Proudly South African has partnered with Next Door Spaza Shop Management Company to expand access to township and rural retail markets for local manufacturers through a planned network of 1,000 branded spaza shops in Gauteng during its first year.
The partnership aims to increase the availability of locally made products by combining procurement across stores, improving distribution and using sales data to help retailers manage stock and performance.
The initiative targets South Africa’s spaza economy, which Proudly South African estimates at R190bn, and is intended to create new sales opportunities for local producers, including manufacturers of Proudly South African-endorsed products.
Aggregating demand for local products
Under the model, participating shops will be connected through a supplier network that brings together local manufacturers and farmers. Where feasible, stores will source essential goods such as bread and maize meal from local producers.
Aggregating demand across the network is intended to strengthen retailers’ buying power while helping manufacturers reach customers in township and rural communities.
Next Door will also introduce standardised operating systems across affiliated stores to address procurement and distribution inefficiencies that have contributed to the decline of some locally owned spaza shops.
A centralised digital platform will track sales, orders and inventory levels in real time. The system is designed to flag anomalies and identify stores that may need support, helping owners manage stock and improve business performance.
Proudly South African chief executive Eustace Mashimbye said the partnership could help turn township retail demand into opportunities for domestic production and job creation.
“By aggregating demand across thousands of community-based retailers, we can create sustainable market opportunities for local producers, support the growth of small businesses and drive inclusive economic development,” he said.
Plans to expand beyond Gauteng
Next Door aims to establish 1,000 stores in its first year, with plans to expand into all nine provinces in subsequent years.
The company is also engaging public-sector partners, including the Department of Trade, Industry and Competition and the Department of Small Business Development, on potential links with the Spaza Shop Support Fund.
The fund provides qualifying spaza shop owners with financial support for stock, equipment upgrades and business development.
Next Door managing director Labane Maluleke said the network was intended to connect local producers with township and rural consumers while creating opportunities for shop ownership and employment.
The planned rollout will depend on establishing the store network and supplier relationships needed to make locally manufactured goods more widely available through participating retailers.
