The Department of Small Business Development and Department of Trade,Industry and Competition announced that will launch the R500 million Spaza Shop Support Fund to fulfil the promise made by President Cyril Ramaphosa in November 2024.

The launch for that Fund will take place at Eyethu Shopping Centre,Machaba Drive,Mofolo Central in Soweto on Tuesday,8 April 2025 and will be attended by Minister Ms Stella Tembisa Ndabeni and Minister Mr Paks Tau.

The Department of Small Business Development said the fund,which will be jointly administered by the National Empowerment Fund(NEF) and the Small Enterprise Development Finance Agency(SEFDA),provides critical financial and non-financial support to township businesses,including community convenience stores and spaza shops.

The department for small businesses stated that the aim of the fund is to support South African owned township community convenience shops,including spaza shops,in order to increase their participation in the townships and rural areas' retail trade sector.

Minister Ndabeni is convinced that supporting the small businesses such as spaza shops and convenience stores which based in rural areas and townships might boost economic growth and create jobs.

"The opening of the applications for the fund marks another milestones in government's efforts to stimulate the growth of the rural and township economy in the country,particularly by providing the necessary support to the convenience stores and spaza shops that are based in the townships and rural areas.Government recognises the important role that small businesses,including those operating in the rural areas and townships,can play in creating jobs,growing our economy and alleviating poverty,"said Minister Ndabeni.

According to the Department of Small Business Development,the fund provides various types of support including the initial purchase of stock via delivery channel partners,upgrading of building infrastructure,systems,refrigeration,shelving and security,as well as training programmes which includes Point of Sale devices,business skills,digital literacy,credit health,food safety,business compliance.

Minister Tau affirmed that the introduction of the fund because will play a pivotal role to remove supply chain barriers which exist for spaza shops owners and also will prioritise local manufacturers.

"Beyond individual support,the fund seeks to bolster the broader supply chain by fostering partnerships with local manufacturers,black industrialists and wholesalers.Through bulk purchasing arrangements and the promotion of locally produced goods,spaza shops will benefit from reduced costs and increased access to quality products,"said Minister Tau.