Back to Index

A (week-long) trip to the shops
Riekje Pelgrim, Mail & Guardian
April 13, 2006

Cross-border shoppers benefit Jo’burg, but they face many hurdles

Caroline* from Harare comes to Jo’burg twice a month to shop. She does not like the place, but needs to come here to support her family. "I buy things here, so I can sell them in Zimbabwe," says Caroline, who buys mostly industrial goods, such as rubber, for making couches. Her reasons for coming to Johannesburg are a wider variety and lower prices.

There are thousands of so-called cross-border shoppers like Caroline who come to Jo’burg every year. They buy fridges, televisions, computers, clothes, food, household goods and personal care products. According to ComMark Trust, which is dedicated to reducing poverty in Southern Africa, cross-border shoppers spend an average of R9-billion annually.

But there are many problems cross-border shoppers face in South Africa’s commercial capital. "I don’t feel safe here," says Caroline. As a result she stays in Jo’burg for as short a time as possible. "I do not travel on the minibus taxis. I think they are dangerous," she says.

Instead, she has struck up a deal with the driver of a meter taxi. "When I arrive in Johannesburg, the taxi driver picks me up. He drives me to all the places I need to go to buy my things. This takes the whole day." By the time Caroline has finished her round of the city, the total cost for transport is R600.

Cross-border shoppers also battle to find accommodation that is suitable and affordable. According to ComMark Trust’s recent report, Jo’burg lacks the type of accommodation suited to these shoppers.

There are a number of dormitory-style hostels, such as Braamie’s Lodge in Braamfontein, but these are few and far between, and hotels like the Formula Inn are unaffordable for most. What is needed to facilitate the large number of shoppers is cheap, basic accommodation with sufficient storage space.

"I share a two-bedroom flat with 40 people," says Betty from Zimbabwe, pulling up her nose. She pays R80 for a mattress on the floor in the Park Station area. "The place is unhygienic. It is a health hazard. People actually get sick from just staying there." But Betty, who has been coming to shop in Jo’burg for fours years on a regular basis, has no alternative. "I would like to stay in a nice clean place with maybe one or two other people, but I cannot afford it."

Those who do not have contacts or the funds to rent a flat choose to camp out. According to a security guard at Park Station, as many as 500 people spend the night there. They are not permitted to sleep at the station, so people sit with their goods, pretending to be waiting for the bus. The ComMark Trust report says some people live like this for up to a week.

Cross-border shoppers also indicate that there is a general fear of personal security in the city. Not knowing their way around, travelling on taxis, hearing stories about violent crime and an abundance of guns all add to a feeling of insecurity. Particularly stressful for shoppers is the fact that many travel with large amounts of money. As foreigners, they are not allowed to open bank accounts in South Africa, and travelling with cash makes them vulnerable to theft.

"If I could just open an account here, I would feel better," says Horace from Blantyre, Malawi, who comes to Jo’burg on a monthly basis. Horace and his friend Rafick are taking home 15 satellite dishes they bought for R800 each and can sell for about R1 400. And money needed for accommodation, food and transport and the two have walked around Jo’burg with a minimum of R15 000 in cash. "A bank account here would really make a difference," says Horace. "Then I would just transfer the money from Malawi and I would not have to walk around with it."

The City of Johannesburg is concerned about the difficulties that cross-border shoppers face. "We have been looking into cross-border shopping for about three years now," says Hapiloe Sello, Marketing manager of Johannesburg Tourism Company (JTC). The labours of JTC’s lengthy investigation will be revealed at the end of May, with the opening of the cross-border shopping information centre at Park Station.

"We are in the process of recruiting people to staff the information centre," says Sello. "We want people to able to provide information in the languages that the cross-border shoppers speak, for instance, Shona, Ndebele and ideally, even Portuguese." The information centre – with opening hours from 6am to 10pm – will be easily accessible and provide information about accommodation, safety, retail centres and transport.

Part of the information centre will be a cross-border shopping map, highlighting the "beaten track", as Sello puts it. "We want people to see where they can do their shopping."

A particular issue ComMark Trust and the City of Johannesburg are looking into is that of VAT return. Surprisingly, most cross-border travellers do not claim VAT for the items they have bought in Jo’burg. Many are not aware that they have the right to claim back the 14% VAT paid on all new items for which they can show receipts. "This is the first time I have ever heard about it," says Chanetse from Zimbabwe, who comes to Jo’burg every three months. ComMark Trust says the ignorance surrounding VAT returns is widespread.

Most cross-border shoppers, however, are prevented from claiming VAT by practical circumstances. "My bus will leave at around five o’clock in the afternoon. By the time we get to the border with Zimbabwe, the VAT office will be closed," says Betty. Others indicate that the queues are simply too long.

In addition, buses and trains have a schedule to keep to.

ComMark Trust says an estimated R215-million in VAT is left unclaimed on a yearly basis. Niel Fraser, partner in Urban Inc, an urban consultancy aimed at the revitalisation and regeneration of the inner city of Jo’burg, says the city is losing out. "If people claimed their VAT and got money back, they could spend this money again."

JTC is looking into the possibility of setting up a VAT return office in Jo’burg. "We are talking to revenue to explore the options," says Sello.

A relatively simple solution would be to set up a VAT refund office at Park Station, similar to the one that exists in Sandton City. Cross-border shoppers would thus be able to have some of the paperwork that is involved in VAT return claims pre-processed on location, making the procedure at various border posts quicker and more straightforward.

*Only first names have been used as people asked that their full names not be disclosed.

Shoppers stats

• Most cross-border shoppers come from Zimbabwe and Mozambique. Large numbers also come from Swaziland, Botswana and Lesotho.
• The majority come to Jo’burg twice a month.
• The average length of each stay is one to three nights.
• Accommodation used by cross-border shoppers varies from hotels, B&Bs and dormitories to staying at Park Station. Many also stay with friends and family.
• High crime rates and a lack of suitable storage are the main concerns for cross-border shoppers.
• For most, cross-border shopping is the main source of income.

Source: ComMark Trust

Please credit www.kubatana.net if you make use of material from this website. This work is licensed under a Creative Commons License unless stated otherwise.

TOP