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Only a fraction of the fund has reached township and rural spaza shop traders as verification delays slow disbursements
Picture: iStock
The department of small business development has so far disbursed R6 million from the R500 million Spaza Shop Support Fund (SSSF).
This is aimed at supporting South African-owned spaza shops and food-handling outlets in townships and rural areas.
Launched last month, the fund is designed to provide financial assistance of up to R300 000 per shop through a mix of grants and low-interest loans.
However, according to small business development minister Stella Ndabeni, on Thursday, the implementation has been slower than expected.
“This is moving at a slow pace due to all the parties that are involved in coordinating the work, which includes inspections and verification of citizenship, as well as site and health inspections,” she said.
Focus on compliance and sustainability
To qualify for funding, shop owners had to register for an operating permit before the deadline.
The money can be used for stock purchases, infrastructure improvements, business development tools and the adoption of point of sale (POS) systems.
“The fund will assist shop owners that met the deadline for the registration of an operating permit,” Ndabeni said.
The initiative is administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA) and includes support to help businesses meet hygiene and regulatory standards.
ALSO READ: Illegal spaza shops ‘still proliferate’ despite warnings
Global SME Summit set for July
The Minister also announced that South Africa will host the first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting in Johannesburg from 22 to 24 July 2025.
The event, co-organised with the United Nations Small Business Agency, will see participation from nearly 50 countries, including Brazil, Kenya, India and Switzerland.
“We are steadfast in our commitment to create a more enabling legislative and policy environment that empowers small businesses to grow, scale up and compete on the global stage,” said Ndabeni.
She said the meeting would help shape global small business policy and push for the formation of a dedicated MSME Working Group under the G20 during South Africa’s presidency.
“We do not want a talk shop. We will emerge with practical initiatives that strengthen the global MSME support eco-system,” she added.
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