Pretoria: The South African government has approved R179.6 million from the Spaza Shop Support Fund to support shop owners across all nine provinces, despite challenges in compliance among applicants to the R500 million fund.
According to South African Government News Agency, the fund was launched last year by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (the dtic) to increase the participation of South African-owned spaza shops in the townships and rural retail trade sector. The Small Enterprise Development and Finance Agency (SEDFA) has approved 1,316 applications valued at R79.6 million, while the National Empowerment Fund has approved 1,053 enterprises valued at R99.9 million.
The programme is being implemented by SEDFA and the National Empowerment Fund (NEF). Thulisile Manzini, Director-General of the Department of Small Business Development, highlighted in a media briefing in Pretoria that the fund has received 4,522 complete applications nationally, with 4,240 assessed. However, a key constraint is that only 58% of applicants have valid business licenses or temporary permits from municipalities.
Manzini noted that many applications cannot progress due to unresolved licensing and compliance requirements. Site visits and verification processes identified 354 applications that could not proceed due to non-compliance, such as non-existent businesses and ownership discrepancies. A total of 2,369 businesses have been approved for support through the fund.
Approved support includes stock purchases, point-of-sale devices, infrastructure upgrades, inventory support, business improvements, and non-financial business development support. The fund aims to improve sustainability and competitiveness in the township and rural retail sector.
The fund also aligns with government transformation objectives, with 43% of approved enterprises being women-owned, 18% youth-owned, and 2% owned by persons with disabilities. This support broadens economic participation and inclusion within township and rural economies.
Beyond financial support, the fund offers long-term sustainability assistance through SEDFA and NEF, providing targeted business development support, including training and compliance assistance in areas like financial management, digital literacy, and regulatory compliance.
The implementing agencies plan a nationwide outreach and awareness programme in June 2026 to encourage more qualifying spaza shop owners to apply and assist with compliance support. The Spaza Shop Support Fund is part of the government's broader commitment to strengthening township economies, supporting informal businesses, creating jobs, and expanding economic participation in local communities.
Manzini emphasized that the fund supports South African-owned spaza shops, with strict verification measures in place to prevent fronting and abuse.