Unlocking the Potential of Food SMEs to Boost Income and Food Security in South Africa
Date
2026
Authors
Selma T. Karuaihe
Wegayehu Fitawek
Enoch Owusu-Sekyere
Herbert Ntuli
Hettie C. Schönfeldt
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
From the business side, women dominate the food SME sector in South Africa, with majority being Black South Africans.
• The type of food SME (i.e., spaza shops, restaurants and fruit and vegetables) has a significant impact on income1.
● SMEs operating restaurants generate the highest weekly income, making cooked foods more profitable than selling fruits and vegetables, which is the least profitable of all.
● In terms of food security, nearly half (48%) of households had an adequate diet, consuming more than six food groups in the study area.
● The food security status of the household was determined by multiple socio-economic factors, including the household age, sex, education level, family size, ethnicity, number of working adults, household income and food expenditure.
● The informal food markets play a crucial role in ensuring food and nutrition security, with over 60% of consumers purchasing fruits and vegetables from street vendors.
● Spaza shops serve as key sources of grains, nuts, legumes, dairy, poultry, and meat, making them essential for food accessibility and affordability in low-income communities.
• Policy recommendations to support SMEs selling fruits and vegetables should include training on proper handling, cooling, and temperature management of fresh produce