The Mayor of Winnie Madikizela-Mandela Local Municipality (WMMLM) in the Eastern Cape, Daniswa Mafumbatha, has welcomed the Spaza Shop Support Fund, saying it will help improve the local economy, particularly the lives of unemployed people in rural areas.

Mafumbatha made the remarks during a community awareness campaign, held in Bizana, on Wednesday.

The campaign, hosted by the Department of Trade, Industry and Competition (the dtic), in partnership with the Department of Small Business Development (DSBD), aims to educate spaza shop owners about the fund and how to access it.

The R500-million Spaza Shop Support Fund was officially launched by the Minister of Trade, Industry and Competition, Parks Tau, together with Small Business Development Minister, Stella Tembisa Ndabeni, in Soweto, on 8 April 2025.

Mafumbatha emphasised the crucial role played by small enterprises in improving the economy and lowering unemployment.

She said the fund's assistance to the spaza shop owners will undeniably improve the municipality's economic status.

"Small businesses are the backbone of our economy, especially in rural communities. This funding support is exactly what is needed to enhance our ongoing efforts to improve the quality of life for our people. As a municipality, we are committed to enhancing the quality of life for our citizens, and the funding support is unquestionably what is required to magnify other initiatives aimed at doing so," Mafumbatha said.

She also urged local spaza shop owners to ensure that their papers are in order, for them to receive the support in large numbers.

One of the spaza shop owners, Thuthula Madikizela, described the campaign as an opportunity for the locals to get more information on compliance and funding of spaza shops.

She said the assistance will be greatly appreciated, because many people lack the funds necessary to make their stores successful and sustainable.

"We are grateful that the departments are also assisting us with the application process, as we sometimes miss opportunities because of filling forms wrongly," Madikizela said.

More than 400 people attended the event.

The national education and awareness campaign is in partnership with the Small Enterprise Development and Finance Agency (SEDFA) and the National Empowerment Fund (NEF), the agencies of the DSBD and the dtic, respectively, which will be responsible for administering the fund.

The campaign will be in the form of interactive sessions in which spaza owners, in and around Mbizana, will get an opportunity to learn more about how to apply for the fund, and what compliance requirements they need to meet.

The aim of the fund is to support South African-owned township community convenience shops, including spaza shops, in order to increase their participation in the townships and rural areas' retail trade sector, and to provide critical financial and non-financial support to township businesses, including community convenience stores and spaza shops.

The fund also provides various types of support, including the initial purchase of stock via delivery channel partners, upgrading of building infrastructure, systems, refrigeration, shelving and security, as well as training programmes, which includes Point of Sale devices, business skills, digital literacy, credit health, food safety, and business compliance.