Business Report

Joburg launches outreach drive to help spaza shops access R500 million fund

Mthobisi Nozulela|Published

The City of Johannesburg, in partnership with the Department of Small Business Development, has launched a series of outreach sessions aimed at helping spaza shop owners

Image: Itumeleng English/ Independent Media

The City of Johannesburg, in partnership with the Department of Small Business Development, has launched a series of outreach sessions aimed at helping spaza shop owners access the R500 million Spaza Shop Support Fund.

Initially announced by President Cyril Ramaphosa in November 2024, the fund is administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEDA) and aims to support township businesses, including spaza shops and convenience stores, through a mix of grants and interest-free loans.

IOL previously reported that the Portfolio Committee on Small Business Development has expressed frustration over the limited progress in approving applications for the R500 million Spaza Shop Support Fund, with fewer than 400 out of more than 3,200 submissions being processed since the fund was introduced in April.

Eligible spaza shop owners can receive up to R300,000 through a combination of grants and interest-free loans. The funding can also be used for stock purchases.

In a statement to the media, the City of Johannesburg said the outreach sessions will cover the implementation of the Spaza Shop Fund, progress on Johannesburg’s spaza shop registration drive, and key challenges facing township retail businesses.

Member of the Mayoral Committee for Economic Development Councillor Nomoya Mnisi urged spaza shop owners to attend the sessions.

"We encourage all spaza shop owners to join these sessions and learn how to access funding. Compliance is critical – we're working with owners to meet food safety standards, secure certificates of acceptability, and verify business details," she said.

"Compliant operators will receive temporary permits after the roadshows," she said.

mthobisi.nozulela@iol.co.za

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