Sunday, August 31, 2008

Foreign Shopkeepers - Tensions Run High

Tensions are rising in the Wallacedene area in the Western Cape between local businesses and owners of new low-cost government houses who are renting their properties to foreign shopkeepers as business premises.

In many cases the owners of the houses have not yet been given their keys but they are making an average of R1 500 a month in rentals from foreigners. The situation is infuriating local shopkeepers, who say the foreign business are undercutting them. And they say the owners of the houses should be living in them and not making money from them.

People who have been on a housing waiting list for years were recently allocated the houses by the provincial housing department.

Just two weeks ago the community buried its "housing heroine" Irene Grootboom, who went to the Constitutional Court in 2000 to force the government to provide housing for the poor. Grootboom died while still living in a shack, waiting for her own house.

Mzwandile Mfundisi, secretary of the Kraaifontein Small Business Association, said their members were upset about the Somali businesses running from the houses because their prices were too competitive.

"We are struggling on our side since they started, because they will charge half of our prices. We run our businesses from our own houses or from proper business premises."

The Small Business Association has around 800 members in the area, who either run shops or bottle stores.

"Our members are closing shops every day because of this situation, we are losing money every day. And every day you see another shop opening. One minute the house is standing there, the next minute it's a shop. Some of these houses don't even have toilets yet.

"It affects our people who have been running businesses here for years who can't even afford to support their families properly. Since the beginning of the year more than 20 local people have closed their shops," Mfundisi said.

Businesses which usually made about R3 000 a month now made about R1 000 because of the "situation", Mfundisi said. "We tried several times to speak to the police station commander and they spoke to these people but nothing has stopped. We are now busy with getting together with the housing department about this," Mfundisi said.

Chippa Arosi, chairman of the local branch of the South African National Civics Organisation (Sanco), said: "We are concerned about this because these are government houses given to the poorest of the poor. The owners are staying in their shacks, giving their houses to businesspeople who are not even from the area. Their shacks get flooded every year and they've been waiting for houses for years."

Sanco represents the community of Wallacedene and Bloekombos.

Arosi said around 3 000 new houses had been built in the area in the past five years. Before the xenophobic attacks in May, people ran businesses mostly from business premises and there were no problems.

"We see this as a dangerous situation because these are people's houses and it's causing tension. We spoke to the owners to explain this. They didn't even know it was a problem to rent their houses to business people, because to them it's about money."

The organisation had spoken to Somali shop owners and explained that the situation they were in could be dangerous to them, but Arosi said they responded that they were running a business and paying for it.

One homeowner, Sandile Sigcbu, who is renting his unfinished house to a businessman, said he had not yet received a key. He was living in one room of the two-bedroom house.

Sigcbu said he charged a Somali shopkeeper rent of R1 000 a month for the lounge and the other bedroom.

"They gave me the house and he wanted it for a business so I gave it to him. He gives me money. I need the money. I stay in the one room and they use the other room," he said. - Cape Argus

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