Transcript 2.-Gastrow-Somalinomics-powerpoint-final-1

Somalinomics
Somali migrant trade practices
and their impact on local
economies in the Western Cape
Vanya Gastrow
African Centre for Migration & Society
Wits 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
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Low mark-up, high turnover;
Location - high pedestrian traffic areas;
Rent shops;
Sleep in or behind shops;
Open early, close late;
Customer-focused practices
Ownership
• Collective investment
• Shareholding in multiple shops
• Sole ownership
• Share donation
• Employees and employers
Procurement
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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
South African spazas: possible
challenges
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Foreign traders
Supermarkets
Food prices
Business skills
Personal and management factors
Other parties affected by Somali
spaza shops:
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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 & Society
Wits University