“State Capitalism: How the Government is Undermining Spaza Shops to Boost Big Retail (that they own)”
“State Capitalism: How the Government is Undermining Spaza Shops to Boost Big Retail (that they own)” Out of the 23 children who tragically lost their lives due to food poisoning from spaza shops in South Africa, 7 deaths were confirmed to be caused by organophosphate, a toxic chemical often found in rodenticides. This means that 16 cases are not confirmed to be rodenticide-induced. The authorities are still investigating the exact causes of these other cases.
Economic Protectionism
The other cases of food poisoning from spaza shops in South Africa have been attributed to various causes, including:
- Contaminated Snacks: Some incidents involved children consuming snacks that were contaminated with harmful substances. For example, there were reports of pills found in packets of chips, which led to severe stomach cramps and hospitalizations. NO DEATHS.
- Poor Hygiene and Storage Practices: Many spaza shops have been found to have poor hygiene and storage practices, leading to the contamination of food products. This includes using toxic chemicals like organophosphates (e.g., terbufos and aldicarb) to control rats in food storage areas. 7 DEATHS.
- Expired and Unsafe Food Products: There have been instances where children consumed expired or unsafe food products from spaza shops, leading to food poisoning. NO DEATHS.
- Lack of Proper Regulation: The lack of proper regulation and oversight of spaza shops has contributed to the food safety crisis. Many shops operate without adhering to basic health standards, increasing the risk of foodborne illnesses. NO DEATHS.
Authorities are actively investigating these incidents and implementing stricter regulations to ensure food safety and prevent further tragedies.
It’s a heartbreaking situation, and the government is taking steps to address the food safety crisis by implementing stricter regulations and re-registering spaza shops to ensure compliance with health standards.
Pulling the Wool
South Africa is home to over 150,000 spaza shops2. These small, often informal grocery stores play a crucial role in local communities, providing essential goods and services, and serving as important sources of supplementary household income. The spaza shop sector represents a significant portion of the nation’s annual food expenditure, estimated at 30%-40%, and has a market value of around R178 billion.
Urbanisation leads to the SPAR
My take on all of this is BS. First, it started with dagga cookies being sold to some kids.
The incident involving dagga (cannabis) cookies sold to children from spaza shops occurred in early November 2024. A notable case involved a 12-year-old boy who was rushed to a clinic after consuming a ginger biscuit containing a pill. Not a dagga pill. Fortunately, there were no reported deaths from these incidents, but they did raise significant concerns about food safety and the regulation of spaza shops.
Authorities have since taken steps to address these issues, including stricter regulations and increased inspections to ensure the safety of food sold in these informal shops
Who owns the SPAR?
SPAR International operates as a franchise, meaning that individual SPAR stores are owned and operated by independent retailers. However, the largest shareholder of SPAR Group Ltd, which is listed on the Johannesburg Stock Exchange, is the Public Investment Corporation (SOC) Ltd., holding approximately 24.96% of the shares2. Other significant shareholders include Coronation Asset Management (Pty) Ltd. and Mandg Investment Managers Pty Ltd., each holding around 10%.
Public Investment Corporation (SOC) Ltd.48,083,16024.96 %344 M R
Coronation Asset Management (Pty) Ltd.19,587,65910.17 %140 M R
Mandg Investment Managers Pty Ltd.19,279,49510.01 %138 M R
M&G Investment Managers (Pty) Ltd.10,145,3365.268 %73 M R
Ninety One SA (Pty) Ltd.9,630,1175.000 %69 M R
Old Mutual Investment Group (Pty) Ltd.2,139,5821.111 %15 M R
Camissa Asset Management Pty Ltd.648,7610.3368 %5 M R
Sanlam Investment Management (Pty) Ltd.611,3450.3174 %4 M R
Satrix Managers (RF) Pty Ltd.394,3830.2048 %3 M R
Perpetua Investment Managers (Pty) Ltd.203,0420.1054 %1 M
Government?
The Public Investment Corporation (SOC) Ltd (PIC) is a state-owned entity, wholly owned by the government of the Republic of South Africa. The Minister of Finance represents the PIC and is responsible for managing the assets of various public sector funds, including the Government Employees Pension Fund (GEPF), Unemployment Insurance Fund (UIF), and Compensation Commissioner Fund (CC).
Would it be in the SPAR Group’s interest to vilify and then set targets on the Spaza Shop sector for its own gain?
It’s a complex situation. The SPAR Group, like other large retailers, operates in a highly competitive market. The informal spaza shop sector represents a significant portion of South Africa’s retail economy, valued at around R184 billion. Large retailers, including SPAR, might see opportunities to expand their market share by moving into this space, especially given the public trust in their brands and products.
However, vilifying spaza shops for their own gain would be a risky and unethical strategy. It could lead to backlash from consumers and communities who rely on these shops for affordable goods and services. Moreover, spaza shops play a crucial role in local economies, providing employment and supporting livelihoods.
The focus should ideally be on improving food safety and regulatory standards across all retail sectors, ensuring that both formal and informal traders can operate safely and fairly. This approach would benefit consumers and help maintain a healthy competitive environment.
What is it called when the governemnt, in it’s own interests since it owns the biggest supermarket, takes on the little guys to cloise them down, using nefarious means, so gain more merket share?
“State Capitalism” or “Economic Protectionism”…
When a government, in its own interests, uses its power to undermine smaller competitors to gain more market share, it can be referred to as economic protectionism or state capitalism. This involves the government favouring state-owned enterprises or large corporations over smaller businesses, often through unfair practices or regulations. If these actions are specifically aimed at eliminating competition and creating a monopoly, it can also be termed monopolistic practices or anti-competitive behaviour.
Such actions can lead to a lack of competition, which can harm consumers by reducing choices and driving up prices. It’s important for regulatory bodies to ensure a fair and competitive market to prevent such abuses of power.
Is there any hard evidence to prove that snacks in packets, out-of-date or not, have killed any of the 23 children?
There is no hard evidence to prove that snacks in packets, whether out-of-date or not, have directly caused the deaths of any of the 23 children. The confirmed cause of death for 7 of the children was organophosphate poisoning, a toxic chemical often found in rodenticides. The remaining cases are still under investigation, but there have been no confirmed deaths directly linked to contaminated or expired snacks in packets.
Authorities are continuing to investigate the exact causes of these tragic incidents and are implementing stricter regulations to ensure food safety in spaza shops
How many new SPAR shops have opened in the Transkei over the last ten years?
Over the past decade, SPAR has been actively expanding its presence in South Africa, including the Transkei region. While specific numbers for the Transkei alone are not readily available, SPAR has opened numerous new stores across the country. For instance, in 2015, SPAR planned to open 35 new stores and renovate 180 existing ones. The expansion efforts have continued over the years, with SPAR consistently opening new stores to meet the growing demand2.
For more detailed and specific information about the number of new SPAR shops in the Transkei, it would be best to contact SPAR South Africa directly or visit their official website.
The Government End Game
The end-game for the government is to control their constituents. To make sure they get the vote. And stay in power.
It is nigh impossible to hire any workforce in the Transkei. Because of you pay them into their bank account, they get penalised by the government for working. It compromises that individual’s SASSA payout at month end if he makes any other money.
So nobody grows anything anymore. Nobody works. There is literally zero agriculture happening in the once-agricultural Transkei. The people ALL wait for SASSA. Take a taxi, hit the SPAR.
And the treadmill is working just fine for the ANC.
Thanks
Shoutout to The Bear. Check his website at https://masterwatermen.co.za.
Alan of NPS Fishing…
Prof Tony Turton…
Cliff Bamber…
Mannie Joreiro…
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