Johannesburg - Entrepreneur Miles Khubeka has found an innovative way to disrupt the townships’ retail market through the establishment of Gcwalisa, a grocery refill dispensary outlet in Alexandra, Johannesburg.
This innovation provides a multi-pronged solution for informal settlements that are drowning in waste because of the lack of refuse collection services. Gcwalisa’s refill process eliminates the need for single-use plastics and/or containers.
Gcwalisa is a unique tuckshop where they sell food items using a weigh-and-pay model. For example, customers can get 250g mealie meal for as little as R4 or 250ml cooking oil for R12. To qualify for these low prices, the customer needs to bring their own container/jar or they can purchase a reusable jar from Gwcalisa.
This idea was driven by the need to reduce single-use plastic in Alexandra.
Khubeka was exposed to the refill business model as a young boy when his mother sent him to buy tea, coffee and sugar. He saw an opportunity to disrupt the traditional retail business model which encourages consumers to buy more than they need.
The outlet allows low-income communities to buy household essentials in quantities and prices that suit their budget, using the shop’s refill dispensers.
“Low-income consumers dedicate a significant portion of their income to buying food,” said Khubeka.
Low-income households are most at risk when their income drops or food prices increase.
Khubeka said: “Many of these families live in households that cannot purchase large quantities of food at one time, hence the prevalence of spaza shops in these areas. The traditional retail model does not benefit these consumers as they are forced to bear the brunt of high food prices.”
The September Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD) showed steep food prices in South Africa despite lower fuel and global commodity food prices.
The PMBEJD basket of nutritional foods came to R4 805. Month on month, the average cost of the basket escalated by R30.28 (0.6%), from R4 775 in August this year, while year on year, the basket increased by R586.39 (13.9%), from R4 219 in September last year. Foods that are prioritised and usually bought first have remained too high in relation to the ability of households to pay.
Gcwalisa’s distinctive concept is to create a direct channel between the producer and the consumer. “We purchase the products directly from the manufacturer, so consumers have the opportunity to purchase more affordably priced household items. Further to this, our business model enables brands to supply the informal market in bulk using a branded refill dispensers,” Khubeka said.
His plans for the future include expanding to other townships and to rural areas outside of Johannesburg. Each of his retail outlets will employ four staff members, thus creating job opportunities in rural and township communities.
When asked how the community had reacted to Gcwalisa, Khubheka said: “The community has been very supportive and we are very grateful for that. We have been embraced not only by the people of Alex but have been supported by the City of Johannesburg too. Moreover, other townships across the country are asking when we are coming to their street corner.”
Mandisa Zondi, another Alexandra resident, said: “Food prices have skyrocketed so much that it is hard keep up. You can send a child to the shop and they will come back informing you that the spaza shop owner is charging more than usual.”