The Department of Small Business Development Director-General Thulisile Manzini said the fund continues to attract strong interest, with 4,522 complete applications received nationwide and 4,240 already assessed. Image: Supplied.
Government
1Min
South Africa
Government approves R179.6 million for spaza shops
More than 2,300 South African-owned spaza shops have been approved for support under the R500 million Spaza Shop Support Fund, with government allocating R179.6 million so far. However, compliance challenges, including licensing and verification issues, continue to prevent many applicants from accessing the funding.
The government has approved R179.6 million in funding through the R500 million Spaza Shop Support Fund, despite ongoing compliance challenges affecting many applicants.
The initiative, launched by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (dtic), seeks to boost the participation of South African-owned spaza shops in township and rural retail markets.
The funding approvals span all nine provinces, with the Small Enterprise Development and Finance Agency (SEDFA) approving 1,316 applications worth R79.6 million, while the National Empowerment Fund (NEF) has approved support for 1,053 enterprises valued at R99.9 million.
Speaking at a media briefing in Pretoria on Friday, Department of Small Business Development Director-General Thulisile Manzini said the fund continues to attract strong interest, with 4,522 complete applications received nationwide and 4,240 already assessed.
However, she noted that compliance remains a major obstacle, as only 58% of applicants are linked to valid business licences or temporary permits issued by municipalities. This has prevented many applications from progressing through the approval process.
Manzini said verification and site inspection processes have also uncovered 354 non-compliant applications involving issues such as businesses that could not be located, ownership discrepancies and inconsistencies between applicants and actual operators.
To date, 2,369 businesses have been approved for support. Manzini said all applicants who successfully complete the verification and compliance process and meet programme requirements have been approved, reflecting the government's commitment to assisting qualifying South African-owned spaza shops.
The support package includes funding for stock purchases, point-of-sale systems, infrastructure improvements, inventory support and other business enhancements. Beneficiaries also receive non-financial assistance aimed at strengthening the sustainability and competitiveness of township and rural enterprises.
Manzini said that the fund has also advanced transformation goals, with women-owned businesses accounting for 43% of approved applications, youth-owned enterprises making up 18%, and businesses owned by persons with disabilities representing 2%.
Beyond financial assistance, SEDFA and the NEF continue to offer training and business development support in areas such as financial management, digital literacy, credit management, regulatory compliance and business formalisation.
The implementing agencies are expected to launch another nationwide awareness and outreach campaign from June 2026 to encourage more eligible spaza shop owners to apply and to assist businesses in meeting compliance requirements.
Manzini said the fund forms part of the government's broader efforts to strengthen township economies, support informal businesses, create jobs and expand economic participation.
She emphasised that strict verification measures are in place to ensure only South African-owned businesses that meet ownership, compliance and operational requirements benefit from the programme, while preventing fronting and other forms of abuse.
