BUFFALO CITY, 7 September 2026 — South Africa’s Deputy Minister of Trade, Industry and Competition Zuko Godlimpi has advised young women running businesses in the country to form partnerships and cooperatives to increase their purchasing power and compete more effectively in the township economy.
Godlimpi was speaking at an empowerment workshop organised by the Methodist Church’s Young Women’s Manyano in Ku Gompo, Buffalo City, on Saturday.
Buffalo City Mayor Princess Faku attended the event, which focused on government support programmes for women in business.
The workshop also featured an exhibition of beadwork, pottery and textiles produced by local entrepreneurs.
Godlimpi said businesses could benefit from working together to purchase goods in bulk and secure better prices from wholesalers.
“It is these strategies of scale and usage of purchasing power that have enabled foreign nationals to dominate the Spaza Shop sector in the townships and villages,” he said.
“They have mastered the art of clubbing together, therefore township businesses need to work together in the same way to procure from wholesalers if they wish to compete with foreign-owned spaza stores.”
He encouraged the women to embrace technology, maintain an online presence and explore markets beyond South Africa.
Godlimpi also directed the participants towards existing government programmes designed to support small businesses, including initiatives providing business development, incubation and export support.
The call for greater collaboration comes amid concerns about the challenges facing businesses in rural and township economies.
The Competition Commission’s 2026 Rural and Township Economy Report identifies limited access to affordable stock, high operating costs and regulatory barriers among the challenges affecting independent township businesses.
According to the report, many households in rural towns and large townships live on less than R3,500 a month, while independent retailers often struggle to obtain stock at the prices available to national chains and larger wholesalers.
The report also highlights permits, zoning requirements and high rental costs as barriers to the formalisation and expansion of township businesses.
Godlimpi said cooperation could help small businesses overcome some of these challenges by allowing them to pool orders and negotiate better prices.
For women producing goods such as beadwork, pottery and textiles, forming cooperatives could also create opportunities to access larger markets, including formal retailers and online platforms.
The workshop brought together women entrepreneurs from communities including Mdantsane, Gompo and other parts of Buffalo City.
Godlimpi said the government support programmes available to small businesses should be used alongside stronger cooperation among entrepreneurs.
Mayor Faku’s attendance highlighted the role of local government in supporting small businesses, particularly in areas such as trading spaces, licensing and other municipal requirements.
The deputy minister urged the women to work collectively to strengthen their businesses and improve their ability to compete in the wider market.
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