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Somalinomics. Somali migrant trade practices and their impact on local economies in the Western Cape. Vanya Gastrow African Centre for Migration & Society Wits University. Topic. To understand the impact of Somali migrant trade on South African local economies:
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Somalinomics Somali migrant trade practices and their impact on local economies in the Western Cape Vanya Gastrow African Centre for Migration & Society Wits University
Topic To understand the impact of Somali migrant trade on South African local economies: • Need to understand the diversity and complexity of Somali trade practices. • Assessments of foreign migrant trade need to be placed in broader context.
Trade practices: General • Low mark-up, high turnover; • Location - high pedestrian traffic areas; • Rent shops; • Sleep in or behind shops; • Open early, close late; • Customer-focused practices
Ownership • Collective investment • Shareholding in multiple shops • Sole ownership • Share donation • Employees and employers
Procurement • By individually from wholesalers; • Share transport; • Price comparisons and special offers; • Negotiating with managers.
Trade in CBD areas Diverse types of shops and businesses Hire South African staff Many female Somali traders
South African spazas: possible challenges • Foreign traders • Supermarkets • Food prices • Business skills • Personal and management factors
Other parties affected by Somali spaza shops: • Landlords • Small scale suppliers and manufacturers • Wholesalers • Employees • Consumers • South African job seekers and state social services • SARS: see Abdu Sh Mohamed Hikam study of Motherwell
Conclusion • Focus on the complexities to avoid myths and stereotyping. For example: • Collective and individualist, • Small, medium and large • Understanding in greater detail how shops work, as well as looking at broader parties affected gives a more comprehensive picture of the impact of Somali trade on local economies and opportunities for South African entrepreneurialismand economic growth.
Thank you! Vanya Gastrow African Centre for Migration & Society Wits University