Sedibeng Hosts Spaza Shop Fund Drive to Boost Township Business Growth

The Sedibeng District Municipality in Gauteng is set to become the next focal point of the national effort to uplift township economies through the Spaza Shop Support Fund, a R500 million initiative launched by government earlier this year. An interactive outreach session will be held at City Hall in Vereeniging’s Central Business District on Friday, starting at 9 a.m., where township-based spaza shop and convenience store owners will receive critical information on how to access both financial and non-financial support.

This latest campaign stop builds on the momentum of similar sessions held across multiple provinces, including KwaZulu-Natal, Northern Cape, North West, Mpumalanga, and Limpopo, where local entrepreneurs gathered in large numbers to learn how the initiative can help transform and formalize informal retail enterprises.

Government Mobilizes to Strengthen Township Economies

The Spaza Shop Support Fund was officially launched in April 2025 by Trade, Industry and Competition Minister Parks Tau and Small Business Development Minister Stella Ndabeni. The initiative is a collaborative project between the Department of Trade, Industry and Competition (the dtic) and the Department of Small Business Development (DSBD), in partnership with two of their implementing agencies — the Small Enterprise Development and Finance Agency (SEDFA) and the National Empowerment Fund (NEF).

The overarching aim of the fund is to increase the participation and competitiveness of South African-owned spaza shops and township convenience stores in the country’s retail sector, particularly in underserved rural and peri-urban areas.

What the Fund Offers: Holistic Support for Township Entrepreneurs

The fund offers a mix of financial assistance and business development support, targeting the operational, structural, and skill-based challenges commonly faced by informal retailers. Specific support mechanisms include:

• Access to Affordable Stock: Through partnerships with delivery channel providers, shop owners can procure bulk goods at discounted rates, enhancing competitiveness against large retailers.

• Infrastructure Upgrades: This includes modernizing stores with shelving, refrigeration, security systems, and Point-of-Sale (POS) devices, aimed at increasing operational efficiency and customer satisfaction.

• Business Training and Skills Development: Entrepreneurs will have access to capacity-building initiatives covering digital literacy, financial management, compliance, food safety standards, and credit health.

• Local Supplier Partnerships: The campaign actively promotes relationships between township businesses and local manufacturers, black industrialists, and wholesalers, helping spaza shops integrate into more resilient supply chains.

A Strategic Investment in Inclusive Growth

According to a joint statement issued by the dtic and DSBD, these interventions are strategically designed to foster an inclusive and thriving township economy.

“These efforts are geared toward increasing the competitiveness of township businesses and ensuring they play a significant role in the broader retail sector. The campaign also promotes bulk buying and the use of locally produced goods, helping spaza shops lower operating costs while improving access to quality products,” the departments stated.

Previous Engagements Inspire Strong Turnout

The success of the campaign’s previous legs has been marked by high levels of participation and a surge in applications for support. Entrepreneurs attending the events have expressed optimism that the initiative will help transition their businesses from survivalist ventures to sustainable, growth-oriented enterprises.

Stakeholders have also commended the fund for its inclusive criteria and localized approach, ensuring that real support reaches informal businesses that are often excluded from traditional funding channels.

What to Expect at the Sedibeng Session

Friday’s session in Sedibeng will include:

• Presentations by officials from the dtic, DSBD, SEDFA, and NEF

• One-on-one advisory support for prospective applicants

• Demonstrations of digital tools and POS technologies

• Networking opportunities with approved stock suppliers and delivery partners

• Testimonials from previous beneficiaries in other provinces

Attendees are encouraged to bring business documents, registration details, and any queries they have regarding the application process. The session is open to all township-based micro retailers looking to scale their operations and become part of formal supply chains.

Driving Change Where It Matters Most

As South Africa continues to grapple with challenges of unemployment, poverty, and inequality, initiatives like the Spaza Shop Support Fund represent tangible steps toward building an inclusive, sustainable economy that leaves no one behind. By supporting the backbone of township economies — micro and informal retailers — government is not only creating jobs but also empowering communities to take charge of their economic futures.