The Minister of Trade, Industry and Competition (dtic), Parks Tau, launched a R500 million Spaza Shop Support Fund which he said was an investment in the grassroots economy.
Parks made the announcement at the launch in Soweto on Tuesday.
"The government was taking a concrete step to formalise and empower the informal sector,” Tau said.
He also mentioned that supporting spaza shops was equivalent to empowering entrepreneurs, often women, to participate fully in the economic process.
“These small businesses generate employment, drive local commerce, and channel much-needed income into communities that have long been underserved. Studies show that small businesses account for a significant portion of job creation in South Africa. By providing spaza shop owners with financial support, infrastructure upgrades, and essential business training, we are setting the stage for sustainable job creation.”
Tau said further that the fund was a catalyst for economic dynamism, injecting energy and resources where they are most needed.
According to Tau, the fund is also an investment in South African neighbourhoods and people.
“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. This holistic approach will help create workplaces that are not only economically vibrant but also secure and sustainable for the future.
"Our vision is clear: we want a South Africa where economic opportunities are available to all, where the informal becomes formal, and where the entrepreneurial spirit of our townships becomes a driving force for national transformation.”
He also said the intention for the fund is that it marks a turning point for South Africa’s economy and local communities.
“This initiative embodies the government's vision for a transformed South Africa,” he said.
Spaza shop owners are encouraged to apply at www.spazashopfund.co.za.
To be eligible, you need to be a South African citizen, your shop needs to be operational in a rural or township area in the country, it needs to be registered with the Companies and Intellectual Property Commission, and the South African Revenue Service (SARS).
According to the department, entrepreneurs aged between 18 and 35 will be prioritised.
