How to Start a Spaza Shop in South Africa & Make It Profitable

If you’ve ever dreamed of owning a small business that serves your community while creating a stable income, opening a spaza shop might be the move. These neighbourhood convenience stores are more than just places to buy bread and airtime. They’re the heartbeat of South Africa’s informal economy.

Starting a spaza shop can be a smart way to create steady income and build a loyal customer base. But it’s not just about opening the door and hoping for the best. It’s about planning, using the right tools, and making small, consistent moves that keep the shelves stocked and customers happy.

From choosing the right location to picking payment tools that fit your business, here’s your guide to starting, running, and growing a spaza shop that lasts.

What is a spaza shop?

A spaza shop is a small, informal retail store often run from a home, garage or container. These shops provide everyday essentials to people in the local area, offering affordable and accessible alternatives to supermarkets.

Spazas play an important role in township and rural economies. They create local jobs, offer fast service, and save customers money and time compared to bigger stores. Over time, they’ve evolved from basic stalls into smart businesses.

While cash is still common, more owners now accept card payments, track sales through the iKhokha App, and use tools to manage cash flow. This shift makes it easier to compete, stay organised, and grow profits.

How to start a spaza shop from home

Thinking about starting a spaza shop at home? You’re not alone. Many successful shop owners begin right from their front rooms. Here’s what you need:

Basic setup:

Stock essentials:

Legal setup:

where to register a company in South Africa

Payment tools:

iK Flyer

Promotion:

Need help getting going? Consider an iK Cash Advance to fund your first big stock order.

What you need to run a successful spaza shop

Running a successful spaza shop means doing the small things well, every day.

That includes:

Keeping shelves stocked with the right products
Charging the correct prices
Offering reliable payment options
Knowing what’s selling (and what’s not)
Reducing errors and speeding up service, especially during busy hours

These may sound simple, but when your shop is busy, juggling these responsibilities can be overwhelming, especially if you're doing everything manually. Having the right tools in place helps you work smarter, not harder.

The iK Flyer is more than just a card machine. It’s your all-in-one sales partner, helping you accept payments, track your spaza shop income, and speed up service. With the built-in Catalogue feature, you can:

Load your full product list once and keep it saved
Tap to add items without having to remember prices
Automatically keep prices and products consistent across your sales
Categorise items for easy access during peak hours
Use the search bar to find products instantly
Spot any uncategorised items so nothing slips through the cracks

And with the built-in Catalogue feature, you don’t need to remember prices or descriptions. Just tap, add, and sell. It simplifies how you manage your products, keeps things consistent across your team, and reduces the time it takes to train new staff.

You can even categorise your products, find them with the search bar, and see what’s uncategorised so nothing slips through the cracks. Whether you’re working alone or with a team, the Catalogue brings calm to the chaos of retail.

Plus, when you pair your iK Flyer with the iK Debit Card, your payouts land the same day, so you can restock without delay. And because everything connects to your iK Dashboard, you’re always in control, even when you’re away from the shop.

How much can a spaza shop make in a day?

How much can a spaza shop make in a day? It depends on location, stock, and pricing. On average, a small shop can earn anywhere from R500 to R3,000 in daily turnover. High-volume locations can see even more.

While profits vary, good record keeping and smart stock management can help you:

Avoid waste and deadstock
Reorder only what sells
Understand your real margins
Set clear targets to increase your spaza shop income month-on-month
Plan for seasonal surges like month-end or public holidays

Use your iK Dashboard to track your sales over time and spot opportunities to optimise pricing or introduce new products.

Do spaza shops pay tax in South Africa?

Many shop owners ask, do spaza shops pay tax?

Yes, if your shop is registered and earns above the tax threshold, you are expected to file and pay tax like any other business.

To stay on the right side of the law and unlock growth opportunities:

Register your business with CIPC. Here’s a handy registration guide.
Make sure you’re keeping clear, easy-to-read records of your income and expenses.
Use tools like iK Flyer to automatically record transactions and reduce admin.
Make use of your iK Dashboard to export sales reports for SARS filings.
Consult with a tax advisor if you're unsure how to register or file returns.

Being registered helps you separate business from personal finances, access funding, and build a credible, long-term operation.

Common challenges facing spaza shops

Every business comes with its own set of challenges, and the spaza shop business is no different. Whether you’re just starting out or running a busy store, it’s normal to face a few bumps along the way.

Running a spaza shop isn’t without its hurdles.

Common issues include:

Stock theft
Cash-only limitations
Price disputes
Loadshedding disrupting operations
Limited access to wholesale pricing or bulk stock

Here’s how iKhokha can help you overcome these hurdles:

Accept card payments to reduce theft and give customers options.
Keep prices stored digitally in your app to avoid confusion.
Use 3G-enabled card machines so you can trade through loadshedding.
Track sales in real time to manage stock better.
Access your money instantly with the iK Debit Card.

Smart ways to grow your spaza shop

Once your spaza is up and running, the next step is scaling it to meet growing demand. Small changes can lead to big improvements in both revenue and efficiency. Here, we’ll outline practical steps you can take to increase your shop’s performance over time.

Want to take your shop to the next level?

Start with small wins:

Upsell: Offer deals like "Buy 2 for R10" on snacks
Expand your product mix: Add electricity, DStv payments or baked goods
Track performance: Use your iK Dashboard to spot trends and plan smarter buys
Offer customer accounts or loyalty-based discounts
Improve service speed with the Catalogue feature in iK Flyer
Reinvest wisely: Use profits to add shelving, improve signage or extend trading hours

As your customer base grows, so can your range, space and even location. Growth doesn’t have to mean big risks, just smart moves.

Why technology is key to a thriving spaza shop

Running a spaza shop today is about more than stocking shelves. It’s about having the tools to work faster, smarter, and more confidently. Technology helps spaza owners move from survival mode to sustainability, unlocking new opportunities to grow and compete.

With digital tools like the iK Flyer, you can: