SA Launches R500 Million Fund to Support Township and Rural Spaza Shops

Applications are now open for eligible shop owners seeking to expand, modernise, and sustain their businesses in an increasingly competitive market environment.

In a bold move to strengthen small-scale retail businesses in South Africa’s townships and rural areas, the government has launched the R500 million Spaza Shop Support Fund (SSSF). This initiative aims to revitalise and empower South African-owned spaza shops by providing them with financial assistance, business development training, and tools to operate competitively within the broader retail sector.

Applications are now open for eligible shop owners seeking to expand, modernise, and sustain their businesses in an increasingly competitive market environment.

Purpose of the Spaza Shop Support Fund

The SSSF is designed to uplift small township and rural retail businesses, especially those that are South African-owned, by offering a combination of grants, interest-free loans, and extensive support services. The government hopes this programme will level the playing field between spaza shop owners and larger retail chains operating in these communities.

The fund aims to:

• Offer financial support up to R300 000 per shop, depending on compliance and registration status.

• Provide business training, digital literacy, and technical assistance.

• Support spaza shop owners in meeting regulatory and hygiene standards.

• Encourage the adoption of digital payment systems, inventory management tools, and financial literacy programs.

• Enable bulk purchasing through wholesale aggregation, helping shop owners access better prices and products.

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Eligibility Criteria

To qualify for funding under the SSSF, applicants must meet the following requirements:

• The spaza shop owner must be a South African citizen or a naturalised citizen before 1994.

• The business must be located in township or rural areas and actively serve the local community.

• Shops must be registered with the local municipality in accordance with relevant by-laws and business licensing standards.

• While CIPC registration is optional for businesses applying for under R80 000, it becomes mandatory within 6 months for those applying for more than R80 000.

• The business must be SARS compliant, or be granted a six-month transitional window to register.

• The business must meet all relevant food safety and operational regulations.

• The shop owner must be actively managing the business.

• Priority will be given to young entrepreneurs (18–35), women-owned businesses, and owners living with disabilities.

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Funding Packages and What They Include

There are two main funding tiers based on the shop’s compliance and registration status:

1. Funding Package of up to R100 000:

This package is suitable for spaza shops that are operational but may not yet be fully compliant with CIPC or SARS. It includes:

• Stock Grant: Up to R40 000 worth of inventory through verified delivery partners.

• Assets and Infrastructure Support: A blended grant and loan of up to R50 000 for infrastructure improvements such as refrigeration, security, point-of-sale systems, and shelving.

• Training Programmes: Up to R100 000 for training in business compliance, digital literacy, food safety, and credit management.

2. Funding Package of R100 000 – R300 000:

This package targets registered and compliant businesses. It includes:

• Stock Grant: Again, up to R40 000.

• Blended Funding: Up to R250 000, with 50% provided as a grant and the other 50% as an interest-free loan.

• Skills Development: Up to R100 000 for training in advanced digital tools, credit health, point-of-sale technology, and hygiene standards.

Application Process

To access funding, applicants are required to submit applications through the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA) platforms.

Steps to apply:

1. Visit the relevant websites:

   • Spaza Shop Support Fund: www.spazashopfund.co.za

   • NEF: www.nefcorp.co.za

   • SEFDA: https://systems.sefa.org.za/SMMEPortal/

2. Create an account on the SEFDA Portal: https://systemsnew.sefa.org.za/SMMEPortal/

3. Fill in all the required registration details.

4. Accept the terms and conditions.

5. Submit your application along with all necessary documentation.

Contact Information for Assistance

For more information or assistance with applications, the following contact details are available:

• Spaza Shop Support Fund Call Centre: 011 305 8080 Email: Spazafund@nefcorp.co.za

• NEF Call Centre: 0861 843 633

• SEFDA Call Centre: 012 748 9600 Email: helpline@sefa.org.za

Operating Hours:

• Monday to Friday: 9:00 AM – 10:00 PM

• Saturday: 9:00 AM – 3:00 PM

• Sunday: Closed

A Step Toward Economic Empowerment

By launching the Spaza Shop Support Fund, the government is making a strategic investment in the informal economy, which forms the backbone of many township and rural communities. This initiative is not only about funding but also about equipping spaza shop owners with the skills, tools, and systems needed to thrive in a digital and competitive retail environment.

Shop owners are encouraged to act quickly and apply while funds are available. This is a unique opportunity to take their businesses to the next level—from survival to sustainable growth.