Cross-border Retail Tourism

For many cross-border African shoppers and traders, shopping in South Africa is a regular activity, and part of their occupation. Johannesburg, where cross-border shopping is concentrated, offers a significant opportunity to trade, make money and obtain supplies for families and customers back home. The annual spend by African cross-border shoppers and traders contributes substantially to the tourism economy in South Africa – despite these activities being associated with low-income entrepreneurs, 52% spend more than R10,000 per trip and visit the country on average four times a year, which amounts to total annual spend of just under R6-million.

Although this burgeoning sector is a significant contributor to small business development in Africa, traders are faced with a number of challenges which restrict the expansion of their businesses and their total spend. Crime is a common problem – specifically the theft of cash or goods and public safety around accommodation establisments – while regulatory issues such as visas, passports and trading licences, tax and tax refunds, border and customs hassles, and payments and procedures for customs control pose challenges to growth in the sector.