Small Business Development Minister Stella Ndabeni has announced the creation of a R500m Spaza Shop Support Fund that aims to enhance market competitiveness to help spaza shops and food handling outlets compete with larger retailers.

Addressing media in Pretoria yesterday, the minister said the fund will be launched soon and will support township convenience shops, including spaza stores.

“The fund will be launched in the next two weeks and a date will be communicated,” she said, adding that the fund will comprise funds from the Department of Small Business Development (R150m) and the Department of Trade, Industry and Competition (R350m).

The minister made the announcement at the briefing that followed the close of the registration period for spaza shops and food-handling businesses to register their businesses with their local municipalities on February 28.

She said other businesses will still benefit from existing departmental funds and programmes, including financial assistance by the Small Enterprise Development and Finance Agency (SEDFA) and other development finance institutions.

The fund aims to achieve economies of scale by linking spaza shops and food handling outlets to buying groups for bulk purchasing; build business capacity through training and support to improve shop operations; and enhance market competitiveness to help spaza shops and food- handling outlets compete with larger retailers.

“We are planning a to roll out a multi-disciplinary outreach programme. The purpose of the outreach programme is to bring government services closer to the people through disseminating information on community convenience shops and support offerings.

“We will continue to do these things with provincial and local government and will facilitate awareness campaigns in all 52 districts and metros across the country. The awareness campaigns are scheduled to take place from today to March 30.”

The awareness campaigns will continue beyond March and the awareness workshops will be facilitated by district champions, SEDFA and business regulation officers.

She said that the Department of Small Business Development has recruited 61 business regulation officers on six-month contracts, each assigned to a district or metro across the country.

“These officers will be responsible for conducting awareness campaigns, research, and geo-mapping of spaza shops and food-handling facilities among other functions.”

Streamlining the regulatory environment

The minister further added that the country’s regulatory environment needs to be streamlined, and the department has embarked on a Red Tape Reduction Programme to include practical solutions.

“As a key strategic intervention to support the red tape reduction efforts, the department will ensure that municipalities are assisted with e-registration systems. We remain committed as government to streamline business licensing in South Africa, reduce regulatory burdens and foster an environment conducive to entrepreneurship, innovation and job creation.

“Our amended National Business Licensing Bill, once approved and implemented, will provide clarity, consistency and transparency in business licensing, enabling businesses to thrive and contribute to the country’s economic growth and development,” she explained. – SAnews.gov.za

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