Spaza shop support fund: Only 387 applications processed, Committee urges greater participation
Only 387 out of 3,269 applications for funding from the R500 million Spaza shop support fund have been processed since the fund was launched in April this year.
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The Portfolio Committee on Small Business Development has expressed concern over the low number of processed applications for the R500 million Spaza shop support fund, with only 387 out of 3,269 applications successfully processed since the fund was launched in April this year.
The committee was recently briefed by the Department of Small Business Development on the disbursement progress for the fund, which is aimed at supporting registered spaza shops and food-handling businesses across South Africa.
The department revealed that while the processing of applications is ongoing, many submissions failed to meet basic requirements, primarily providing proof that the businesses are registered with their local municipalities.
Committee chairperson Masefako Dikgale said that although the fund was relatively new, the committee had expected a much higher number of applications to be processed by now. “We expected our people from townships and villages throughout the country to take advantage of this fund to uplift their businesses and create jobs,” she said.
Dikgale added that funding of this nature should be making a tangible difference in the lives of small business owners. “Funds of this nature are there to make a real impact in the lives of small business owners who have a collective duty to help government grow the economy,” she said.
The fund allows recipients to use the grant for refurbishments, wholesale aggregation, and non-financial support such as skills training, regulatory compliance, and capacity building.
Despite the challenges, the committee welcomed the department’s plan to roll out a nationwide roadshow aimed at educating small business owners on the application process and required documents.
The committee acknowledged that many small-scale entrepreneurs, especially those in rural and township areas, struggle with access to capital, high operational costs, and limited opportunities to buy in bulk.
Dikgale stressed that the committee would closely monitor the fund’s implementation to ensure it reaches its intended goals.
Meanwhile more than 150 spaza shop owners and entrepreneurs attended an outreach awareness session hosted by the Department of Trade, Industry and Competition (the dtic) and the Department of Small Business Development (DSDB) in Ndwedwe, in KwaZulu-Natal at the weekend.
The session aimed to educate the business owners about how to apply for funding from the support fund.
Local spaza shop owner, Musawenkosi Mkhize who attended the session, said a lot of shop owners were struggling to keep their shops open as competition is rife in the area.
“We have long engaged the local and provincial government to assist in regulating and investing in our local businesses so that we can compete with foreign-owned shops that sell products and food at a cheaper price. I am glad that government has taken a positive step in directing their efforts in assisting all of us that you see today. It is long overdue, but we as a collective are happy with the intervention,” said Mkhize.
When asked if he already applied for funding from the fund, Mkhize indicated that he had some few outstanding documents that he needed to gather in order to qualify for the fund.
Speaking at the same event, Enterprise Ilembe Economic Development Agency CEO Siyabonga Mazibuko said as of February 2025, the district had processed and registered 1 395 spaza shops in the iLembe District Municipality alone.