Township and rural spaza shop owners across South Africa have the opportunity to apply for financial support of up to R100 000 through a government-backed funding programme aimed at growing small businesses.
The Spaza Shop Support Fund, launched in 2025 by the Department of Small Business Development (DSBD), provides grants and loans to eligible food-handling outlets to help them improve operations, increase competitiveness and create jobs in their communities.
Qualifying businesses can receive funding to cover shop upgrades, business training and stock purchases. Amounts above R50 000 are provided as a blend, with 50% offered as a grant and 50% as a loan.
Who qualifies for the fund
To be eligible, spaza shop owners must be South African citizens or have been naturalised before 1994. The business must operate in a township or rural area and serve the local community.
Owners must also ensure their businesses are registered with the local municipality in line with relevant by-laws and licensing requirements. Registration with the South African Revenue Service (SARS) is required, although a six-month transitional period is available for applicants who qualify.
Compliance with food preparation, health and safety legislation is mandatory, and the owner must actively manage the business.
Documents needed to apply
Applicants need to prepare several documents before starting the online application. These include a certified copy of a South African identity document, business registration documents, proof of business address, proof that the outlet is operational, bank account confirmation documents and a business permit issued by the municipality.
Those seeking funding above R80 000 will also need to register with the Companies and Intellectual Property Commission (CIPC) within six months of receiving funding.
Application process
Applications can be submitted through the online portal at https://systemsnew.sefa.org.za/SMMEPortal/. Applicants should ensure all information provided is accurate and that supporting documents are uploaded correctly.
Once submitted, applications will be assessed according to programme requirements. Applicants may be contacted if additional information is needed during the assessment process.
The fund gives priority to young entrepreneurs between the ages of 18 and 35, women-owned businesses and businesses owned by people with disabilities.
More information is available at www.spazashopfund.co.za..
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