Government launches Spaza Shop Support Funding of R500-million
The fund will provide critical financial and non-financial support to township businesses, including community convenience stores and spaza shops.
The SA government news agency announced on March 3 that Trade Industry and Competition Minister Parks Tau and Minister of Small Business Development Stella Tembisa Ndabeni will launch the R500m Spaza Shop Support Fund next Tuesday.
President Cyril Ramaphosa first announced the initiative last November.
The fund aims to support SA-owned township community convenience shops, including spazas, to increase their participation in the townships and rural areas’ retail trade sector.
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Ndabeni said, “Government recognises the important role those small businesses, including those operating in the rural areas and townships, can play in creating jobs, growing our economy and alleviating poverty.”
The fund provides various support, including the initial purchase of stock via delivery channel partners, upgrading of building infrastructure, systems, refrigeration, shelving, security, and training programmes, which include point of sale devices, business skills, digital literacy, credit health and more.
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Tau said the fund would support economic inclusion and align with national priorities to formalise informal sectors, safeguard consumers and promote local production.
“Through bulk purchasing arrangements and the promotion of locally produced goods, spaza shops will benefit from reduced costs and increased access to quality products,” said Tau
