Pretoria: Small Business Development Minister Stella Ndabeni has unveiled a R500 million Spaza Shop Support Fund aimed at bolstering the competitiveness of spaza shops and food-handling outlets against larger retailers. The fund is set to launch within the next two weeks, with contributions from both the Department of Small Business Development (R150 million) and the Department of Trade, Industry and Competition (R350 million).
According to South African Government News Agency, the announcement was made following the deadline for spaza shops and food-handling businesses to register with local municipalities on February 28. Businesses that met the registration deadline are now eligible for support through the newly established fund. Minister Ndabeni emphasized that existing departmental programs, including those offered by the Small Enterprise Development and Finance Agency (SEDFA) and other development finance institutions, will continue to provide assistance to other businesses.
The fund’s objectives include linking spaza shops and food outlets to buying groups for bulk purchasing, enhancing business operations through training, and improving market competitiveness. A multi-disciplinary outreach program will be rolled out to bring government services closer to community convenience shops, with awareness campaigns scheduled across the country’s 52 districts and metros from March 3 to March 30, 2025.
The Department of Small Business Development has recruited 61 business regulation officers on six-month contracts to conduct awareness campaigns, research, and geo-mapping of spaza shops. These efforts are part of a broader initiative to streamline the regulatory environment through the Red Tape Reduction Program, which aims to assist municipalities with E-registration systems and streamline business licensing.
Minister Ndabeni highlighted the potential impact of the amended National Business Licensing Bill, which seeks to provide clarity and transparency in business licensing. The goal is to create an environment conducive to entrepreneurship, innovation, and job creation, ultimately fostering economic growth and development in South Africa.