Motlanthe Has Doubts About The Viability Of Spaza Shops

Amid rising youth unemployment and calls for young people to consider entrepreneurship, former President Kgalema Motlanthe has expressed doubts about the viability of informal trading, such as spaza shops.

Speaking at the University of Johannesburg , where he was awarded an honorary doctorate, Motlanthe shared his perspective on the state of entrepreneurship and the township economy in South Africa.

Research and lived experience reveal that what is often called entrepreneurship in the form of spaza shops in South Africa, is in reality, informal, insecure labour, a survival mechanism rather than a driver of sustainable growth. Similar economic policies promoting self-employment also failed to acknowledge the necessity of industrialization, infrastructure, and stable employment structures.

Motlanthe also emphasised the importance of respecting and strengthening relations with other nations, particularly key trading partners like the United States and the European Union.

South Africa should always respect and nurture and strengthen relations with other nations. The most important of those are the ones who are trading with South Africa. The European Union is South Africas number one trade partner, and South Africa should really cement and strengthen the relations with the European Union. And of course, they mend the relations with the United States of America.