City of Johannesburg Roadshow To Promote R500m Spaza Shop Fund Given Mixed Reactions

• South Africans had mixed reactions when the city of Johannesburg said it would embark on a roadshow to promote the R500 million spaza shop fund
• The government announced the initiative earlier this year, promising spaza shop owners blended finance
• South Africans were worried that the funds would be plundered and expressed their concerns on social media

Tebogo Mokwena, a Briefly News current affairs journalist in Johannesburg, South Africa, has covered policy changes, cabinet reshuffles, the State of the Nation Address, Parliament and Parliamentary committees, politician-related news and elections at Daily Sun and Vutivi Business News for over seven years.

JOHANNESBURG—South Africans were worried about the R500 million spaza shop fund after the City of Johannesburg announced that it would embark on a roadshow to promote it.

Roadshow for the R500m spaza fund

According to SABC News, the roadshow is expected to start on 26 May 2025, a month after it was launched in Soweto. The Spaza Shop Fund aims to support Spaza shops in rural and township areas. It provides spaza shop owners with financial and non-financial support.

The Spaza Shop Fund will also be given in blended finance, meaning the loan will have grant and interest-free loan components. The City's Virgil James said that the roadshow will be held in the seven regions of the city.

The roadshow will continue until July. James called on spaza shop owners to attend and be informed so they can access funding and collaborate with the City to promote compliance.

Government launches spaza shop initiative

The government launched the Spaza Shop Support Fund in April in Soweto. The Department of Small Business Development and Trade, Industry and Competition joined forces to create the fund, which provides up to R300,000 in funding per spaza shop.

The Black Business Council called on South Africans not to apply for the spaza shop fund on behalf of foreigners. The deputy president, Gregory Mofokeng, said local businesses must benefit from the initiative. He also called on law enforcement to clamp down on South Africans who might front for foreign nationals.

What did South Africans say?

Netizens commenting on SABC News' Facebook page were concerned that the fund would be looted and pillaged.

Gift said:

"The looting and the corruption that's about to happen will be unprecedented. Comrades will chow these funds now."

Camangrla Kubyi asked:

"The question is: Will the people get that money, or will it go missing, and will the same people act like they don't know what we are talking about when asked about the money?"

Zama B McHeaven asked:

"Who is going to get these funds? Are they funding foreign nationals? South Africans no longer own spaza shops since they cannot compete with them."

Ivoniitah Mabiza said:

"This is just for a media show, since it's an ANC-aligned municipality."

Mmina Phuti said:

"Comrades are in jubilant spirits now. Only R50K will go to actual spazas and the rest will end up being chowed by yellow bone slay queens and customised Mercedes Brabus G63 rides."

Nasiphi Moya calls for local spaza shop owners to be prioritised

In a related article, Briefly News reported that Tshwane Mayor Dr Nasiphi Moya doubled down on her calls for spaza shops to be owned locally. She addressed the council during her 100 days in office.

Moya repeated statements she made in Soshanguve in 2024, where she said localisation was intended to address the high levels of unemployment. She said it will empower residents to put food on the table.

Source: Briefly News