Govt Launches R500M Spaza Shop Fund

The government will launch a R500 million spaza shop support fund within two weeks to boost small businesses in need of financial assistance.

Minister of Small Business Development Stella Ndabeni-Abrahams announced the initiative on February 2, aligning it with the February 28 deadline for spaza shop and food outlet registrations. The fund, a collaboration between her department and the Department of Trade, Industry, and Competition, aims to improve compliance, enhance competitiveness, and prevent foodborne illnesses.

Recognizing the financial burden of compliance, the government will provide non-financial support over six months to businesses that have applied but are not yet compliant. The fund will also link spaza shops to bulk-buying groups, provide training, and improve business operations.

Eligible start-ups will receive R10,000 in initial funding, with an additional R40,000 for bulk stock purchases. A separate R100,000 financial package includes R50,000 for infrastructure upgrades to meet regulatory standards.

Ndabeni-Abrahams acknowledged the R500 million budget may not fully cover the industry’s needs but emphasized the importance of supporting deserving businesses.

Meanwhile, Gauteng MEC for Finance and Economic Development, Lebogang Maile, reported that 17,617 spaza shops and food-handling facilities have applied for registration, including 7,107 applications from foreign nationals. However, 15,478 businesses were found non-compliant, with 498 shut down immediately.

The initiative is part of a broader government effort to formalize and support township businesses while ensuring food safety and economic growth.