Government Launches R500 Million Spaza Shop Support Fund to Boost Local Businesses

• Applications for the highly anticipated Spaza Shop Support Fund (SSSF) have been officially opened
• The fund aims to provide funding of up to R300 000 per shop through a combination of grants and low-interest loans
• Funds can be used for initial stock purchases, improvements, business development tools, and the adoption of point-of-sale (POS) systems

The South African government has officially opened the applications for the R500 million Spaza Shop Support Fund. The purpose of the fund is to increase the participation of South African-owned spaza shops in rural areas and townships and to create a formalised and inclusive sector that is beneficial for all South Africans.

How does it work?

According to its website, the Spaza Shop Support Fund, backed by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (DTIC), is designed to support township and rural convenience stores (spaza shops) through both financial and non-financial assistance.

Read also

SASSA grant online application 2024: How to apply for Social Relief of Distress

The fund provides funding for up to R300 000 per shop, which can be used for stock purchases, improvements, and development tools. It is made up of grants and low-interest loans. The fund will also provide shop owners with training and assistance in meeting hygiene and regulatory standards to ensure high-quality and safe products.

The fund will be administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA).

The funds may not be used for personal expenses or any costs unrelated to business development, including the sale of alcoholic beverages. It should be used to purchase goods and services from accredited local suppliers that meet all relevant regulatory standards, particularly for setup and operational expenses.

What the Minister said

The Minister of Trade, Industry, and Competition, Parks Tau, believes that the support fund will play a crucial role in creating jobs, fighting poverty, promoting economic inclusion, and stimulating local economic growth. He said that the government is committed to ensuring that every South African is benefiting from this fund.

Read also

SARB plans to sell its stake in African Bank

The Minister believes that the fund is a step closer to formalising the informal sector. This means that more opportunities arise for local talent and a decrease in poverty in townships. The fund will also create workspaces that are secure and sustainable and not only economically beneficial.

Who qualifies for funding?

In order to qualify for the support fund, one must be a South African citizen with a spaza shop operating in a rural or township area. The shop must be registered with the municipality and with the Companies and Intellectual Property Commission (CIPC). The company must have a valid registration with the South African Revenue Service (SARS).

3 more stories about spaza shops

• Gauteng MEC for Finance and Economic Development, Lebogang Maile, revealed that a large portion of spaza shop registration applications were submitted by foreign nationals.
• Tshwane Mayor Dr Nasiphi Moya reiterated her stance that spaza shops should be exclusively owned by South Africans.
• The South African government declared foodborne deaths a national disaster following the deaths of more than 20 children who consumed snacks bought from spaza shops.

Source: Briefly News