The Department of Trade, Industry, and Competition (the dtic) and the Department of Small Business Development have committed to engaging with municipalities to unlock bottlenecks hindering spaza shop owners to assist them obtain their business permits. This is according to the Project Manager of the Spaza Shop Support Fund at the National Empowerment Fund, Ms Siziwe Zulu. Zulu was addressing the Spaza Shop Support Fund interactive session at George Phadagi Town Hall, Thohoyandou, today.
The business license/trading permit is a requirement for spaza shop owners to apply for the Spaza Shop Support Fund.
The application of the business license was announced by President Cyril Ramaphosa in November 2024, for owners of small businesses, spaza shops and other food handling convenient stores to register their businesses by the end of February this year.
“Other requirements for spaza shop owners to apply for the fund include 100% South African ownership, operating in rural and township areas, and ownership of a certificate of acceptance for the spaza shop if they are handling food,” added Zulu.
As she explained the application process and urging spaza shop owners to take full advantage of the opportunity to formalise and grow their businesses, Zulu discouraged fronting. She said fronting was fraud and undermine government efforts to support businesses and grow local economies.
“The fund is a critical intervention that aims to reposition township spaza shops as competitive and sustainable enterprises that can create jobs, support local suppliers, and contribute to the broader economy,” stated Zulu.
According to Zulu, spaza shop owners can apply for R100 000, which consists of R40 000 for stock, R50 000 for assets and infrastructure, and R10 000 for non-financial support. She urged spaza shop owners to get their documents ready and apply.
The Manager of Local Economic Development at Thulamela Municipality, Mr Mulalo Nemakonde said the municipality welcomed the fund. He pledged the municipality’s support to the spaza shop owners in their journey of accessing the fund in order for them to grow and become competitive and sustainable.
“Generally, small businesses do not have funds to upgrade their infrastructure and bulk buy. We are therefore excited about the fund which we believe will supplement other local initiatives that support small businesses. The municipal purse is small, and we cannot fully support these businesses on our own. We urge the two departments to simplify the application process and reduce the red tape, so that spaza shop owners can access the fund in large numbers and receive the financial support, upgrade their infrastructure and receive essential business training,” added Nemakonde.
The Deputy Director of Funding Support and Coordination at the Department of Small Business Development, Mr Matthews Radebe, said he was encouraged by the turnout of the spaza shop owners. He expressed confidence that most of them would definitely take the opportunity.
“The support we are offering through the Spaza Shop Support Fund aims to improve their businesses through the provision of infrustructyre, equipment and stock,” said Radebe.
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 next session of Spaza Shop Support Fund is scheduled for the Mopani District Municipality, Ba-Phalaborwa on 1 July 2025.
Enquiries
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
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WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
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