Motlanthe: Informal trading not same as entrepreneurship
Former President Kgalema Motlanthe has cautioned against labelling informal trading, such as spaza shops, as entrepreneurship.
Motlanthe said his belief stems from the fact that they do not provide sustainable employment.
Speaking at the University of Johannesburg, Motlanthe stressed that economic policies promoting self-employment overlook the need for industrialisation, infrastructure, and stable job structures.
He emphasised that actual economic growth requires long-term employment opportunities and strong support systems.
“Research and lived experience of many revealed that what is often called entrepreneurship in the form of spaza shops is, in reality, informal, insecure labour, a survival mechanism rather than a driver of sustainable growth.”
Earlier in March, Minister of Small Business Development Stella Ndabeni announced that the government would allocate R500 million to assist South African spaza shops that have registered but are struggling with compliance due to financial difficulties.
In December, President Cyril Ramaphosa mandated that all spaza shops and food-handling outlets must register after several food poisoning incidents and deaths were linked to unregulated businesses.
