Spaza Shop Support Fund Campaign Guides Township Retailers Towards Compliance

The Spaza Shop Support Fund—launched on 8 April 2025 by Trade, Industry and Competition Minister Parks Tau and Small Business Development Minister Stella Ndabeni Abrahams—sets aside R500 million to formalise and grow township convenience stores nationwide. The fund flows directly from President Cyril Ramaphosa’s 2024 commitment to unlock township economies and improve food-retail safety standards. 

Awareness Drive Reaches Sedibeng and Vereeniging

Since May the two departments have taken the Spaza Shop Support Awareness Campaign to townships in Eastern Cape, KwaZulu-Natal, and Gauteng. Last week’s stop at Vereeniging City Hall drew scores of owners seeking clarity on paperwork and zoning rules, while a sister event in Sedibeng prepared entrepreneurs for on-site compliance inspections that begin later this winter.

Demystifying Compliance: What Owners Must Know

Municipal officials stressed that most suburban homes are not automatically zoned for commerce. Owners must secure a rezoning certificate, submit a stamped building plan, occupancy certificate, CIPC registration, tax-clearance pin, certified ID, and a proof-of-address dated within 90 days. Failure to meet even one item stalls a permit and disqualifies businesses from the grant, supplier deals, and mentorship opportunities embedded in the fund.

Voices from the Floor

• Matshidiso Mooki, a five-year shopkeeper in Sharpeville, said the session “answered questions I’ve had for years” and renewed her resolve to “comply with every regulation so I can scale responsibly.” 

• Matome Tshabalala, who opened after the 2020 COVID-19 lockdown, called the bookkeeping module “a game changer” that will let him track margins and qualify for stock-financing in 2026.

Why Spaza Shops Matter

South Africa hosts about 150 000 spaza outlets—a sector worth R178 billion to R200 billion annually, larger than some formal supermarket chains. These stores supply 70 % of township households and support tens of thousands of jobs, yet many operate informally, limiting access to credit and bulk-buy prices. 

Step-by-Step: Accessing the Fund

1. Register or update your entity with CIPC (Pty Ltd, co-op, or sole prop).

2. Open a business bank account and secure a SARS tax-clearance pin.

3. Apply for rezoning (if trading from a residential stand) through the local municipality; attach the approved building and occupancy certificates.

4. Attend a provincial awareness workshop for onsite document vetting and digital profile creation.

5. Submit the online application on the DTIC/DSBD portal. Upload financial records (three-month bank statements, point-of-sale data, or manual sales log) and a simple business plan.

6. Undergo verification: inspectors will visit to confirm stock levels, hygiene, and safety.

7. Receive support—qualifying firms gain:

   • Working-capital grants (up to R50 000)

   • Bulk-stock vouchers negotiated with FMCG giants

   • Free bookkeeping software licences and point-of-sale devices

   • Entry to supplier development tracks run by Tiger Brands and other manufacturers (target: reach 90 000 township stores by 2026). 

Looking Ahead

Officials aim to process 10 000 compliant applications by March 2026 and disburse the first R250 million before the 2025 festive season. Future campaign stops include Soweto’s Jabulani Amphitheatre in July and Umlazi Mega City in August. Workshops will introduce a mobile-first filing app so owners can upload receipts and auto-generate tax returns—reducing audit times from weeks to days.

The departments have invited private banks to provide micro-loans at prime-minus-3 % for graduates of the programme, while municipalities are revising bylaws to legalise home-based retail in designated streets. Extension officers will track progress, ensuring the fund not only preserves township livelihoods but also propels them into South Africa’s formal retail mainstream.