R500m grant launched in Soweto to empower spaza shops owners

In a significant move to boost local economies, Minister of Small Business Development, Stella Ndabeni, unveiled  R500 million grant on Tuesday aimed at revitalising township spaza shops.

The Support Fund, was first announced by President Cyril Ramaphosa last year,

The launch, held at the historic Eyethu cinema, a reformded building in Mofolo, Soweto, formerly owned by the late business icon Ephraim Tshabalala, saw over 2,000 residents, aspiring entrepreneurs, and current spaza shop owners in attendance.

The initiative is not only a financial boost but also serves as a tribute to the late Tshabalala and Richard Maponya, two men who exemplified resilience and entrepreneurship in the township.

“Tshabalala’s family of the founder of the business did not allow the business to die. They recognised the hardships and sought partnerships to elevate their ventures,” Ndabeni remarked.

During her address, Ndabeni urged community members to consider diverse business opportunities beyond the saturated spaza shop market.

The fund has been established to support township convenience shops, including spaza stores.

|It will be used for business refurbishments, wholesale aggregation, and non-financial support such as skills training, regulatory compliance, and capacity building.

she highlighted sectors like production and the food value chain, emphasising the importance of innovation.

“We need to think beyond consumption; our future relies on creating sustainable production models,” she stated.

However, the minister also acknowledged challenges posed by illegal business practices, warning residents against allowing undocumented non-South Africans to front businesses for them.

“We are seeing rampant marriages in Free State to help illegal foreigners own businesses in South Africa,” she cautioned, stressing the need for integrity in business ownership.

Additionally, Ndabeni called upon municipalities to reduce high rental and utility rates that disproportionately affect small businesses, such as hair salons that consume substantial water.

“High operational costs will ultimately force these businesses to close their doors,” she added.

Trade and Industry Minister, Parks Tau, who collaborated with Ndabeni’s department on the initiative, expressed confidence in the program’s potential.

“This initiative will correct the wrongs of township entrepreneurship, Our goal is to elevate spaza shops to larger enterprises, or Makoya,”  added Tau.