Guidelines for spaza shops announced

Shoppers queuing outside a general dealer during the lockdown. Image; Express Reporter

The Depart­ment of Small Busi­ness Devel­op­ment (DSBD) has announced guide­lines for par­tic­i­pa­tion in the Spaza Shops and Gen­er­al Deal­ers sup­port scheme.
The scheme, which is in part­ner­ship with Ned­bank, opened on Sat­ur­day, 18 April. This, as the coun­try entered day 23 of the nation­al COVID-19 lock­down.
The depart­ment has finalised an agree­ment with Ned­bank to sup­port spaza shops and gen­er­al deal­ers on the back of the Khu­la Cred­it Guar­an­tee Scheme of the Small Enter­prise Finance Agency (SEFA).
Engage­ments to get oth­er banks on-board is con­tin­u­ing.
Giv­en their foot­print, Ned­bank has availed its desks, which are found at BOXER stores coun­try­wide, to serve as addi­tion­al ser­vice points.
“The sup­port scheme also ben­e­fits the gen­er­al dealers/traditional gro­cery stores in town­ships and vil­lages with the applic­a­ble licences, which are 100% owned by South Africans,” said the depart­ment in a state­ment.
It fur­ther clar­i­fied that where­as local hard­ware stores are also ben­e­fi­cia­ries under this scheme, their fund­ing pack­age is being finalised.
This is to ensure their abil­i­ty to oper­ate, as their busi­ness­es have been includ­ed in the updat­ed list of busi­ness­es offer­ing essen­tial ser­vices allowed to trade dur­ing the course of the nation­wide COVID-19 lock­down.
The sup­port for arti­sans (e.g. plumbers, elec­tri­cians, mechan­ics), whose ser­vices have been clas­si­fied as essen­tial, will also be announced soon.
Appli­ca­tion process
There are sev­er­al steps to be fol­lowed to when apply­ing for sup­port, which are:

• A spaza shop/general deal­er own­er, who is a South African and holds a valid trad­ing per­mit (includ­ing tem­po­rary) or busi­ness licence, in the case of a gen­er­al deal­er, qual­i­fies to apply.
• The qual­i­fy­ing spazas and gen­er­al deal­er own­ers must go to their near­est Ned­bank branch or Ned­bank desk at their near­est BOXER store for assis­tance to apply. The fol­low­ing doc­u­ments will be required:
1. A valid South African ID doc­u­ment, and
2. A valid and orig­i­nal munic­i­pal trad­ing licence/permit to trade or busi­ness licence in case of a gen­er­al deal­er (copies are not accept­able). Only per­mits or licences issued by the munic­i­pal­i­ty, not a coun­cil­lor.
3. The qual­i­fy­ing spaza shop/general deal­er own­er must be will­ing to accept assis­tance to reg­is­ter with the Com­pa­nies and Intel­lec­tu­al Prop­er­ty Com­mis­sion (CIPC), the South African Rev­enue Ser­vice (SARS) and the Unem­ploy­ment Insur­ance Fund (UIF), in the case were the own­er is not already reg­is­tered before approval to par­tic­i­pate in the scheme.
4. At the Ned­bank branch/ desk, the own­ers will be assist­ed to reg­is­ter on the SMMESA data­base and com­plete the applic­a­ble appli­ca­tion form.

• Par­tic­i­pat­ing own­ers will be required to com­mit and under­take to the fol­low­ing:
1. To buy prod­ucts on the depart­ment-approved bas­ket of goods, which will change from time-to-time, in par­tic­u­lar prod­ucts pro­duced by South African SMMEs and coop­er­a­tives.
2. To oper­ate a busi­ness bank­ing account and will accept par­tic­i­pa­tion in the SEDA sup­port­ed busi­ness man­age­ment sup­port pro­gramme, which includes assis­tance with inven­to­ry man­age­ment and stock con­trol, prepa­ra­tions of man­age­ment and annu­al finan­cial state­ments.
3. To uphold Envi­ron­men­tal Health and Food Safe­ty Stan­dards and the Guide­lines of the Depart­ment of Health, which will include:
• Sani­tis­ing before and after serv­ing each cus­tomers.
• Dis­in­fect­ing the ser­vice coun­ters.
• Main­tain the applic­a­ble social dis­tance between cus­tomers, and the cus­tomer and ser­vice point.
• No sale of coun­ter­feit goods and stale/expired food­stuff.
• Not use trad­ing spaces as sleep­ing quar­ters.
Sup­port avail­able under the scheme
Var­i­ous forms of sup­port are avail­able under the scheme, which includes:
1. Access to work­ing cap­i­tal invest­ment and revolv­ing cred­it facil­i­ty that is backed by the Khu­la Cred­it Guar­an­tee scheme of SEFA, in part­ner­ship with Ned­bank. The facil­i­ty is avail­able at par­tic­i­pat­ing whole­salers, which are dis­trib­uted coun­try-wide. The list of par­tic­i­pat­ing whole­salers will be shared with approved spaza and gen­er­al deal­er own­ers.
2. Busi­ness Man­age­ment sup­port, which includes assis­tance with basic finan­cial man­age­ment, with the sup­port of financial/business grad­u­ates, who will be assigned to give ded­i­cat­ed sup­port to the busi­ness over a 24-month peri­od.
3. Legal com­pli­ance, includes assis­tance to reg­is­ter with CIPC, SARS and UIF, and oth­er com­pli­ance require­ments that may be nec­es­sary for par­tic­i­pa­tion in the scheme.
For addi­tion­al assis­tance or enquiries, spaza shop and gen­er­al deal­er own­ers may call 0860 663 7867 or e‑mail
Addi­tion­al infor­ma­tion may be obtained at the fol­low­ing web­sites:;;; . ––

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President Cyril Ramaphosa GCIS.

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