The government is stepping up to support small businesses with a game-changing initiative. Small Business Development Minister Stella Ndabeni has announced a massive R500 million Spaza Shop Support Fund to help township convenience stores compete with larger retailers.
Speaking in Pretoria on Sunday, Minister Ndabeni revealed that the fund will be launched within the next two weeks. This initiative is backed by R150 million from the Department of Small Business Development and R350 million from the Department of Trade, Industry and Competition. It’s all about strengthening local businesses and ensuring they remain competitive.
The announcement comes just after the registration period for spaza shops and food-handling businesses closed on 28 February. If you managed to register on time, expect some well-deserved support coming your way. But even if you missed the deadline, don’t worry—there are still funding opportunities available through the Small Enterprise Development and Finance Agency (SEDFA) and other development finance institutions (DFIs).
So, what’s the big plan? The fund aims to give spaza shops a real edge by linking them to buying groups for bulk purchasing, offering training to improve shop operations, and boosting their ability to compete with big retailers. This isn’t just about money—it’s about building strong, sustainable businesses that uplift communities.
The government is taking this a step further with a multi-disciplinary outreach programme. From 3 March to 30 March, awareness campaigns will roll out across all 52 districts and metros. These will be led by district champions, SEDFA, and business regulation officers, ensuring that every spaza shop owner knows how to access support and grow their business.
To keep things running smoothly, 61 business regulation officers have been recruited on six-month contracts to conduct research, run campaigns, and map out spaza shops and food-handling outlets. This data will be crucial in shaping future policies and interventions.
Of course, there’s still work to be done on cutting red tape. Minister Ndabeni emphasised that the government is streamlining the regulatory environment through a Red Tape Reduction Programme. Municipalities will be supported with e-registration systems to simplify business licensing, making it easier for entrepreneurs to get started and thrive.
The upcoming National Business Licensing Bill promises to bring clarity and consistency to business licensing in South Africa. Once approved, it will reduce bureaucratic hurdles, create a more business-friendly environment, and ultimately contribute to economic growth and job creation.
For me, this is a huge step in the right direction. Spaza shops are the heartbeat of many communities, providing essential goods and services while creating jobs. With this fund, they’ll not only survive but thrive. Now, let’s spread the word and make sure every spaza shop owner takes full advantage of this opportunity!