Government has called on eligible South African spaza shop owners in townships and rural areas who want to improve, expand, and sustain their shops to apply for assistance with the R500m Spaza Shop Support Fund (SSSF).
This as government officially opened applications for the fund aimed at increasing the participation of South African owned spaza shops in the townships and rural areas retail trade sector.
What the support fund seeks to achieve:
- It provides funding, training, business skills development, and technical support to help businesses compete effectively against larger retailers.
- Offers funding of up to R300,000 per shop through a combination of grants and low-interest loans.
- Assists shop owners in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products.
- Encourage the adoption of digital payment systems, inventory management tools, and financial literacy programs to improve operational efficiency.
- Facilitate wholesale aggregation, allowing spaza shops to access bulk purchasing advantages and competitive pricing.
What you need to qualify:
- The owner of the spaza shop must be a South African citizen or naturalised as a South African citizen prior to 1994.
- Spaza shops must operate within South Africa in rural and township areas and serve local communities.
- The spaza shop must be registered with the local municipality in accordance with the relevant by-laws and business licensing requirements.
- Registration with the Companies and Intellectual Property Commission (CIPC) will be optional based on the enterprise’s funding requirement. For enterprises receiving funding above R80,000 registration with CIPC will be required within a period of 6 months.
- The business must have a valid registration with the South African Revenue Service (SARS) or alternatively be allowed a six-month transitional period.
- The spaza shop must comply with all other relevant legislative and registration requirements necessary for its operation. (e.g. food preparation and health and safety standards)
- The owner must actively manage the spaza shop.
- Funding will prioritise entrepreneurs aged 18-35; female-owned spaza shops will receive priority consideration and businesses owned by individuals with disabilities will be given priority.
What does the support package for funding of up to R100,000 entail:
- It includes a stock (grant) of a maximum of R40,000 for the initial purchase of stock via delivery channel partners.
- Assets and infrastructure (blended grant and loan): a maximum R50,000 for the upgrading of building infrastructure, systems, refrigeration, shelving and security.
- A maximum of R100,000 for training programmes that will include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance.
What does the support package for funding of above R100,000 up to R300,000 for registered and compliant entities entail:
- It includes a stock (grant) of a maximum of R40,000 for the initial purchase of stock via delivery channel partners.
- A maximum of R250,000 for a funding split, 50% of the funding will be provided as a grant, and 50% will be provided as a free-interest loan.
- A maximum of R100,000 for training programmes that will include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance.
- The fund will be jointly administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA).
- In order to access the funding, applicants need to apply to the NEF and SEDFA through the prescribed application process outlined on the relevant institution's website.
The following websites can be used to apply for funding:
The contact details for the Spaza Shop Support Fund Call Centre are 011 305 8080 or via email: Spazafund@nefcorp.co.za
Contact details for the NEF Call Centre are 0861 843633, SEDFA Call Centre 012 748 9600 or an email can be sent to helpline@sefa.org.za.
Working hours: Mon – Fri: 9 am–10 pm; Sat: 9 am–3 pm; and Sunday: closed.
