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