Soweto: Government has officially opened applications for the R500 million support fund aimed at increasing the participation of South African owned Spaza Shops in the townships and rural areas retail trade sector.
According to South African Government News Agency, Minister of Trade, Industry and Competition, Parks Tau, announced that the Spaza Shop Support Fund (SSSF) will transform the spaza shop landscape by creating jobs, alleviating poverty, promoting economic inclusion and empowerment, and stimulating local economic growth.
The fund provides up to R300 000 per shop through a combination of grants and low-interest loans. It allocates funding specifically for initial stock purchases, infrastructure improvements, business development tools, and the adoption of Point of Sale (POS) systems. Additionally, shop owners will receive assistance in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products.
Minister Tau emphasized the government’s commitment to ensuring that
every spaza shop benefiting from this fund gains access to necessary health and safety training and resources, creating economically vibrant and sustainable workplaces. He highlighted that small businesses account for a significant portion of job creation in South Africa.
By equipping spaza shop owners with financial support, infrastructure upgrades, and essential business training, the fund aims to set the stage for sustainable job creation, offering more opportunities for local talent and reducing poverty levels as spaza shops expand their community roles.
The fund will be administered jointly by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA). Minister Tau outlined the vision of a South Africa where economic opportunities are accessible to all, supporting the formalization and empowerment of the informal sector. This initiative is aimed at enabling entrepreneurs, often women and young people, to fully participate in the economic process.
To access the fund
ing, applicants must apply to the NEF and SEFDA through the prescribed application process outlined on the relevant institution’s website.