Spazas’ fronting exposed in food safety probe

South Africans are colluding with foreigners in running spaza shops and street-vendor outlets in Gauteng, some of which have been linked to contaminated food sales, according to the public protector.

Speaking after the release of the report on Friday, public protector Kholeka Gcaleka said the systemic shortcomings identified in Gauteng’s food safety sector are not unique to the province and largely mirror challenges experienced across South Africa.

The report follows an investigation into allegations of inadequate enforcement by various state organs regulating food safety and hygiene standards within the informal business sector, including spaza shops, hawkers and other food preparation premises.

Gcaleka cites the absence of, or ineffective, monitoring mechanisms for health services through mandatory structures such as district and provincial health councils, as required by the National Health Act, as well as severe staff shortages within municipal health departments.

She says the deaths of at least 23 children from suspected food poisoning since 2024 could have been avoided.

The investigation was prompted by the leader of the African Transformation Movement (ATM), Vuyolwethu Zungula, in October 2024 following the spate of deaths.

More or less to a large extent, the problems are almost the same. Of course, maybe statistically the figures won’t be exactly the same, but it’s almost the standard underlying systemic challenges throughout the country

—  Vusumuzi Dlamini, public protector’s Gauteng head

Gcaleka says the department of small business development, through its small enterprise development & finance agency, had identified instances of business fronting, beneficiary mismatches, fraud and misrepresentation where the details of licence holders differed from those of the operators of spaza shops. This constituted a direct attempt to bypass the requirement that shops be owned and operated by South African citizens.

She says evidence showed that though a South African citizen was the registered owner of Dana Tuckshop in Naledi, under whose name the certificate of acceptability was issued, the shop was operated by a foreign national, according to information provided to the investigation team by the local community.

Vusumuzi Dlamini, the public protector’s provincial head for Gauteng, said the province’s shortcomings were not isolated but formed part of a wider national pattern.

“More or less to a large extent, the problems are almost the same. Of course, maybe statistically the figures won’t be exactly the same, but it’s almost the standard underlying systemic challenges throughout the country,” he said.

Dlamini said work on food safety extends beyond Gauteng, saying the public protector would be reporting on the issue in every province.

Gcaleka notes in the report that no positive chemical tests were recorded in the case of children in Naledi who showed signs of food poisoning before their deaths in October 2024. However, she says that while environmental health practitioners (EHPs) visited Dana Tuckshop a day later, most of the food had already been removed.

“It is therefore doubtful to conclude that the EHPs got the correct food samples, and the absence of positive chemical testing should absolve the operators of the shop concerned.”

Dlamini said that during the verification process for spaza shop support fund applications, more than 1,500 sites were inspected. Of the 1,556 sites visited, 121 were disqualified. These included:

• 16 cases of attempted business fronting through beneficiary mismatches;
• 92 instances where no spaza shop existed at the address provided; and
• 13 cases in which inspectors were denied access.

The report says the demographics within the three Gauteng metros indicate that a significantly higher number of business applications to operate spaza shops are received from foreign nationals compared to South African locals.

There are approximately 12,737 operational spaza shops across the three Gauteng metros. About 7,071 — or 56% — are operated by foreign nationalsThere are approximately 12,737 operational spaza shops across the three Gauteng metros. About 7,071, or 56%, are operated by foreign nationals

—  Report

“There are approximately 12,737 operational spaza shops across the three Gauteng metros. About 7,071 — or 56% — are operated by foreign nationals. This reinforces findings that the sector is increasingly dominated by foreign nationals, particularly Ethiopians, Somalis and Bangladeshis, according to a master list verified by the department of home affairs and provided to the investigation team by the City of Tshwane.”

Gcaleka also compares the legal framework regulating informal business within some African countries, including Ghana, Nigeria and Zimbabwe, stating that all their legislation appears to be intentionally geared towards ensuring that local citizens have a significant stake in the informal business sector operating within the country to reduce foreign control over the informal business economy and thus promote local entrepreneurship.

Deputy public protector Dinkie Dube said this provides some basis for a model the South African government could consider and is important, taking into account the current ownership patterns.

“So if we were to look at a possibility of following these models where you reserve certain sectors for locals, you may then perhaps start to change the picture,” Dube said.

Gcaleka recommends that the Gauteng premier establish a technical committee comprising representatives from the departments of co-operative governance & traditional affairs, health and economic development, the National Treasury, the South African Local Government Association, municipalities and other stakeholders.

The committee would assess capacity, governance and budgetary challenges affecting municipal health services and local economic development departments and identify legislative, policy and operational interventions needed to strengthen food-safety regulation and enforcement.