Major funding lifeline for township traders
To improve business sustainability and public health, spaza shop owners in Mogale City are encouraged to apply for the Spaza Shop Support Fund.
Local spaza shop owners are urged to apply for the R500m Spaza Shop Support Fund, a national initiative aimed at strengthening township convenience stores by providing funding, training, and business development support.
This is according to Mogale City Local Municipality (MCLM) communications officer, Refilwe Mahlangu.
She said a recent information session was held at Centenary Hall, where the city’s Local Economic Development Section and the West Rand District Municipality partnered with the Department of Small Business Development, the Department of Trade, Industry and Competition, the Small Enterprise Development Finance Agency (SEFA), and the National Empowerment Fund (NEF) to educate entrepreneurs on how to access the Spaza Shop Support Fund.
Key stakeholders who attended the session included Executive Mayor Lucky Sele, representatives from the South African Revenue Services (SARS), West Rand District Municipality representative Sivuyile Boyce and Gauteng Department of Economic Development Head Mpho Nawa.
“Launched by President Cyril Ramaphosa in November last year as part of the government’s response to the foodborne illness crisis, the fund supports spaza shops through financial assistance and training, with a strong emphasis on food safety, business sustainability and market competitiveness,” said Mahlangu.
She added that the support available will include:
• Stock purchases via approved partners
• Infrastructure upgrades (eg, fridges, shelves, security)
• Operational tools and systems
• Training: Point of Sale device use, business management, digital skills, food safety, and more
However, Mahlangu emphasised that people who qualify for this fund are South African citizens operating spaza shops in townships or rural areas.
“Shops must be registered with the local municipality. For funding above R80 000, registration with the Companies and Intellectual Property Commission and SARS is required. Shops must meet compliance standards and be owner-managed. Up to R100 000 in support is available for qualifying businesses,” Mahlangu continued.
The details for more information and applications on this fund are below:
• Contact 011 305 8080
• Visit the website www.spazashopfund.co.za
• In person: At your local municipality, NEF or SEFA office
