Discover how the R500 million Spaza Shop Support Fund, launched by the South African government, aims to empower township businesses and enhance economic growth through various support initiatives.
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In a move to support spaza shops across the country, the Departments of Trade, Industry and Competition and Small Business Development will launch a R500 million Spaza Shop Support Fund.
The fund provides various types of support including the initial purchase of stock via delivery partners, upgrading of building infrastructure, systems, refrigeration, shelving, and security, as well as training programmes which include Point of Sale devices, business skills, digital literacy, credit health, food safety, business compliance.
Initially introduced by President Cyril Ramaphosa in November last year, the fund will be administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency, and will provide support to township businesses, convenience stores and spaza shops.
Small Business Development Minister, Stella Ndabeni, said the opening of the fund will make another milestone in the government's plans to stimulate growth in the rural and township economy.
"The fund will provide the necessary support to the convenience stores and spaza shops that are based in the townships and rural areas.
"Government recognises the important role that small businesses, including those operating in the rural areas and townships, can play in creating jobs, growing our economy, and alleviating poverty," she said.
According to Minister of Trade, Industry and Competition, Parks Tau, the fund will not only support economic inclusion but will align with national priorities in order to formalise informal sectors.
"It will also safeguard consumers and promote local production. It is a holistic approach to revitalising township economies," Tau said.
However, beyond individual support, Tau explained that the Fund will create opportunities for broader supply chain by fostering partnerships with black industrialists, wholesalers and local manufacturers.
"Through bulk purchasing arrangements and the promotion of locally produced goods, spaza shops will benefit from reduced costs and increased access to quality products," Tau said.