By Selloane Ntshonyane
- A 60 year old Dobsonville baker says rising prices of ingredients and electricity forced him to increase scone prices from R10 to R22, frustrating customers.
- Small traders say high compliance costs, including a R1,200 fee, and strict rules are stopping many informal businesses from registering and growing.
Mandla Ngubani, a spaza shop owner from Dobsonville, says small businesses are struggling to survive as costs keep rising.
Ngubani, who is 60, has been running a small bakery since 2015. He shared his experience at a spaza shop and informal traders workshop held at Braamfischerville Multipurpose Centre on Thursday, 23 April.
He said the rising cost of ingredients and electricity has hit his business hard. This has forced him to increase prices, which some customers do not understand.
“Before, I used to sell four scones for R10, now it’s R22. People don’t always understand why prices go up,” he said.
Ngubani said he attended the workshop not just for himself but to help others in his community. He wants to share what he learned with people who could not attend.
“There is a lot of unemployment. I want to share the information with those who couldn’t come,” he said.
He said one useful tip was that traders can report wholesalers who sell expired products. He believes this will help protect his business and prevent losses.
But Ngubani also raised concerns about the cost of compliance. He said strict requirements and high fees make it difficult for small businesses to register.
He pointed to a R1,200 compliance fee as one of the barriers many traders face.
The workshop was led by the City of Johannesburg’s Economic Development Department. It forms part of preparations for the upcoming Spaza Shop and Informal Traders Expo Summit.
Benji Seitlhamo, Acting Director for Economic Development Facilitation, said challenges remain. He said traders raised issues such as illegal business structures, working in areas not set aside for trading and problems with documents.
Seitlhamo said the city is working with stakeholders, including the Department of Home Affairs, to address these challenges and improve support for informal traders.
Pictured above: A baker shared his experiences at the informal traders workshop held at Braamfischerville Multipurpose Centre on Thursday, 23 April.
Image source: Selloane Ntshonyane
