Proudly SA and Next Door Target 1,000 Spaza Shops to Expand Local Manufacturing

Proudly SA and Next Door Target 1,000 Spaza Shops to Expand Local MManufacturing. Proudly South African has partnered with Next Door Spaza Shop Management Company on a plan to establish a network of 1,000 branded spaza shops in Gauteng during its first year, creating additional retail channels for locally manufactured products.

The initiative is aimed at expanding access to township and rural markets for local manufacturers by combining procurement across participating stores, improving distribution and using sales data to support stock and business management.

Proudly South African estimates South Africa’s spaza economy at R190 billion. The partnership is intended to create sales opportunities for local producers, including manufacturers of Proudly South African-endorsed products.

Under the planned model, participating shops will be connected to a supplier network bringing together local manufacturers and farmers. Where feasible, stores will source essential products such as bread and maize meal from local producers.

The aggregation of demand across the network is intended to improve retailers’ buying power while providing manufacturers with access to customers in township and rural communities.

Next Door will also introduce standardised operating systems across affiliated stores. These systems are intended 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. According to the companies, the system will flag anomalies and identify stores that may require support, helping owners manage stock and monitor business performance.

Proudly South African chief executive Eustace Mashimbye said aggregating demand across community-based retailers could create market opportunities for local producers while supporting small businesses.

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 company plans to expand beyond Gauteng into all nine provinces in subsequent years. Next Door is also engaging the Department of Trade, Industry and Competition and the Department of Small Business Development on potential links with the Spaza Shop Support Fund.