Relief for spaza shops and general dealers

Written by Silusapho Nyanda

Registered spaza shops and general dealers that have been affected by the coronavirus (COVID-19) will be assisted with funding from the Department of Small Business Development (DSBD). 

Funding of R7 000, per spaza shop or general dealer, will be provided by the DSBD, which has partnered with Nedbank to facilitate the Spaza Shops and General Dealers Support Scheme. The scheme forms part of the Small Enterprise Finance Agency’s Khula Credit Guarantee Scheme.

According to Minister of Small Business Development Khumbudzo Ntshavheni the, department has received 104 applications to date, of which 88 have been approved for funding.

The Minister explained that each spaza shop and general dealer will receive a working capital investment of R3 500. The other R3 500 will be issued in the form of revolving credit, which can be used at pre-selected wholesalers.  

“If the spaza shop or general dealer owner chooses to get the full R7 000 as revolving credit, they can do so,” the Minister says.

To apply for support under the scheme, the spaza shop or general dealer must meet the following requirements:

• The owner must be a South African citizen, with a valid South African ID.
• The owner must hold a valid trading permit, even if it is a temporary one.
• A business license is required in the case of a general dealer.
• The trading permit and business licence must be submitted as original documents. Only permits or licenses issued by the municipality are valid.

If a business owner meets the requirements, they can apply by visiting their nearest Nedbank branch or Nedbank desk, which are located inside Boxer stores nationwide. 

If a spaza shop or general dealer is not yet registered, qualifying owners must be willing to accept assistance to register with the Companies and Intellectual Property Commission, South African Revenue Service and the Unemployment Insurance Fund. Nedbank will also register owners on the SMMESA database.

In addition, owners must:

• Buy products on the DSBD’s approved goods list, which will change from time to time.
• Open a business banking account.
• Be part of the Small Enterprise Development Agency’s business management support programme, which will assist them with inventory management and stock control, management and annual financial statements.
• Uphold Environmental Health and Food Safety Standards and guidelines from the Department of Health (DOH), including sanitising surfaces and equipment before and after serving a customer; disinfecting service counters; maintaining social distancing between customers and service points; and not selling counterfeit, stale or expired foods.
• Not use their trading spaces as sleeping quarters.  

For more information about the scheme and how to apply for assistance, contact 0860 663 7867 or email spazasupport@dsbd.gov.za.