In a major move to support small businesses in South Africa, the government has officially launched the R500 million Spaza Shop Support Fund (SSSF). This fund is tailored to assist South African-owned spaza shops in rural areas and townships by offering up to R300,000 per shop.
The financial aid will come in the form of grants and low-interest loans, and aims to transform the informal spaza shop sector into a formal, inclusive, and thriving part of the local economy.
Purpose of the Fund
The SSSF has been developed by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (DTIC). The goal is clear: to boost South African-owned township and rural convenience stores through financial and developmental assistance.
Here’s what the fund aims to cover:
Stock purchases – Ensuring shops are well-stocked with essentials.
Shop improvements – Upgrading the physical condition of stores.
Business development tools – Including training and support systems.
Point-of-sale (POS) systems – Modernizing how shops manage sales and stock.
This fund is about more than just money. It’s about empowering local entrepreneurs to run clean, safe, and sustainable businesses that contribute to job creation and poverty reduction.
Who Will Manage the Fund?
The National Empowerment Fund (NEF) and the Small Enterprise Finance Agency (SEFA) will be the two key institutions managing and distributing the funds. Their responsibilities also include:
Processing applications
Disbursing funds
Providing training
Monitoring compliance and results
Related: How to Verify a Spaza Shops Registration & What to Do If It’s Not
Who Qualifies for Funding?
If you’re a South African citizen who owns a spaza shop in a township or rural area, this opportunity could be for you. To qualify:
You must be a South African citizen.
Your shop must be registered with your municipality.
Your business must be registered with CIPC (Companies and Intellectual Property Commission).
You must have a valid SARS registration.
Applicants will also need to follow hygiene regulations and may not use funds for personal expenses or prohibited items like alcoholic beverages.
How to Apply for the Spaza Shop Support Fund
Applying is simple and can be done online. Here’s a quick guide:
Go to the application portal: www.spazashopfund.co.za
Submit required documents:
South African ID
Municipal permit
CIPC registration
SARS documentation
Complete the application: Fill in your shop and personal details.
Wait for feedback: Successful applicants will be notified via email or SMS.
You can also call 011 305 8080 or email Spazafund@nefcorp.co.za for more help.
What the Government Says
Minister of Trade, Industry, and Competition, Parks Tau, says the fund is a vital part of building a strong and inclusive local economy. “We are creating jobs, reducing poverty, and helping local shops grow into formal businesses,” he said.
Minister Stella Ndabeni-Abrahams, from the DSBD, added that this initiative marks a big step towards formalising the informal sector and bringing small businesses into the mainstream economy.
More on Spaza Shops
1. Spaza Shop Registrations
In Gauteng, many spaza shop registration applications have reportedly come from foreign nationals. This fund, however, is strictly for South African citizens.
2. Political Backing
Tshwane’s Mayor, Dr Nasiphi Moya, has spoken strongly in favour of South African-only ownership of spaza shops to ensure local economic empowerment.
3. Health Concerns
Recently, food safety became a national issue when over 20 children died after eating snacks bought from spaza shops. This tragedy led the government to declare foodborne deaths a national disaster, reinforcing the need for proper training and hygiene in these businesses.
A Better Future for Spaza Shops
This R500 million fund represents more than just financial aid—it’s about dignity, development, and economic upliftment. It’s a chance for thousands of hardworking South Africans to turn their corner shops into beacons of local growth.
With proper tools, training, and support, the humble spaza shop could become a cornerstone of township and rural economies—generating employment, providing essential goods, and bringing stability to communities across the country.
Source: Independent Online (IOL)
