The national government intends to empower spaza shops through the Spaza Shop Support Fund (SSSF), stating that these local businesses have been playing an important role in almost every community in South Africa for years.
In April this year Parks Tau, Minister of Trade, Industry and Competition, and Stella Tembisa Ndabeni, Minister of Small Business Development, launched the R500 million fund in Gauteng.
In a statement issued by the Department of Small Business Development (DSBD) it confirmed that the fund is aimed at supporting South African-owned, community-based convenience shops, including spaza shops, through critical financial and non-financial contributions.
Spaza shop owners who wish to make use of the support offered by the SSSF can choose between three support packages. The packages are Stock/Grant (for the initial purchase of stock via delivery channel partners, a maximum of R40 000); assets and infrastructure/blended grant and loan (for the upgrading of building infrastructure, systems, refrigeration, shelving, security; maximum R50 000); and non-financial support/business-management training (training programmes will include point-of-sale devices, business skills, digital literacy, credit health, food safety, business compliance; maximum R10 000).
Part of the rationale behind the SSSF is that spaza-shop owners face a string of challenges such as competition from major retailers with greater purchasing power, food safety and compliance concerns, affecting consumer trust, and social and economic tensions arising from foreign-owned spaza shops dominating the market.
The SSSF aims to help spaza shops overcome such challenges as weak local ownership, food safety and compliance, job creation and economic growth. To be considered for any support spaza-shop owners must meet a list of criteria, including being 100% South African-owned, registered with their local municipality and registered with the South African Revenue Service.
A national campaign to inform spaza-shop owners is underway. Seraj Johaar, Drakenstein Municipality’s Executive Director for Corporate and Planning Services, said local spaza shop owners were informed on Wednesday 16 July at Paarl East Thusong Service Centre, by DM, Cape Winelands District Municipality, DTIC, DSBD, NEF and the Small Enterprise Development Agency (Seda).
For more information: www.spazashopfund.co.za.
