R500m Spaza Shop Funding: How to Apply

Government has disbursed R6 million of the R500 million allocated through the Spaza Shop Support Fund (SSSF) to eligible spaza shops and other food-handling outlets.

The fund, aimed at increasing the participation of South African-owned spaza shops in township and rural retail trade, was launched in May.

“This is progressing at a slow pace due to the number of parties involved in coordinating the work, including inspections, verification of citizenship, and site and health inspections,” Minister of Small Business Development Stella Tembisa Ndabeni said during a recent media briefing in Pretoria.

“The fund will assist shop owners who met the deadline for the registration of an operating permit.”

The scheme offers funding of up to R300,000 per shop through a combination of grants and low-interest loans.

Additionally, it provides dedicated funding for initial stock purchases, infrastructure improvements, business development tools, and the adoption of Point of Sale (POS) systems.

The fund is being administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA).

Through the scheme, shop owners will receive assistance to meet hygiene and regulatory standards, ensuring the provision of safe, high-quality products. 

Qualifying criteria:
Each application will be assessed according to the following:
 

• The spaza shop or store must be owner-managed and operated.
• The owner must have a valid South African identity document.
• They must register with the SMMESA (https://www.smmesa.gov.za).
• Owners must hold a valid trading licence or municipal permit. If not, they must obtain one before accessing support.
• A valid and original municipal trading licence/permit or business licence is required for general dealers. Photocopies will not be accepted, and licences must be issued by a municipality, not a councillor.
• Eligible shop or general dealer owners must register with the Companies and Intellectual Property Commission (CIPC), the South African Revenue Service (SARS), and the Unemployment Insurance Fund (UIF), if not already registered.

How to apply for the scheme:
 

• The spaza shop, general dealer, or grocery store owner must visit their nearest SEFDA office to submit the required permits and identity document in person, or submit them online.
• SEFDA will assist with compliance registration and due diligence.
• The owner will complete an application form, which will be submitted to the DSBD for approval.
• If approved, the owner will be instructed to collect their bank card from an appointed bank.
• Clients can also apply directly to SEFDA by completing an application form and submitting it, with all supporting documents, to spaza@sefa.org.za 

For more information about the SSSF, visit www.spazashopfund.co.za, call 011 305 8080 or email spazasupport@dsbd.gov.za