Pretoria: Work to establish a R500 million joint fund to support township and rural businesses – including local convenience shops – is underway. This initiative aims to bolster the infrastructure, regulatory compliance, and capacity-building of small businesses that are vital to local economies.
According to South African Government News Agency, Minister of Justice and Constitutional Development Thembi Simelane addressed the media concerning this significant development. She mentioned that the responsible departments are diligently drafting standard operating procedures and guidelines to ensure the fund’s proper usage and accountability. This groundwork is projected to conclude within the next two weeks.
Minister Simelane elaborated that approved rural and township businesses will have access to this fund, highlighting the importance of enhancing their operational capabilities. The application and disbursement process for the fund will commence post-registration and will include rigorous auditing to preven
t fraud and irregularities.
Eligibility requirements for the fund stipulate that business owners must be South African citizens operating within the country and serving local communities. Businesses must also be registered with their local municipalities and comply with SARS regulations. Priority will be given to entrepreneurs aged 18 to 35, with a focus on female-owned businesses.
The Department of Small Business Development is taking steps to create a central data hub with geo-mapping capabilities to monitor the township and rural economy effectively. This initiative aims to build a national database of registered small businesses and spaza shops to strengthen regulatory oversight and prevent future health crises.
Simelane emphasized the legal requirements for operating small businesses, stating that shop owners who meet legal criteria are entitled to conduct business. The government is committed to ensuring that all legal prescriptions are followed during the registration process.
Concerns have arisen
following President Cyril Ramaphosa’s announcement mandating the registration of all spaza shops within 21 days. Reports suggest that some South Africans may be registering these businesses on behalf of illegal foreign nationals, a practice Simelane condemned as fronting.
The Minister reminded the public that the Immigration Act forbids aiding illegal foreigners in obtaining business licenses. Landlords must ensure their tenants comply with local business regulations and immigration laws. Allegations of civil servants involved in fraudulent registrations are being taken seriously, and legal action will be pursued.
Simelane urged South Africans to refrain from interfering with the registration process, emphasizing that law enforcement will act against those attempting extortion. The public is encouraged to report suspected corruption via the National Anti-Corruption Hotline.
This initiative represents a significant step towards supporting township and rural businesses, ensuring their sustainability, and pre
venting malpractice in their registration and operation.