SAgovnews

Government ramps up support to help spaza shops access R500 million fund

Government ramps up support to help spaza shops access R500 million fund Government is stepping up efforts to help thousands of spaza shop owners formalise their businesses, meet compliance requirements and access financial support through the R500 million Spaza Shop Support Fund, as part of a broader drive to strengthen township and rural economies. The Department of Small Business Development (DSBD), in partnership with the South African Local Government Association (SALGA), is finalising a nationwide process aimed at assisting small and informal businesses with registration and compliance requirements. The initiative seeks to address one of the biggest barriers facing informal businesses by helping entrepreneurs meet the requirements needed to access government support and participate more fully in the formal economy. As part of this intervention, government will once again roll out a nationwide outreach and awareness campaign from June 2026 to encourage more qualifying spaza shop owners to apply for the fund. The campaign is expected to provide practical guidance to business owners on meeting application requirements, improving compliance and accessing funding opportunities to grow and sustain their enterprises. The support fund forms part of government's commitment to increasing the participation of South African-owned spaza shops in the township and rural retail sector, while helping businesses improve competitiveness, create jobs and contribute to local economic development. The fund was launched last year by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (the dtic). It is being implemented through the Small Enterprise Development and Finance Agency (SEDFA) and the National Empowerment Fund (NEF). To date, 4,522 complete applications have been received nationally, of which 4,240 have been assessed. “The assessment process continues to highlight a key structural constraint within the sector, with only 58% of applicants linked to valid business licences or temporary permits issued by municipalities. “As a result, a significant number of applications remain unable to progress until licensing and compliance requirements have been addressed,” a joint statement by the Department of Small Business and the dtic said. Despite these compliance challenges, the fund has continued to gain momentum, reflecting strong demand from entrepreneurs seeking support to expand and formalise their businesses. The Spaza Shop Support Fund forms part of government’s broader commitment to strengthening township economies, supporting informal businesses, creating employment opportunities and expanding economic participation within local communities. Through targeted support for women, young entrepreneurs and other designated groups, the fund contributes to building a more inclusive and representative economy while advancing the objectives of economic transformation and localisation. To date, 2,369 businesses have been approved for support through the fund. SEDFA has approved 1,316 applications valued at R79.6 million, while the National Empowerment Fund has approved 1,053 enterprises worth R99.9 million. Collectively, the two implementing agencies have approved support to the value of approximately R179.6 million across all nine provinces. The approved support includes stock purchases, point-of-sale devices, infrastructure upgrades, inventory support, business improvements and non-financial business development support aimed at improving sustainability and competitiveness within the township and rural retail sector. “Beyond financial support, the Fund is designed to drive long-term sustainability. SEDFA and the NEF continue to provide targeted business development support, including training and compliance assistance. “This covers areas such as business and financial management, point-of-sale systems training, digital literacy, credit management, regulatory compliance, and business formalisation support,” the departments said. The fund has also contributed meaningfully towards government's transformation objectives, with 43% of approved enterprises being women-owned businesses, 18% youth-owned businesses and 2% businesses owned by persons with disabilities. This demonstrates the fund's contribution towards broadening economic participation and supporting greater inclusion within township and rural economies. - SAnews.gov.za nosihle Mon, 06/08/2026 - 11:09 0