Funding opportunity for spaza shops across SA
Spaza shop owners can now apply for funding to grow their businesses through the government Spaza Shop Support Fund.
LIMPOPO – The government has opened applications for the Spaza Shop Support Fund (SSSF), creating an opportunity for South Africans, particularly youth and women, to access funding to grow their small businesses.
The initiative is led by the National Empowerment Fund (NEF) and the Small Enterprise Development Agency (SEFA), in partnership with the Department of Trade, Industry and Competition (DTIC) and the Department of Small Business Development (DSBD). It aims to provide both financial and non-financial support to help spaza shops become more competitive, compliant, and sustainable.
The fund is open to all South African citizens, including those over the age of 35, who own registered spaza shops and have a desire to expand.
To qualify, businesses must operate in rural areas, villages, or townships, and must be registered with the local municipality. Enterprises applying for more than R80 000 in support are required to be registered with the Companies and Intellectual Property Commission (CIPC).
In addition, applicants must be registered with the South African Revenue Service (SARS), though those who are not yet compliant will be given a six-month grace period. Spaza shops are also required to meet all legislative standards, including food preparation, health, and safety regulations.
Local entrepreneur and medical doctor, Dr Mikia Ramothwala, who owns Ramothwala Spaza in Bochabelo village in the Greater Letaba Municipality, welcomed the programme as a much-needed intervention.
“This is a great step by the government to empower locals economically,” he said. “Our country is facing high unemployment, and spaza shops keep money circulating within our townships.”
Ramothwala has been outspoken about the importance of ensuring that spaza shops are run by South Africans, arguing that it is necessary to reclaim and protect the rural economy.
“My view is not xenophobic, but realistic,” he explained. “Other African countries, such as Tanzania, have restricted foreigners from operating small-scale businesses to protect their economies. We should do the same if we want to empower South Africans.”
He added that he started his spaza shop to create opportunities for his unemployed relatives and community members.
Recently, his business passed a health and safety inspection, an achievement that he says makes him proud to serve his community as a local entrepreneur.
