Log In

South African Government Rolls Out R6 Million Spaza Shop Support Fund

Published 1 day ago4 minute read
South African Government Rolls Out R6 Million Spaza Shop Support Fund

The South African government has initiated the Spaza Shop Support Fund (SSSF) with a total of R500 million, aimed at bolstering the participation of South African-owned spaza shops and other food-handling outlets within the retail trade sector of townships and rural areas. The fund was officially launched on April 8, 2025, in Soweto by the Minister of Trade, Industry and Competition, Parks Tau, alongside Small Business Development Minister, Stella Tembisa Ndabeni.

According to Minister Ndabeni, speaking at a media briefing in Pretoria, R6 million of the allocated R500 million has been disbursed so far. She acknowledged that the disbursement process is moving at a slow pace due to the coordination required among various parties involved in inspections, citizenship verification, as well as site and health inspections. The fund is designed to assist shop owners who met the deadline for the registration of an operating permit and is administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA).

The SSSF offers substantial support to eligible businesses, providing funding of up to R300,000 per shop through a combination of grants and low-interest loans. This financial assistance is specifically allocated for initial stock purchases, infrastructure improvements, the acquisition of business development tools, and the adoption of Point of Sale (POS) systems. Furthermore, the fund aids shop owners in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products. Support also extends to training programs covering POS devices, business skills, digital literacy, credit health, food safety, and business compliance.

The initiative has received positive reception at the local level. Daniswa Mafumbatha, the Mayor of Winnie Madikizela-Mandela Local Municipality (WMMLM) in the Eastern Cape, welcomed the fund, highlighting its potential to improve the local economy and the lives of unemployed people in rural areas. During a community awareness campaign in Bizana, attended by over 400 people, Mayor Mafumbatha emphasized the crucial role of small enterprises in economic improvement and unemployment reduction, stating that the fund would undeniably enhance the municipality's economic status. She urged local spaza shop owners to ensure their documentation is in order to access the support. The awareness campaign, hosted by the Department of Trade, Industry and Competition (the dtic) in partnership with the Department of Small Business Development (DSBD), aimed to educate spaza shop owners about the fund and application procedures. Local spaza shop owner Thuthula Madikizela expressed gratitude for the campaign, noting it as an opportunity to gain information on compliance and funding, and appreciated assistance with the application process, which can often be a barrier.

Beyond local support, Minister Ndabeni also outlined broader national and international ambitions for small business development. She announced that South Africa is preparing to host the first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting in Johannesburg from July 22 to July 24, 2025. This meeting, co-hosted with the United Nations Small Business Agency, will serve as a dedicated platform for ministers and officials responsible for Micro, Small and Medium-sized Enterprises (MSMEs) to share strategic insights, shape future policies, and foster global consensus on the small business agenda. Numerous countries, including Brazil, Cambodia, Costa Rica, Egypt, Ethiopia, Kenya, India, Indonesia, and Switzerland, have confirmed participation, with nearly 50 countries expected to attend.

Minister Ndabeni affirmed South Africa's commitment to creating a more enabling legislative and policy environment for small businesses to grow, scale up, and compete globally. A key objective is to galvanize a call-to-action to influence dialogues and decisions at the Group Twenty (G20) Summit, particularly during South Africa's G20 Presidency. The Minister stated, "We are unequivocal that the G20 needs a sharper MSME focus with its own dedicated Working Group, and we will use this Global Ministerial to bolster this position." The Global Ministerial aims to develop and activate strong partnerships across governments, multilateral institutions, and businesses, focusing on practical initiatives to strengthen the global MSME support ecosystem and translate policy into action at the country level. In the days preceding the Ministerial, the Department of Small Business Development will also host Startup20 Task Force planning sessions, allowing Task Force leaders to share insights with global MSME leaders.

Concluding her remarks, Minister Ndabeni passionately urged governments, international agencies, development partners, and the private sector to collaborate in strengthening MSME ecosystems. "Let us deepen our regional and global cooperation, share knowledge, and uplift MSMEs especially those led by women, youth, and persons with disabilities," she said. South Africa assumed the G20 Presidency from December 1, 2024, to November 30, 2025, under the theme: "Solidarity, Equality and Sustainability".

From Zeal News Studio(Terms and Conditions)
Loading...
Loading...
Loading...

You may also like...