Reclaiming the spaza shop economy: South Africans encouraged to access R500 million fund
South African spaza shop owners have been urged to take advantage of the R500 million Spaza Shop Fund which is designed to support informal retail businesses with essential financial and non-financial resources.
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South Africans are being urged to reclaim the township and rural spaza shop economy by taking advantage of the R500 million Spaza Shop Fund, which aims to revitalise informal retail businesses through financial and non-financial support.
This call was made by Siziwe Zulu, the Spaza Shop Project Manager at the National Empowerment Fund (NEF), during a community outreach session held at the Taung Depot Hall in the North West. The event formed part of a national campaign to educate spaza shop owners on accessing government support through the initiative.
“We encourage those who have not registered to contact us as we can assist them through non-financial support in preparation for other spaza funding programs,” said Zulu. “The main aim is to provide spaza owners with an opportunity to learn more about applying for the fund and which requirements they will be expected to comply with.”
The Spaza Shop Fund, managed through a partnership between the Department of Trade, Industry and Competition (the dtic), the Department of Small Business Development (DSBD), the NEF, and the Small Enterprise Development Finance Agency (SEFA), allocates R100 000 per applicant. This support package is a blend of grant and loan, coupled with capacity-building opportunities such as technical training, business refurbishment assistance, and regulatory compliance guidance.
Zulu emphasised the fund's broader goal: to empower South Africans and restore ownership of the spaza shop sector to local hands.
“The fund’s goal is to reposition township spaza stores as competitive and sustainable businesses that can generate jobs, support local suppliers, and contribute to the overall economy,” she said. “To make this happen, we encourage you to apply for and get support with business refurbishment and wholesale aggregation.”
She further urged spaza shop owners and aspirant entrepreneurs to seize this opportunity to take back control of an industry that has historically belonged to them.
“We urge South Africans to take back the economic power that they have held through Spaza Shops,” Zulu said.
The educational awareness campaign is being rolled out nationwide, providing critical information to help informal retailers formalise their businesses and grow within the mainstream economy.