Spaza Shops Collapse Under Festive-Season Extortion Surge

Spaza Shops Collapse Under Festive-Season Extortion Surge

Khayelitsha, Cape Town - Dozens of spaza shops and small township businesses in Khayelitsha, Harare, Mfuleni and surrounding areas have shut their doors permanently in the past three weeks as extortion gangs dramatically hike their “protection” fees ahead of the Christmas trading season.

Traders describe a well-organised racket in which multiple gangs, some linked to local street committees, others to numbered prison gangs, demand monthly payments throughout the year. With December here, these groups have now imposed one-off “Christmas bonuses” ranging from R2,000 to R10,000 per shop, on top of the regular R1,000–R3,000 monthly fees.

“I am paying four different groups every month,” said a Site C spaza owner who asked to remain anonymous for fear of reprisals. “One takes R1,000, another R1,500, the third R2,000 and the fourth R3,000 from the fourth. Now all four want a ‘festive bonus’ before the 15th of December. I told them I don’t have it. They said they will burn the shop. I decided to close.”

Community leaders in Khayelitsha say at least 60 spaza shops have closed in the past month alone, with informal counts from local business forums suggesting the real figure could be closer to 150 across the greater Khayelitsha area. Many owners have simply locked their containers or brick stores and returned to their rural homes in the Eastern Cape rather than risk arson or assassination.

The extortion surge coincides with the busiest trading period for township retailers, when spaza shops normally stock extra groceries, toys, alcohol and clothing to serve Christmas shoppers. Instead, shelves are emptying and metal shutters are staying down.

“These are family businesses that have been here for 15–20 years,” said Ndithini Tyhido, chairperson of the Khayelitsha Development Forum. “When they close, the whole community suffers, schoolchildren can’t buy bread or airtime, pensioners lose their nearest shop, and hundreds of young cashiers and packers are out of work just before Christmas.”

Western Cape police confirmed they have opened multiple cases of extortion dockets in the area but say victims are reluctant to make formal statements because the gangs operate in the same streets where the shopkeepers live.

“Extortion has become the number-one driver of small-business closures in Cape Town’s townships this year,” said Jean-Pierre Smith, Mayoral Committee Member for Safety and Security. “We have increased visible policing and made several arrests, but the intimidation is so severe that many owners prefer to abandon their businesses rather than testify.”

Some traders who initially resisted the festive demands report receiving written threats pushed under their doors or WhatsApp messages showing photographs of their children leaving school. Petrol bombings of non-compliant shops have been recorded in Site B and Mfuleni in recent weeks.

The Western Cape Department of Economic Development has appealed to national government to classify township extortion as an economic sabotage priority crime and to deploy specialised task teams similar to those used against construction mafia syndicates.

Until that happens, more metal roller doors in Khayelitsha are expected to stay locked this December, leaving empty streets where bustling spaza shops once stood.