The South African government is taking a bold step to revitalise township and rural economies with the official launch of the R500 million Spaza Shop Support Fund. The launch event will be led by Minister of Trade, Industry and Competition, Mr Parks Tau, and Minister of Small Business Development, Ms Stella Tembisa Ndabeni, at Eyethu Shopping Centre, Mofolo Central, Soweto, starting at 11:30 AM.
What is the Spaza Shop Support Fund?
Announced by President Cyril Ramaphosa in November 2024, the fund is a strategic initiative to provide financial and non-financial support to small, township-based businesses—particularly spaza shops and community convenience stores.
Jointly managed by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA), the fund is designed to:
- Increase participation of South African-owned spaza shops in the township and rural retail trade sectors.
- Provide access to working capital and infrastructure improvements.
- Offer business development support and training.
Key Benefits for Township Businesses
The Spaza Shop Support Fund offers a comprehensive support package, including:
- Initial stock purchases through verified delivery channel partners.
- Shop upgrades, including refrigeration, shelving, security, and digital point-of-sale systems.
- Business skills training covering digital literacy, compliance, credit health, food safety, and operational systems.
According to Minister Ndabeni, “This fund marks a major milestone in our commitment to uplift rural and township economies by equipping small businesses with the tools and resources needed to thrive. These enterprises play a vital role in job creation, poverty alleviation, and economic development.”
Driving Economic Inclusion and Local Manufacturing
Minister Parks Tau highlighted the broader impact of the initiative, stating, “This fund is not just about empowering individual spaza shop owners. It’s part of a larger effort to formalise the informal economy, safeguard consumers, and promote local manufacturing and production.”
The initiative also aims to strengthen the supply chain by fostering relationships with black industrialists, local manufacturers, and wholesalers. Through bulk buying arrangements and a focus on locally produced goods, participating spaza shops can reduce costs and improve product quality.
A Holistic Approach to Township Revitalisation
This government-backed support fund reflects a holistic approach to economic transformation, with a strong focus on inclusive growth, job creation, and the formalisation of informal businesses in underserved areas.
With the application process now open, eligible business owners are encouraged to take advantage of the fund and become part of South Africa’s growing local economic ecosystem.
