Pretoria: Trade, Industry, and Competition Minister Parks Tau, alongside Minister of Small Business Development Stella Tembisa Ndabeni, will officially launch the R500 million Spaza Shop Support Fund next Tuesday. This initiative was initially announced by President Cyril Ramaphosa in November 2024.
According to South African Government News Agency, the fund will be jointly managed by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA). It aims to provide essential financial and non-financial support to township businesses, including community convenience stores and spaza shops. The primary goal is to increase the participation of South African-owned township community convenience shops in the retail trade sector of townships and rural areas.
Minister Ndabeni highlighted the significance of this fund, stating that it represents a milestone in the government’s efforts to stimulate growth in rural and township economies by supporting convenience stores and spaza shops. The government acknowledges the vital role that small businesses in these areas can play in job creation, economic growth, and poverty alleviation.
The fund offers various types of support, such as the initial purchase of stock through delivery channel partners, infrastructure upgrades, systems, refrigeration, shelving, and security enhancements. Additionally, it provides training programs covering Point of Sale devices, business skills, digital literacy, credit health, food safety, and business compliance.
Minister Tau emphasized that the fund aligns with national priorities by supporting economic inclusion, formalizing informal sectors, safeguarding consumers, and promoting local production. It is a comprehensive approach to revitalizing township economies.
Beyond individual support, the fund aims to strengthen the broader supply chain by fostering partnerships with local manufacturers, black industrialists, and wholesalers. Through bulk purchasing and the promotion of locally-produced goods, spaza shops are expected to benefit from reduced costs and increased access to quality products.