Durban Spaza Shop Owner Gets R40,000 Boost Through Government Fund

Ngobese recently received a wide range of essential products, including flour, rice, cool drinks, chips and eggs, through the R500 million Spaza Shop Support Fund.

A Durban township entrepreneur is celebrating a major step forward after receiving R40,000 worth of stock through the government's Spaza Shop Support Fund, a programme designed to strengthen South African-owned township and rural retailers. For Nkanyiso Eric Ngobese, who runs a spaza shop in Umlazi K Section, the support means more than fuller shelves. It gives his business room to grow, improve cash flow and create more employment opportunities in his community.

Ngobese recently received a wide range of essential products, including flour, rice, cool drinks, chips and eggs, through the R500 million Spaza Shop Support Fund. He described the delivery as a milestone, saying he never imagined owning stock valued at R40,000 at one time. The additional inventory is expected to keep his shop supplied for about six weeks, allowing him to serve customers consistently while generating income to reinvest in the business. The support comes at a crucial time for many township retailers that often struggle to secure enough capital to maintain stock levels.

Meeting requirements opened the door

Ngobese learned about the programme through EasyPay before completing his application with Stop-to-Shop. He submitted the required documents, including his identity document and proof of residence, before beginning the municipal compliance process.

To obtain a trading permit from the eThekwini Municipality, he secured a supporting letter from his ward councillor, while his business premises were inspected to ensure they met trading requirements. After six months, he received his permit and became eligible for support. His experience highlights the importance of meeting licensing and regulatory requirements, which remain one of the biggest challenges facing many applicants.

Growing businesses and creating jobs

Ngobese currently employs four people and believes the additional stock will help expand his business further. As customer demand increases, he hopes to hire more staff and create additional employment opportunities within the community.

His shop operates from 6:30am until 9pm, reflecting the long working hours often required to run a successful township retail business.

He encourages fellow entrepreneurs to stay committed to their businesses, protect them and continue working towards growth, saying persistence can eventually open the door to opportunities such as government funding.

Fund continues supporting township retailers

Launched in 2025, the Spaza Shop Support Fund provides qualifying businesses with funding of up to R100,000 through a combination of grants and low-interest loans. The programme covers stock purchases, infrastructure improvements, business development support, point-of-sale systems and assistance with meeting hygiene and regulatory standards.

According to the Department of Small Business Development, R179.6 million had been approved by May for 2,369 South African-owned spaza shops. The Small Enterprise Development and Finance Agency (SEDFA) approved 1,316 applications worth R79.6 million, while the National Empowerment Fund approved 1,053 businesses valued at R99.9 million.

The department said compliance remains a challenge, with only 58% of applicants linked to valid business licences or temporary municipal permits.

Business owners seeking more information can visit www.spazashopfund.co.za or submit applications through the programme's online portal.