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 Low mark-up, high turnover; Location - high pedestrian traffic areas; Rent shops; Sleep in or behind shops; Open early, close late; Customer-focused practices

Collective investment Shareholding in multiple shops Sole ownership Share donation Employees and employers Ownership

Procurement 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

Foreign traders Supermarkets Food prices Business skills Personal and management factors South African spazas: possible challenges

Other parties affected by Somali spaza shops: 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