The Department of Small Business Development has deployed 52 officers across all 52 districts in South Africa to assist spaza shop owners with fund applications and ensure compliance.
This was revealed during a Regional Stakeholder Engagement on the Spaza Shop Fund, hosted today, 27 May 2025, in Soweto by the City of Johannesburg’s Economic Development Department in partnership with the department.
The engagement aims to guide spaza shop owners, communities, and stakeholders on the future of township retail businesses, helping them access financial support.
Tshepho Mathibela from the department said each district will have an officer dedicated to mapping spaza shops and guiding applications. A separate official has been assigned for the City of Johannesburg. “Our goal is to identify how many spaza shops exist and ensure they meet food, health, and safety standards. Owners must manage their businesses directly and adhere to a code of conduct. While youth, women, and persons with disabilities are prioritised, the programme is open to all.”
Mathibela detailed the funding:
- spaza shop owners can access a R100 000 support package;
- A R40 000 stock grant;
- R50 000 for assets (part grant, part loan); and
- R10 000 for non-financial support like digital skills and business training.
Benji Seitlhamo from the City of Johannesburg emphasised the need for these engagements, saying: “We want to update spaza shop owners on the application process and assist them in accessing the Spaza Shop Fund, which is vital for supporting local entrepreneurs.”
Mpho Raphulani from the City’s Development Planning unit raised concerns about fraudulent practices in the application process. “Some applicants are submitting fake documents, email addresses, phone numbers, and even faking application steps. Some people advertise before applying or backdate affidavits, which violates compliance procedures.”
Local spaza shop owner Nthabiseng Tomotomo expressed gratitude for the government’s support but appealed for more flexible compliance requirements. “We were hoping there could be some flexibility in terms of relaxing some clauses, and not that we don’t want to be compliant, but is there a way that they can be done in phases.”
Written by Zingiswa Mndayi