BBC Warns South Africans Not To Apply on Behalf of Foreigners for R500m Spaza Shop Fund

• The Minister of Trade, Industry and Competition Parks Tau launched the R500 Million Spaza Shop Support Fund and the Black Business Council has spoken out
• Its deputy president Gregory Mofokeng said that local businesses should benefit from the fund, and foreign nationals must not benefit
• The Fund will be distributed through a blended-finance model and will also help spaza shop owners comply with regulations

Tebogo Mokwena, a Briefly News current affairs journalist in Johannesburg, South Africa, analysed policy changes and small business development at Vutivi Business News for three years.

GAUTENG — The Black Business Council (BBC) has warned South Africans on 13 April 2025 not to front for undocumented foreign nationals and register on their behalf for the R500 million Spaza Shop Support Fund which Parks Tau, the Minister of Trade, Industry and Competition, recently launched.

What did the BBC say?

According to Sunday World, the BBC's deputy president, Gregory Mofokeng spoke about the fund. He said the purpose of the fund was to allow black South African entrepreneurs to participate in the spaza shop industry. Therefore, foreign nationals should not benefit from the fund.

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Mofokeng also called on law enforcement to clamp down on anyone who might front for an undocumented foreign national. He said those who would register on behalf of foreign nationals, would be denying South Africans an opportunity to benefit from the fund.

When did government launch the fund?

Tau launched the Spaza Shop Support Fund on 8 April 2025 in Soweto, Gauteng. In his address, he said that the fund is government taking a concrete step to formalise and empower the formal sector. Tau remarked that the government was committed to ensuring that every spaza shop benefits from the fund.

The fund will help refurbish spaza shops and facilitate wholesale aggregation. Spaza shops will also be given financial and non-financial support and assisted with capacity building and complying with regulations. Businesses that qualify should be 100% South African owned. The DTIC set up a dedicated website for business owners to visit and apply on.

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Articles about government supporting small businesses

• The government announced the R500 million fund in November 2024, which will come in the form of blended finance to assist spaza shops
• Tau revealed in January that the government is planning to launch a R100 billion transformation fund to assist small, micro and medium enterprises
• President Cyril Ramaphosa praised small businesses and gave a nod to the role the play in South Africa's economy

South Africans are hopeless

Netizens commenting on Sunday World's Facebook post did not believe the funds would be available to the public.

Floyd Dlamini said:

"Only 10% of that R500 million is going to spaza shops. The rest is for ANC comrades."

Tiro Kevin Kev said:

"Ethiopians will use the locals to benefit, just like they did to register their shops."

Craig Matwa said:

"The comrades are about to benefit unduly."

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Gustav Otto osaid:

"Tau and his cronies don't stay in townships, so they never consider how rife the protection mafia in the township is."

Chris Shabangu said:

"Forget. It's only the cadres and the ministers in charge of the funding who are going to benefit plus their friends and families as usual."

Soweto child hospitalised after eating spaza shop snack

In a related article, Briefly News reported that a Soweto child was rushed to the Chris Hani Baragwanath Hospital after eating snacks bought from a spaza shop. The incident resulted in a visit from Cooperative Governance and Traditional Affairs minister Velenkosini Hlabisa.

Hlabisa called on community members to be vigilant and prioritise the health and well-being of children. South Africans were concerned that more incidents would happen.

Source: Briefly News