Spaza shop owners looking to grow their businesses can apply for support through the Spaza Shop Support Fund. Launched in 2025 by the Department of Small Business Development (DSBD), the fund is aimed at supporting eligible spaza shops and other food-handling outlets across South Africa. The programme seeks to help township and rural enterprises improve their operations, increase their competitiveness, create jobs and contribute to local economic development.
The fund offers qualifying businesses funding of up to R100 000. Funding above R50 000 is provided as a blend of 50% grant and 50% loan. The financial support can be used for shop upgrades, business training and stock purchases.
Business owners who would like to access the funding are encouraged to follow these steps:
Step 1: Check if your business qualifies
Before applying, visit the fund's website and review the eligibility requirements to ensure that your business qualifies for support.
To qualify, the spaza shop owner must be a South African citizen or have been naturalised as a South African citizen before 1994. The business must operate in a township or rural area and serve the local community.
The business must also be registered with the local municipality in line with relevant by-laws and licensing requirements. In addition, applicants must be registered with the South African Revenue Service (SARS) or qualify for a six-month transitional period.
Spaza shops must comply with all relevant legislation, including food preparation, health and safety requirements. The owner must actively manage the business.
Step 2: Gather the required documents
Applicants should prepare all the necessary supporting documents before starting the online application process. These include:
- A certified copy of a South African identity document.
- Business registration documents.
- Proof of business address.
- Proof that the spaza shop or food-handling outlet is operational.
- Bank account confirmation documents.
- A business permit issued by the municipality.
Applicants seeking funding above R80 000 will also be required to register with the Companies and Intellectual Property Commission (CIPC) within six months of receiving funding.
Step 3: Submit your application online
Once all the required information and documents have been gathered, applicants can submit their applications through the online portal at https://systemsnew.sefa.org.za/SMMEPortal/
Applicants should ensure that all information provided is accurate and that supporting documents are uploaded correctly.
Step 4: Await assessment
Applications will be assessed according to the programme requirements. Applicants may be contacted if additional information is needed during the assessment process.
Priority groups
The fund gives priority consideration to young entrepreneurs between the ages of 18 and 35, women-owned businesses and businesses owned by people with disabilities.
This information was supplied by the Spaza Shop Support Fund: www.spazashopfund.co.za
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