R500 Million Boost for Township Retailers Through the Spaza Shop Support Fund

27 May

The Department of Trade and Industry announced the Spaza Shop Support Fund (SSSF), a R500 million initiative aimed at revitalizing township and rural convenience shops, particularly spaza shops. This fund offers both financial and non-financial support to help these businesses become more competitive, compliant, and sustainable.

Key Components of the SSSF

Financial Support:
- Up to R100,000 per shop, comprising:
  - R40,000 grant for initial stock purchases via delivery partners
  - R50,000 in a blended grant and loan for infrastructure upgrades (e.g., refrigeration, shelving, security)
  - R10,000 for business management training, including digital literacy and compliance.
Eligibility Criteria:
- 100% South African-owned spaza shops operating in townships or rural areas
- Registration with local municipalities and compliance with relevant legislation
- Priority given to youth (18-35), women, and people with disabilities.
Application Process:
- Applicants must create an account on the SSSF portal, complete the registration, and submit the required information.

Implications for Accountants

Accountants working with clients in the informal retail sector should be aware of the SSSF's offerings and assist eligible clients in applying for the fund. The financial support can aid in business growth, compliance, and sustainability, while the non-financial support can enhance operational efficiency and competitiveness.

For more information on the packages availably and how to apply, visit the official SSSF website.

GovernmentSpaza Shops