R500m spaza shop support fund set to boost township businesses

In a significant move to enhance economic vitality of South African townships, Trade, Industry and Competition Minister, Parks Tau, alongside Small Business Development, Minister Stella Tembisa Ndabeni, will officially launch the R500 million Spaza Shop Support Fund on April 8, 2025, at the Eyethu Shopping Center in Mofolo Central, Soweto.

This initiative, unveiled by President Cyril Ramaphosa in November 2024, aims to bolster community convenience stores and spaza shops, critical components of  township retail sector.

The fund, which will be co-managed by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA), is designed to provide both financial and non-financial support to township businesses.

This includes assistance with initial stock purchases, upgrades to infrastructure, and training in various essential skills.

Minister Ndabeni emphasised the fund’s role in stimulating the rural and township economy, stating, “This marks another milestone in government’s efforts to provide the necessary support to convenience stores and spaza shops that are based in the townships and rural areas. Small businesses can play a vital role in creating jobs, growing our economy, and alleviating poverty.”

The fund aims to facilitate holistic revitalisation of township economies by not only empowering individual shop owners but also strengthening overall supply chain.

Minister Tau highlighted this approach, saying, “The fund does not only support economic inclusion but also aligns with national priorities to formalise informal sectors and promote local production.”

Support mechanisms include partnerships with local manufacturers and wholesalers, which can lead to bulk purchasing arrangements that reduce costs for spaza shops while increasing their access to quality products.

As anticipation builds for the launch, stakeholders within the township economy are hopeful  Spaza Shop Support Fund will provide much-needed boost that promotes sustainability and growth in their communities.

With the government acknowledging  essential role of these businesses,  upcoming launch is seen as a pivotal step toward fostering more inclusive economic landscape in South Africa.