A BUSINESS initiative spearheaded by Next Door Spaza Shop Management Company in association with Proudly South African geared towards the revitalization of township shop owners was launched at Bafikile Trading Store in Zondi Soweto on Wednesday.
Proudly South African has been given an incredible opportunity to actively and practically drive localisation in the R190 billion spaza economy, through a groundbreaking partnership with Next Door Spaza Shop Management Company.
The initiative will leverage aggregated procurement and real-time analytics to increase buying power, improve supply efficiency, 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.
The partnership is expected to create sustainable market-access opportunities for South African manufacturers, particularly producers of Proudly South African products. Through the Next Door township and rural retail network, local manufacturers will gain access to strategically located community-based stores, providing valuable shelf space and visibility in previously underserved markets.
The Next Door 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, mielie meal and other essential goods from local manufacturers, while producers and farmers will be integrated into the Next Door supplier network, enabling shop owners to source products more efficiently.
The initiative also 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.
A key differentiator of the model is its use of technology and data analytics.
Through a centralized digital platform, Next Door will monitor store performance in real time, tracking sales, orders and inventory levels.
The system will proactively identify anomalies and enable intervention where support is required, helping store owners manage their stores better to improve performance and profitability.
Eustace Mashimbye, Chief Executive Officer of Proudly South African, says the spaza market can be a powerful catalyst for localisation and the growth of local producers.
“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. 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 continued.
“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 further said.
Managing Director of Next Door, Labane Maluleke says the rollout of the network across Gauteng’s townships and rural communities will increase the visibility and availability of quality South African-made products while creating new opportunities for local 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 says Next Door 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 Next Door 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.
“We are creating opportunities for more South Africans to own and operate successful local shops while generating employment opportunities in townships and rural communities,” Malukeka continued.
“Next Door is about revitalising local retail, reopening opportunities, growing township economies and ensuring communities become active participants in the retail value chain rather than simply as consumers only,” he added.
The company aims to establish 1 000 Next Door stores in its first year of operation, with plans to expand the model across all nine provinces in the years ahead.
Image Jacob MAWELA (Proudly SA CEO Eustace Mashimbye, Lesaka Technologies’ Patience Rolls, Bafikile Trading Store proprietor Busisiwe Kekana, Next Door Managing Director Labane Maluleka and Nkeki Kekana, limned at the launch of Next Door project.)
