Trade, Industry and Competition Minister Parks Tau and the Minister of Small Business Development, Stella Tembisa Ndabeni, will next Tuesday officially launch the R500-million Spaza Shop Support Fund, an initiative which was first announced by President Cyril Ramaphosa in November 2024.
The fund, which will be jointly administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA), provides critical financial and non-financial support to township businesses, including community convenience stores and spaza shops.
Support for local-owned township shops
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.
“The opening of the applications for the fund marks another milestones in government’s efforts to stimulate the growth of the rural and township economy in the country, particularly by providing the necessary support to the convenience stores and spaza shops that are based in the townships and rural areas.
“Government recognises the important role that small businesses can play in growing our economy. Also including those operating in the rural areas and townships. They can play a role in creating jobs and alleviating poverty,” Ndabeni said.
Supply chain
The fund provides various types of support. These include the initial purchase of stock via delivery channel partners. Also upgrading of building infrastructure, systems, refrigeration, shelving and security. Training programmes will also be funded. These include Point of Sale devices, business skills, digital literacy, credit health, food safety and business compliance.
Tau said the fund supports economic inclusion and aligns with national priorities to formalise informal sectors. To also safeguard consumers and promote local production. He said it is a holistic approach to revitalising township economies.
Partnerships with stakeholders
“Beyond individual support, the fund seeks to bolster the broader supply chain. This it will do by fostering partnerships with local manufacturers, black industrialists and wholesalers.
“Through bulk purchasing arrangements and the promotion of locally produced goods, spaza shops will benefit from reduced costs and increased access to quality products,” Tau said.
- SAnews.gov.za
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