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 Uncertainty and Tension as Ethiopian and Somali Business Ties Strain in Port Elizabeth.

By Mohamed Kosow Salat 


For years, Somali-owned wholesale stores in Korsten have supported hundreds of Ethiopian and Somali spaza shop owners in Port Elizabeth’s informal settlements. This long-standing business relationship is now under strain. 

Earlier this week, the Ethiopian Business Committee in Port Elizabeth warned Ethiopian shop owners to stop buying from Somali qowned wholesalers in Korsten. The message spread quickly through informal trading networks, leaving many Ethiopian business owners confused and anxious. 

"I don’t understand why this decision was made,” said one Ethiopian spaza shop owner, who asked to remain anonymous. “The Somali wholesalers are our main suppliers. Without them, our businesses cannot survive."

The committee has not publicly explained why they issued the warning. This lack of information adds to the uncertainty about how long the boycott may last and what it means for small traders who rely on daily stock purchases. 

In response, members of the Somali community held an emergency meeting to address the situation and prevent tensions from escalating.  Sheikh Shakir, a respected religious and community leader, shared his sentiments on Altibyan WhatsApp platform about the concerns and urged calm, unity, and strategic thinking. 

Sheikh Shakir outlined five proposals aimed at strengthening the Somali business community while avoiding open conflict. 

He called for greater unity among Somalis, suggesting the establishment of elders to guide collective decision making.

 He also encouraged Somali wholesalers to support Somali owned spaza shops by working together and creating microcredit agreements to help them stay competitive in an increasingly challenging market. 

Another proposal focused on internal communication. Sheikh Shakir urged Somali business owners in informal settlements to consult their community and wholesalers before selling their businesses, in an effort to keep Somali-owned enterprises within the community. 

Importantly, Sheikh Shakir emphasized dialogue over division. He suggested a meeting with Ethiopian community leaders to find a lasting solution that protects the dignity and reputation of both communities. He also warned against any actions, such as harassment, intimidation, or violence, that could increase hostility. 

The tensions arise amid rising competition in the informal economy. While Somalis are known for their entrepreneurial spirit, economic pressures have led some Somali shop owners to sell their businesses. Many of these businesses have been taken over by Ethiopian traders, gradually shifting control of key trading points in some areas. 

For now, traders on both sides are left waiting, uncertain about the future of supply chains that have supported families and communities for years. Community leaders stress that cooperation, rather than confrontation, will determine whether this dispute becomes a turning point toward stability or another fracture in the fragile informal economy of Port Elizabeth.

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