Funding of R22 million available for spaza shops
The MEC Siboniso Duma said spaza shop owners, supermarkets and general dealers in KZN who are strictly South Africans can apply for grants in the form of trading stock to the value of R20 000.
The KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) in collaboration with Ithala SOC Limited and Ithala Development Finance Corporation (IDFC) is calling on all spaza shop owners, supermarkets and general dealers to apply for financial assistance.
KZN EDTEA MEC Siboniso Duma said towards the end of 2023, they announced their intention to embark on an entrepreneurship revolution focusing on spaza shops in rural areas and townships.
Duma said spaza shop owners, supermarkets and general dealers in KZN who are South African citizens can apply for grants in the form of trading stock to the value of R20 000, and that a total of R10 million has been set aside for this purpose.
He said they are targeting 500 spaza shops across the province.
He added that they also offer a soft loan of up to R100 000 at 2% interest if it is a co-operative and 4% fixed interest for a Close Corporation/Pty Ltd.
He said a total of about R11.9 million has been set aside for this purpose through the Zimele Fund.
“Applications will run indefinitely. The turn-around time for processing of applications and responses will be two weeks. Spaza shop owners have long complained about being forced out of the market because they lack the buying power. Their competitors, who are mostly foreigners, buy in bulk which gives them a competitive edge. We have reconfigured the Bulk Buying Warehouse in KwaSithebe, Mandeni at a cost of more than R15 million. We have added a call centre and an online ordering system. The first bulk purchase stock for spaza shops, supermarkets and general dealers is valued at R10 million. In addition, we have 17 trucks available to move the stock across the province,” he said.
He added this is to create direct access of stock, reduce cost of goods and further make them accessible within local municipalities, saying that as a permanent arrangement, they are identifying buildings that are owned by Ithala across the province to be used as warehouses.
Duma said the closing date for applications is March 16, saying that successful applications will be announced on April 15.
Applications can be sent via WhatsApp to 072 522 0897 or call 031 319 5500. Alternatively email zimeletradersfund@kznedtea.gov.za or visit: www.kznbulk-buying.co.za
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