Monopoly of township economy by foreign enterprises must be addressed - Maile

JOHANNESBURG - Gauteng MEC for Finance Lebogang Maile says the monopolisation of the township economy by foreign enterprises through spaza shops needs to be urgently addressed.

On Sunday, Maile briefed the media following a worrying rise in poisoning cases suspected to be linked to products sold by these businesses.

Just last week, six children died after consuming snacks allegedly contaminated with some form of poison, while a dozen others have been hospitalised in separate incidents.

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Maile said that his department would take the necessary action amid growing concerns over the risks posed by foreign-owned spaza shops.

“A key concern that has been raised about the township economy is that components of it are increasingly being monopolised by foreign nationals. This is occurring in a context where the South African economy has excluded millions of people, particularly those in townships and other historically disadvantaged areas, at the margins of economic activity.”

The Gauteng government said it could not simply shut down foreign-owned spaza shops in response to public outcry over food poisoning incidents.

Maile also spoke about the financial challenges linked to these enterprises.

While acknowledging the rise in cases of alleged food poisoning, Maile stressed that closing all foreign-owned businesses wasn't a straightforward solution, as they are also protected by law.

“Shops that are not selling correct things [potentially poisonous foodstuffs] must be closed as a matter of principle, but we don’t wake up and say we close all foreign-owned spaza shops. By the way, that matter has become so complicated.”