owners buy collectively, improve their operations and stock more locally manufactured goods.
Launched at Bafikile Trading Store in Zondi, Soweto, on Wednesday, October 14, the initiative targets the establishment of 1 000 Next Door-branded spaza shops across Gauteng in its first year, with expansion into all nine provinces envisaged in the years ahead.
The partnership seeks to connect South African manufacturers with township and rural consumers through a network of community-based shops. By pooling orders across participating stores, Next Door aims to strengthen retailers’ buying power, improve distribution and create more reliable routes to market for local producers.
For manufacturers, particularly those producing Proudly South African products, the network promises greater visibility and access to shelf space in communities they may otherwise struggle to reach.
For shop owners, the model offers coordinated procurement and standardised operating systems intended to address supply and distribution inefficiencies that can undermine the viability of small retailers.
Where feasible, participating shops will source bread, mielie meal and other essentials from local manufacturers. Producers and farmers will also be brought into the supplier network to help retailers obtain stock more efficiently.
Technology forms a central part of the model. A shared digital platform will track sales, orders and stock levels in real time, allowing Next Door to monitor store performance and identify problems requiring support.
The intention is to help owners make better-informed decisions, manage their stock and improve profitability.
Proudly South African chief executive Eustace Mashimbye said spaza shops offered an opportunity to stimulate local production, support small businesses and create jobs.
“Spaza shops and similar township retail stores are more than neighbourhood convenience stores,” he said.
“They represent a significant opportunity to stimulate local production, create jobs and grow South African businesses. 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.”
Mashimbye said the partnership would advance Proudly South African’s efforts to expand market access for local manufacturers and increase domestic production capacity.
“This partnership with Next Door gives expression to our quest to tap into the township economy, create market access opportunities for local manufacturers, expand local production capacity and make localisation a reality on a much larger scale,” he said.
Next Door managing director Labane Maluleke said the planned rollout would increase the availability of South African-made products while opening commercial opportunities for producers.
“Our vision is to build a retail ecosystem that connects local producers directly with township and rural consumers.
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 company was engaging public-sector stakeholders, including the Department of Trade, Industry and Competition and the Department of Small Business Development, to explore possible collaboration with the Spaza Shop Support Fund.
The fund provides qualifying shop owners with support for stock, equipment upgrades and business development. Any partnership with Next Door remains under discussion.
“We are creating opportunities for more South Africans to own and operate successful local shops while generating employment opportunities in townships and rural communities,” Maluleke said.
The broader ambition, he added, was to revitalise local retail and enable township communities to participate more fully in the businesses and supply chains serving them.
