Spaza shop entrepreneurs given hope with R500m

he Spaza Shop Fund Awareness Roadshow, attended by more than 300 local spaza shop owners, highlighted the need for government to ensure that more young people get assistance to become successful entrepreneurs.

The workshop was hosted by the Department of Trade, Industry and Competition (DTIC), in partnership with the Department of Small Business Development at the Ehlanzeni District Municipality’s Disaster Management Centre on June 10.

R500m in funding has been made available to support South African-owned township community convenience shops, including spaza shops.
Young entrepreneurs in the province have pinned their hopes on the government’s initiative, believing that it will help them grow better businesses and create employment opportunities for their peers and communities.

A Pienaar convenience shop owner, Nomawethu Maseko, said she is looking forward to applying for the funding to expand her business. She supplies still water to the local community.

“We’ve learnt that government will be prioritising young people to benefit from this fund. This is an intervention through which government can assist young entrepreneurs like us to change the lives of many people for the better,” said Maseko.

According to the minister of of the DTIC, Parks Tau, government is taking a concrete step to formalise and empower the informal sector through this fund.

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He said supporting spaza shops would be enabling entrepreneurs, often women and young people, to participate fully in the economic process.

“These small businesses generate employment, drive local commerce and channel much-needed income into communities that have long been underserved. Studies show that small businesses account for a significant portion of job creation in South Africa. By providing spaza shop owners with financial support, infrastructure upgrades and essential business training, we are setting the stage for sustainable job creation,” said Tau.

The fund also provides various types of support, including the initial purchase of stock via delivery channel partners, upgrading of building infrastructure, refrigeration, shelving and security.

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Training programmes offered include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance.

The fund seeks to bolster the broader supply chain by fostering partnerships with local manufacturers, black industrialists and wholesalers.

Through bulk purchasing arrangements and the promotion of locally produced goods, spaza shops will benefit from reduced costs and improved access to quality products.