Spaza shops like these can access up to R15 000 in funding.
Joburg – Spaza shops have been part of the township business landscape for time immemorial and play a big part in the township economy. There are more than 200 000 spaza shops countrywide.
Spaza shops are an essential cog in the machinery of the South African economy as they provide vital goods, employment and income to those who live in the many townships and cities across the country.
It is important that these businesses are afforded every chance to succeed and this is what the Small Enterprises Finance Agency (Sefa) seeks to do with its Spaza-Shop Support Programme.
The programme will allow township and rural entrepreneurs who are South Africans and own spaza shops, general dealers or grocery stores to gain access to up to R15 000 in working capital.
The funding allows businesses to access R10 000 in the form of a grant and an additional R5 000 revolving loan. The loan will be made available upon exhaustion of the grant of R10 000.
Sefa explains how a revolving loan works: “A revolving loan is a line of credit where the borrower is allowed to use the funds when they are needed.
“It is usually used for clients who have contracts with a predetermined lifespan and monetary value.
“Revolving credit facilities are used for operating purposes and the loan amount varies from month to month depending on the client’s current cash flow needs.”
Participants in the scheme will also be provided with business management support from financial/business graduates, who will be assigned to give dedicated support to the business over 24 months.
One of the conditions that participants are required to meet is that they must employ 70% South Africans which will go a long way in addressing the large unemployment numbers in township communities.
Businesses are also expected to make the undertaking to not sell counterfeit goods and stale or expired foodstuffs. This addresses the issue of some unscrupulous who have in the past been found to be endangering the health of customers by selling food not fit for consumption.
How to apply for funding
– Qualifying owners must go to their nearest Nedbank branch or the Nedbank desk at their nearest Boxer store for assistance in applying. The following documents will be required:
– A valid South African ID document
– A valid and original municipal trading licence/permit to trade, or business licence in the case of a general dealer. Copies are not acceptable, and only permits/licences issued by a municipality, not a counsellor, will be accepted.
– Qualifying spaza shop/general dealer owners must register with the Companies and Intellectual Property Commission (CIPC), the South African Revenue Service (Sars) and the Unemployment Insurance Fund (UIF), in cases where they are not already registered with these organisations
Full details about how entrepreneurs can access the scheme here.
vusi.adonis@inl.co.za
IOL Business