Spaza shops not allowed to handle bank notes

Gurus in the South African banking industry have set a huge mountain to climb for informal traders… writes Godfrey Sigwela. They want the spaza shops and hawkers to stop using cash in their businesses.

Financial experts attribute their idea to the fast developing digital world, in which new digital ways of banking can be used by informal traders.

However, this idea has become a controversial issue because the South African Reserve Bank continues branding bank notes, and just this week launched revitalised notes.

After their facelift, SA bank notes look beautiful with an upgraded Madiba image and other security features.

But who is going to use the new bank notes, if informal traders can not use cash?

One concerned spaza shop owner says she does not believe that they can successfully sell without exchanging money.

She said: “How can that happen… to sell without getting money from the customer?

“Out of the few cents we are making, these people want to take our business. How can I sell my fruit and vegetables without money? This is a folk tale in daylight, or there is something else hidden we do not know.”

Another concerned man said: “If the Reserve Bank continue to produce the bank notes, maybe the bank notes would be used by the rich people. While the poor on the ground will continue using coins. So that the gap between the rich and poor stay wide.”

One spaza shop owner remembered how the promises they were given during the 2010 Soccer World Cup.

She said: “It is not the first time wealthy business people manipulate us. During 2010 Soccer World Cup we were told of a new business concept to be known as the “township economy”.

“We were told that as a value chain of the World Cup we will benefit in order that our businesses can be boosted in this township economy. Since then, we are still struggling and some collapsed without any form of support.”

By Godfrey Sigwela