Spaza shops ask for more than R32m worth of stock

Spaza shop owners across the country have submitted applications requesting more than R25 million worth of machinery and stock from the government, as part of efforts to revitalise the informal retail sector.

This comes after the launch of the R500 million Spaza Shop Support Fund by the Department of Small Business Development.

In a recent briefing, it was revealed that the Department of Small Business Development (DSBD) received more than 3 269 applications from spaza shop owners seeking support through the Spaza Shop Support Fund.

However, only 387 of these applications have been processed so far.

Most applications came from KwaZulu-Natal, with 142 submissions and the least from North West with eight.

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Funding requests

According to the presentation, spaza shop owners applied for a combined total of R32.4 million for machinery and stock.

Of this, machinery accounts for more than R16.4 million, while stock requests make up R16 million.

“The fund seeks to enhance food safety, improve competitiveness, and strengthen locally-owned spaza shops,” the department said.

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R52 million disbursed to partners

To ensure efficient delivery, three Distribution Channel Partners (DCPs) have been contracted and are working across various provinces.

According to the department, R52 million has already been disbursed to two of these partners to begin processing and distribution.

“The approach also provides bulk buying (wholesale network) opportunities that will propel the spaza shops to exploit economies of scale and enjoy competitive pricing and packaging,” it said.

Furthermore, geo-mapping and registrations of spaza shops have commenced, with 1 411 shops verified.

“Awareness workshops will be conducted in all provinces between 23 May and 1 July 2025, covering one district per province,” it said.

Online applications can be accessed on the Spaza Shop Fund website.

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