In a major stride toward township economic revitalization, the South African government has launched the R500 Million Spaza Shop Support Fund (SSSF), with applications now officially open to qualifying individuals.
Designed to improve, expand, and formalise locally owned spaza shops, South African government introduced the R500 million Spaza Shop Support Fund following incidents of food poisoning in schools in late 2024.
The incidents prompted a government mandate for all spaza shops to be formally registered— failure to comply led to a crackdown on unregistered businesses and their subsequent closure.
The much-needed fund aims to:
- Refurbish spaza shops: this includes improving the physical structure and ensuring compliance with sanitation and hygiene standards.
- Provide technical training: by equipping shop owners with skills in food safety, inventory management, and other relevant areas.
- Support compliance: the aim is to help spaza shops meet regulatory requirements, including obtaining the necessary permits and licenses.
- Capacity building: the initiative will foster the development of entrepreneurs, particularly women and young people, within the informal sector.
At the official launch on April 10, 2025, Minister of Trade, Industry and Competition, Parks Tau, stated:
“This fund is a catalyst for economic dynamism, injecting energy and resources where they are most needed. It is an investment in our people, our neighbourhoods, and ultimately, the entire South African economy.”
The initiative will be jointly administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFA).
What is the Spaza Shop Support Fund?
The R500m SSSF is a government-backed initiative to support South African-owned spaza shops operating in townships and rural areas. It aims to:
- Enhance business sustainability
- Support compliance with safety and health standards
- Promote digital and financial literacy
- Drive local economic growth through job creation
The fund supports shop owners with funding up to R300,000, business development training, digital transformation tools, and improved access to bulk-buying channels.
ALSO READ: 7 things you need to have your spaza shop registered in South Africa
What support the fund offers: key benefits
1. Financial support
- Up to R300,000 per shop in blended funding (grant + loan)
- Low-interest or interest-free loans
- Stock grants to ease inventory challenges
- Infrastructure grants/loans to improve business space, security, refrigeration, and shelving
2. Business development & training
Training in:
- Point-of-Sale (POS) systems
- Digital and financial literacy
- Food safety and compliance
- Credit health and small business management
3. Technology and systems
- POS devices
- Inventory management tools
- Assistance in adopting digital payment systems
4. Compliance assistance
- Help with meeting:
- Health & safety standards
- Local municipal bylaws
- SARS registration
- CIPC registration (where required)
“We are committed to ensuring that every spaza shop that benefits from this fund also gains access to the necessary health and safety training and resources,” said Minister Tau.
Who qualifies? Eligibility criteria
To apply, the business must meet the following:
- South African citizens only, or naturalised before 1994
- Shop must operate in township or rural areas
- Shop must serve the local community
- Registered with local municipality
- CIPC registration required for funding over R80,000 (can be done within 6 months of approval)
- Must be registered with SARS (or receive a six-month grace period)
- Compliant with food and health safety regulations
- Owner must actively manage the shop
Priority will be given to:
- Entrepreneurs aged 18–35
- Female-owned businesses
- Businesses owned by people with disabilities
Breakdown of funding packages
Package 1: Up to R100,000
Includes:
- R40,000 stock grant (delivered via approved suppliers)
- R50,000 for infrastructure and equipment (refrigeration, shelving, security, POS, etc.)
- Up to R100,000 for training covering:
- Business and financial skills
- Compliance and hygiene
- Digital literacy and POS
Package 2: R100,001 to R300,000
Includes:
- R40,000 stock grant
- R250,000 funding split:
- 50% grant
- 50% interest-free loan
- R100,000 for advanced training and systems adoption
Step-by-step application process
Step 1: visit the application platforms
You can apply through any of the following official platforms:
- Spaza Shop Support Fund
- National Empowerment Fund (NEF)
- Small Enterprise Development Finance Agency (SEFA)
Step 2: create an account
Visit the SEFA SMME Portal
- Click “Register”
- Fill in all personal and business details accurately
- Accept Terms & Conditions
- Submit your registration
Step 3: gather required documents
Prepare the following:
- Certified ID copy
- Proof of residence
- Business license from local municipality
- SARS Tax Number (or request transitional period)
- CIPC certificate (if applying for over R80,000)
Step 4: submit your application
- Log in to your portal account
- Select the Spaza Shop Support Fund
- Upload all documents
- Provide details about your business needs
- Click Submit
Step 5: follow-up
Once submitted:
- Monitor your email and portal for updates
- If additional documents are requested, respond promptly
- Successful applicants will be contacted for further onboarding
Contact information for assistance
- Spaza Shop Fund Call Centre: 011 305 8080 | Email: spazafund@nefcorp.co.za
- NEF Call Centre: 0861 843 633
- SEFA Call Centre: 012 748 9600 | Email: helpline@sefa.org.za
Operating Hours:
- Monday–Friday: 9am–10pm
- Saturday: 9am–3pm
- Sunday: Closed
Why this fund matters
“Every spaza shop supported by this fund is an engine for local growth,” Tau said. “When these businesses thrive, they create ripple effects that boost surrounding sectors—be it suppliers, service providers, or local artisans.”
The Spaza Shop Support Fund is more than a financial injection—it’s a vehicle for economic inclusion, local empowerment, and community transformation.
Apply today and be part of the Stories Shaping South Africa Today!
