By Nkosinathi Mandhlazi
The Department of Small Business Development has launched a R500 million Spaza Shop Support Fund aimed at helping township and rural entrepreneurs grow their businesses. The initiative offers up to R300,000 in funding per enterprise, with a focus on youth (ages 18–35), women, and people living with disabilities.
The fund seeks to tackle common challenges faced by small business owners, such as lack of capital, limited access to resources, and difficulty sustaining operations. By providing financial support, the government hopes to stimulate local economic growth, boost job creation, and improve the competitiveness of small, youth-owned businesses.
To qualify for the funding, applicants must:
- Be South African citizens
- Operate their spaza shop in a township or rural area
- Have a registered business
- Present a clear business plan and financial projections
“This initiative will uplift many small businesses, including mine. As shop owners, we are very happy,” said Gracious Sholwane, a spaza shop owner from Kabokweni.
Minister of Trade, Industry and Competition Parks Tau described the fund as a step toward building an inclusive economy:
“This initiative embodies our vision of a transformed South Africa — where the potential of every individual, every spaza shop, and every small business is unlocked. Through this fund, we are setting the stage for a transformed economy and a robust industrial sector.”
The fund is also expected to directly impact job creation, as many spaza shop owners will be able to purchase equipment, hire staff, and expand operations. In a similar past initiative, a shop owner in Nelspruit used government funding to create a job opportunity and significantly grow their business revenue.
As the government continues to drive economic inclusion, eligible spaza shop owners are encouraged to apply for this opportunity and take part in reshaping the township and rural business landscape.
