DA Gauteng calls for urgent action on Thokoza Distribution Centre’s stock crisis harming township businesses

Issued by Nazley Sharif MPL – DA Gauteng Spokesperson for Economic Development
25 Feb 2025 in Press Statements

Gauteng spaza shops and supermarkets are struggling to obtain stock from the Thokoza Distribution Centre due to the Gauteng Department of Economic Development’s failure to replenish stock. As a result, shop owners cannot access affordable products, which hinders their ability to compete in the current economic environment.

The DA Gauteng made this shocking discovery during its recent oversight inspection at the Thokoza Distribution Centre, where shelves are visibly empty.

The concept of a distribution centre is to offer better access to inventory for locally owned spaza shops at competitive prices and to enhance job prospects within communities. Consequently, the absence of products on shelves suggests that this initiative is falling short despite the substantial financial investment.

“While this poor level of service delivery is unsurprising, it is at a great cost to those it is meant to benefit. The Gauteng Provincial Government and its implementing agencies, like Family Tree Holdings, should be held accountable for the lack of oversight and management of distribution centres. Selling dreams to people who struggle to make a living is unethical and they must be held responsible,” says Nazley Sharif MPL, DA Gauteng Spokesperson for Economic Development.

“The GPG has failed the Township Economy in every aspect and this distribution centre is only one example. We deserve a government that cares about our interests and works tirelessly to contribute to boosting the economy, create the environment for jobs to flourish and improve the living conditions of every Gauteng resident,” adds Sharif.

“I have repeatedly urged the portfolio committee on Economic Development to summon the GPG’s implementing agent, Family Tree Holdings, to appear and account for the ongoing failures observed on the ground. However, my requests have been met with excuse after excuse. The most recent explanation is that an audit will be conducted, despite a previous recommendation from the committee to implement a forensic investigation related to these exact issues,” concludes Sharif.

The DA Gauteng will submit questions to the Gauteng Provincial Legislature (GPL) to clarify why stock in the Thokoza Distribution Centre has not been replenished nearly a year after our initial visit in March 2024.

A Gauteng provincial government led by the DA would ensure that proper processes and policies govern projects, holding both implementing partners and us accountable. Taxpayers’ money would be spent wisely on programmes and initiatives that make a real difference, not for window dressing.

The DA will continue to advocate for accountability from the Gauteng government and its implementing agencies to ensure local businesses receive the support they need to succeed and contribute to the provincial economy.