Image Source: SABC News
Local – R500 million has been allocated to support spaza shops and food-handling outlets as part of a new initiative by Small Business Development Minister Stella Ndabeni.
The Spaza Shop Support Fund aims to help these small businesses compete more effectively with larger retailers by improving their access to bulk purchasing, financial assistance, and business training. The funding will come from the Department of Small Business Development (R150 million) and the Department of Trade, Industry and Competition (R350 million).
“The fund will be launched in the next two weeks, and a date will be communicated,” Ndabeni said at a media briefing in Pretoria on Sunday.
The initiative is designed to level the playing field by linking spaza shops and food-handling businesses to buying groups, allowing them to purchase stock at lower costs. Additionally, shop owners will receive training and operational support to strengthen their businesses.
Spaza shops and food-handling businesses that registered with their local municipalities by the 28 February 2025 deadline will be prioritised for support. However, Ndabeni assured that others could still benefit from existing government programmes.
“Other businesses will still benefit from existing departmental funds and programmes, including financial assistance by the Small Enterprise Development and Finance Agency (SEDFA) and other development finance institutions (DFIs),” she said.
Awareness Campaigns and Outreach
Moreover, the department will roll out a multi-disciplinary outreach programme to raise awareness about the fund and other business support initiatives in partnership with provincial and local governments.
The programme includes awareness campaigns in all 52 districts and metros from 03 March 2025 to 30 March 2025, followed by workshops facilitated by district champions, SEDFA, and business regulation officers.
“The purpose of the outreach program is to bring government services closer to the people through disseminating information on community convenience shops and support offerings.”
As part of the initiative, the department has recruited 61 business regulation officers on six-month contracts, each assigned to a district or metro.
“These officers will be responsible for conducting awareness campaigns, research, and geo-mapping of spaza shops and food-handling facilities, among other functions.”
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Streamlining Regulations
Ndabeni also highlighted the urgent need for regulatory reform to create a more supportive environment for small businesses. To achieve this, the department is introducing e-registration systems to help municipalities simplify and speed up the business registration process.
She pointed to the department’s Red Tape Reduction Programme, which focuses on eliminating unnecessary bureaucratic obstacles that hinder small businesses.
“We remain committed as a government to streamline business licensing in South Africa, reduce regulatory burdens, and foster an environment conducive to entrepreneurship, innovation, and job creation.”
Ndabeni further explained that once approved, the amended National Business Licensing Bill will introduce more precise, consistent regulations, making it easier for businesses to operate legally. This bill aims to provide transparency and certainty for business owners.
“[It will] enable businesses to thrive and contribute to the country’s economic growth and development.”
