Government urges spaza shops to apply as R179.6 million approved for support

Government has approved R179.6 million to support South African owned spaza shops across all nine provinces, despite ongoing compliance challenges among applicants to the R500 million Spaza Shop Support Fund.

The fund, launched last year by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (the dtic), aims to increase the participation of South African-owned spaza shops in township and rural retail economies.

The Small Enterprise Development and Finance Agency (SEDFA) have approved 1,316 applications valued at R79.6 million, while the National Empowerment Fund (NEF) has approved 1,053 enterprises valued at R99.9 million. In total, 2,369 businesses have been approved for support through the Fund, which is implemented through SEDFA and the NEF.

“Since implementation, the Fund has continued to gain traction, reflecting the scale of demand for the fund. To date, 4,522 complete applications have been received nationally, of which 4,240 have been assessed,” Department of Small Business Development Director-General Thulisile Manzini said on recently at a media briefing in Pretoria.

However, Manzini said compliance remains a major obstacle. Only 58% of applicants are 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.

“As part of ensuring the integrity of the programme, site visits and verification processes have identified 354 applications that could not proceed due to non-compliance, including non-existent businesses, ownership discrepancies, and inconsistencies between applicants and operators,” she said.

Manzini stressed that qualifying applications that complete the process are fully supported.

“For applications that have completed the verification and compliance process and meet all programme requirements, approval rates remain at 100%, demonstrating government's commitment to supporting qualifying South African-owned spaza shops,” she said.

Approved support includes stock purchases, point-of-sale devices, infrastructure upgrades, inventory and other business improvements, as well as non-financial support to improve sustainability and competitiveness.

“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,” Manzini said.

She added that the Fund goes beyond funding, offering training and compliance assistance. A nationwide outreach and awareness campaign will resume from June 2026 to encourage more qualifying spaza shop owners to apply.

“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,” she said. 

HOW TO APPLY: 

South African-owned spaza shop owners are encouraged to apply online at www.spazashopfund.co.za or through the National Empowerment Fund at www.nefcorp.co.za/products services/spaza-shop-support-fund/. 

Applicants must ensure their businesses are compliant and have valid trading permits or licences.