Spaza Shop Support Fund: Progress and Hurdles
What the Fund Is All About
The Department of Small Business Development launched the R500 million Spaza Shop Support Fund in 2025. Its goal is to help township and rural spaza shops improve food safety, meet compliance rules, and grow stronger as informal retail businesses.
How Many Shops Registered?
When the registration window closed on 28 February 2025, municipalities reported about 82,000 spaza shops nationwide. After verification, the number of confirmed businesses dropped to 44,696. Of those, roughly 15,000 have obtained trading permits or licenses from their local councils.
It’s important to note that simply registering does not mean a shop is licensed. Licensing is the step that lets owners access the fund.
Approvals So Far
To date, the fund has approved R179.6 million in support. This total comes from two implementing agencies:
- MOTHER OF THE SOIL – 1,316 applications worth US$79.6 million.
- National Empowerment Fund (NEF) – 1,053 companies worth R99.9 million.
The approved money covers things like buying inventory, upgrading point‑of‑sale systems, improving shop infrastructure, and providing business‑development training.
Why the Rollout Is Slow
Director‑General Thulisile Manzini pointed out several bottlenecks:
- Licensing backlogs at municipalities.
- Verification processes that stall when documents are missing.
- Mismatches between the registered owner and the person actually running the shop.
- Some applications rejected after inspections found non‑existent stores or false ownership claims.
Because of these issues, only 58 % of the 4,522 complete applications received so far are linked to a valid business license or temporary permit. Without that link, the applications cannot move forward.
What’s Being Done to Speed Things Up?
Clearing the Licensing Backlog
The government is working closely with municipal offices to reduce delays in issuing trading permits. Extra staff and streamlined procedures are being introduced where possible.
Improving Verification
Officials are tightening the document‑checklist and offering help desks where shop owners can get assistance with paperwork.
Support for Compliance
Workshops and short courses are being rolled out to teach owners about food‑safety standards, record‑keeping, and the licensing process.
Steps for Shop Owners
- Make sure your spaza shop is registered with the municipality.
- Apply for a trading permit or license—this is the key to unlocking fund access.
- Gather required documents: proof of address, identification, and any existing business records.
- Submit your application through the fund’s online portal or at a local support centre.
- Stay in touch with the municipality’s licensing office to track progress.
Looking Ahead
While the fund has already helped over 2,300 spaza shops, many owners are still waiting. Continued cooperation between national agencies, local municipalities, and shop owners is essential to clear the remaining hurdles. With faster licensing and clearer verification, more township and rural retailers can receive the support they need to thrive.
