Saturday, September 02, 2006
Cape Argus
Many black South Africans running small businesses lack training, the ability to get access to finance and the financial discipline they need to run successful businesses, and are jealous of more competitive Somali-owned shops.
Mbulelo Ntshangase, chairman of the Gugulethu branch of the National Federation of Chamber of Commerce (Nafcoc) cited these factors as possible root causes for the murderous attacks on Somalis – 28 have been killed in the Western Cape so far this year.
He said that financial institutions and the government hold the key to enabling local business people to withstand the stiff competition from the Somalis who have extensive business experience from their home country.
Somalis across South Africa, who have been legally welcomed as asylum seekers, live in fear after the spate of killings.
A growing number of attacks have also been reported in Port Elizabeth, with two Somalis having been murdered in a robbery last week.
Somalis who fled Masiphumelele near Noordhoek say they now intend to leave the country.
The incidents have led the Western Cape government to investigate claims that local business people were instigating attacks on Somalis – a claim police denied last week as they were adamant that robbery was the motive in most attacks.
There have been several incidents in which nothing was reported stolen.
The Human Rights Commission and the Uniyed Nations High Commissioner for Refugees have also been asked to intervene.
Weekend Argus found this week that Somali shopkeepers, who run most supermarket-style shops in black residential areas in Cape Town, were operating collaboratively to buy in bulk and get discounts from wholesalers and factories.
In contrast, most black local business owners work as individuals and buy “in dribs and drabs” for their smaller spaza shops.
“In general customers prefer supermarkets than over-the-counter shops,” said a take-away owner, who stopped selling groceries after Somalis opened a supermarket next to her.
She said after the 1st Choice supermarket next to the Khayelitsha railway station opened, most of her customers abandoned her.
Ntshangase said while emerging local black businesses struggled to get funding from banks, Somalis generally had access to capital.
While he could not confirm or deny the claims that the local shopowners were involved in attacks against Somalis, Ntshangase said the government should provide on-going education programmes to help locals to be tolerant and improve their business skills.
A spot check suggested that prices at the Ist Choice Supermarket are relatively low and the store is doing well despite the opening of a Shoprite and Superspar in the nearby Khayelitsha Mall on the other side of the station.
Basic grocery items at this supermarket are cheaper than those at a nearby South African-run small shop.
A 2,5kg of bag of sugar costs R14.50 at the Somali shop compared to the R15 in the other store.
A 1kg packet of Tastic rice is R6,50 compared with R8 at the other store; 1kg of Iwisa maize meal is R1 less and a box of half dozen eggs is 30c cheaper.
Asked about the reduced prices, owner Mumin Hassan said he buys his stock in bulk and gets huge discounts. He stocks items such as flour and maize meal straight from the factories while other items are purchased from the wholesalers.
He said another strength was that most of them were “born business people”, having been raised in families that ran businesses.
Another local businessperson, who also asked not to be named, said most retail businesses were buying stock from the same wholesalers.
He said that “competition is healthy”.
“If people don’t buy from me I should ask myself what am I doing or not doing. These Somalis are supposed to be our mirrors where we could look at ourselves and improve where there is a need.
“But some people don’t want to be told their weaknesses.”
Looking at the Khayelitsha Mall, she said Shoprite and Superspar were a good example.
“When one store is having a sale people will run to it. And when the other one does the same thing later people will also run to it.”
She said everywhere prices were more or less the same, and it was always shocking to see very expensive or very low prices.
“Then something somewhere is wrong,” she said.
Pressed to elaborate, she said if someone charged cost price or below cost price, it raised questions as to whether they had used legal methods to get the stock.
Source: Cape Argus, Sept 2, 2006
