The Department of Small Business Development (DSBD) said today it had formalised over 2 000 spaza shops across the country during the COVID-19 pandemic.
Minister of DSBD Khumbudzo Ntshavheni said the formalization of the sector would assist the newly formalised businesses to build a credit profile, which would make them viable to access financing with banking institutions.
“We were able to formalise 2 242 spaza shops and [we] are processing applications from 4 406 spaza shops. We are already processing applications from 31 small-scale and informal bakeries, some of which are run by cooperatives. We have 33 applications from motor mechanics and panel beaters, and also from 15 enterprises that are making clothing and garments for our people,” said Ntshavheni.
“The importance of formalisation is that during this difficult period, you are able to assist these businesses to build a credit profile, and then they can be able to access credit from financial banks without being dependent on government. We are supporting these small enterprises to formalise and we will stay with them for the next 24 months because we want them to build a credit profile and run profitable businesses. We have also partnered with the banks to make sure they can create products that are suitable and less costly to the small and informal businesses,” she added.