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Business fiasco in Soweto

SMALL businesses in Soweto have been hit hard by the recent mushrooming of malls and big supermarkets.

While the older generation view these two as a threat to their businesses, the young ones have been able to spot the gaps left by big retailers.

Margaret Viljoen, 38, has lived on the corner of Butshingi and Mohalefele streets, in Dube, all her life, the only intersection that had traffic lights in Soweto in 1976. This used to be one of the busiest business districts of Soweto.

The area was famous because some of Richard Maponya's oldest businesses were based there.

"Things have changed here," Viljoen smiled.

Today the area has a filling station, florist, Shoprite supermarket, Absa bank, FNB ATM, a pharmacy, an optometrist, a Butterfield bakery, a taxi rank and a housing development less than 50m away from the intersection. To top it all the Rea Vaya bus route cuts through the area.

Said Viljoen: "There used to be fights between Dube hostel dwellers and residents - and this intersection was the battleground.

"Also when Bafana Bafana won the Africa Cup of Nations in 1996, people came with their cars to spin them in celebration at this intersection.

"During the (2010 Soccer) World Cup I opened a fast food outlet outside my house. It did well but I could not sustain it after the tournament."

Across from Viljoen's home Solomon Mokgashe, runs an electronics repair shop. He has been operating thefor the past 18 years.

"In the past business flourished and everything was fine.

"Today there is no business. People are just walking around. People come with faulty television sets, I fix them but they cannot pay for the repairs," he said.

Mokgashe, 59, said in the early days Score supermarket was one of the main attractions in the area, but when it closed down a number of businesses followed suit.

He said after the arrival of Shoprite in 2003 or thereabout, business started to boom, but those businesses that dealt in food and groceries did not benefit and "are now about to shut down".

Bongi Khumalo, 72, has seen it all in the retail industry in Soweto. She has been running a small shopping centre, Mndeni Bazaar, for the past 40 years.

She told Sowetan how her business (which was started by her late husband) did well in the 1960s and 80s.

During the political instability of the late 1980s and early 1990s her business took a knock but things started improving in 1998.

"Mine was the biggest shop in the area, so everyone bought their groceries from me."

Mndeni Bazaar consists of a general dealer, butchery and a beverages outlet.

But things started getting bad in the new millennium. Shoprite supermarkets in Zola, Naledi and Jabulani Mall robbed her of customers.

"It was painful seeing my customers pass by my shop with groceries from Shoprite, people who used to buy everything from me," Khumalo said

She said the situation had been made worse by the arrival of foreign nationals, who also opened retail shops in the area and took away even more customers.

"We were killed by Shoprite. The malls have just taken us to Avalon Cemetery," she said.

On the other hand, Mncedisi Mashumi opened a chicken wholesaler in another famous business, Khazamula in Mofolo South.

Mashumi, 24, started out in 2009 and his business is growing.

"During the World Cup business was good. We supplied chickens to restaurants, retailers and chicken dust outlets across Soweto."

Mashumi said though things were not as they were during the World Cup, he was still able to supply chickens to clients in places as far as Germiston in Ekurhuleni and Krugersdorp, in the west.

"You have to find the gap in the market and not sell what that is available at the malls or at Shoprite.

"Once you've spotted the gap stick to it and don't try to compete with the big supermarkets," he said.

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