somalinomics somali migrant trade practices and their impact on local economies in the western cape...
TRANSCRIPT
Somalinomics
Somali migrant trade practices and their impact on local economies in the
Western Cape
Vanya Gastrow African Centre for Migration & SocietyWits University
Topic
To understand the impact of Somali migrant trade on South African local economies:– Need to understand the diversity and
complexity of Somali trade practices.– Assessments of foreign migrant trade
need to be placed in broader context.
Somali spaza trade practices
Types of spaza shops
Trade practices: General
• Low mark-up, high turnover; • Location - high pedestrian traffic
areas; • Rent shops; • Sleep in or behind shops; • Open early, close late; • Customer-focused practices
• Collective investment
• Shareholding in multiple shops
• Sole ownership
• Share donation
• Employees and employers
Ownership
Procurement
• By individually from wholesalers;• Share transport; • Price comparisons and special offers;• Negotiating with managers.
Somali trade in CBD areas
Trade in CBD areas
Diverse types of shops and businesses
Hire South African staff
Many female Somali traders
Somali spaza shops and local economies
• Foreign traders• Supermarkets• Food prices• Business skills• Personal and management factors
South African spazas: possible challenges
Other parties affected by Somali spaza shops:
• Landlords• Small scale suppliers and manufacturers• Wholesalers• Employees• Consumers• South African job seekers and state
social services• SARS: see Abdu Sh Mohamed Hikam
study of Motherwell
Conclusion
• Focus on the complexities to avoid myths and stereotyping. For example:– Collective and individualist, – Small, medium and large
• Understanding in greater detail how shops work, as well as looking at broader parties affected gives a more comprehensive picture of the impact of Somali trade on local economies and opportunities for South African entrepreneurialism and economic growth.
Thank you!
Vanya Gastrow African Centre for Migration & SocietyWits University