Residents in parts of Durban say spaza shop prices have increased sharply after South Africans took over several shops previously run by foreign nationals.
According to an IOL report published on 8 July 2026, residents in Chesterville and KwaMashu said they now pay more for bread, tea bags and other basic items. The increases have caused concern in communities where many households rely on nearby spaza shops for daily essentials.
One Chesterville resident, identified by IOL as Zandile, said a loaf of bread that previously cost R20 now costs R30. She said residents had little choice but to pay the higher price because nearby alternatives were limited.
Bulk Buying Gap Drives Higher Costs
The reported rise in spaza shop prices comes amid wider debate over ownership, compliance and pricing in township retail.
Foreign-owned spaza shops have often used bulk buying networks to lower costs and sell at smaller margins, according to the IOL report. By contrast, many locally owned shops buy stock individually, which can increase operating costs and push up shelf prices.
In KwaMashu, resident Londy told IOL that some shops also changed their trading hours after the takeover. She said foreign-owned shops previously opened early and closed late, while some new operators now open later and close by 5pm.
The changes have affected families who relied on early-morning purchases before school or work. As a result, residents now face both higher prices and reduced convenience.
Government Fund Aims to Support Local Shops
Government launched the R500 million Spaza Shop Support Fund in 2025 to help South African-owned spaza shops in townships and rural areas. The fund offers financial and non-financial support through the Department of Small Business Development and the Department of Trade, Industry and Competition.
In a 29 May 2026 update, government said R179.6 million had been approved from the fund, with 2,369 spaza shops approved for support. Officials said many applicants still struggled with trading licences, verification and other compliance requirements.
Government has since increased outreach efforts to help more shop owners formalise their businesses and qualify for support. SAnews reported in June 2026 that the campaign aims to help spaza shop owners meet compliance rules and access the remaining funds.
Residents Weigh Costs and Control
The price increases show the difficult balance between local ownership and affordable food access in township economies.
While some residents welcomed South Africans taking over spaza shops, the higher spaza shop prices have created frustration. For many low-income households, even small increases in bread, tea and other basic items can place extra pressure on monthly budgets.