Spaza shops ask for more than R32m worth of stock
According to the presentation, spaza shop owners applied for a combined total of R32.4 million for machinery and stock.
Spaza shop owners across the country have submitted applications requesting more than R25 million worth of machinery and stock from the government, as part of efforts to revitalise the informal retail sector.
This comes after the launch of the R500 million Spaza Shop Support Fund by the Department of Small Business Development.
In a recent briefing, it was revealed that the Department of Small Business Development (DSBD) received more than 3 269 applications from spaza shop owners seeking support through the Spaza Shop Support Fund.
However, only 387 of these applications have been processed so far.
Most applications came from KwaZulu-Natal, with 142 submissions and the least from North West with eight.
ALSO READ: Government's R500m spaza shop support fund gets thumbs up
Funding requests
According to the presentation, spaza shop owners applied for a combined total of R32.4 million for machinery and stock.
Of this, machinery accounts for more than R16.4 million, while stock requests make up R16 million.
'The fund seeks to enhance food safety, improve competitiveness, and strengthen locally-owned spaza shops,' the department said.
ALSO READ: Illegal spaza shops 'still proliferate' despite warnings
R52 million disbursed to partners
To ensure efficient delivery, three Distribution Channel Partners (DCPs) have been contracted and are working across various provinces.
According to the department, R52 million has already been disbursed to two of these partners to begin processing and distribution.
'The approach also provides bulk buying (wholesale network) opportunities that will propel the spaza shops to exploit economies of scale and enjoy competitive pricing and packaging,' it said.
Furthermore, geo-mapping and registrations of spaza shops have commenced, with 1 411 shops verified.
'Awareness workshops will be conducted in all provinces between 23 May and 1 July 2025, covering one district per province,' it said.
Online applications can be accessed on the Spaza Shop Fund website.
NOW READ: Government offers R500m spaza shop support fund – Here's what you need to know
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
8 hours ago
- IOL News
Spaza shop fund under fire: Questions over R500m initiative
The R500m Fund, launched to bolster South African-owned spaza shops in townships and rural areas with stock, infrastructure upgrades, and training, has come under intense scrutiny. Image: Itumeleng English/Independent Newspapers A VIRTUAL briefing by the Department of Small Business Development (DSBD) on the progress of the R500 million Spaza Shop Support Fund descended into chaos last week, with MPs from across the political spectrum lambasting officials for 'lacklustre' responses, unresolved corruption risks, and a controversial 'middlemen' supply model that critics warned could hijack the initiative. The Fund, launched to bolster South African-owned spaza shops in townships and rural areas with stock, infrastructure upgrades, and training, was under intense scrutiny. Only 3 000 to 5 000 applications have been received — a fraction of the estimated 200 000 spaza shops nationwide — raising concerns about exclusion, bureaucratic hurdles, and whether foreign-owned shops were being sidelined. The most explosive revelations centred around the Fund's reliance on three unnamed Delivery Channel Partners (DCPs), private wholesalers tasked with supplying spaza shops. Opposition MPs accused the state of creating a 'monopoly' for connected insiders. 'Why are these DCPs not listed in the presentation? Who are they? What are their markups? This is a middlemen scheme!' charged the DA's Nico Pienaar, demanding the Gazette records detailing their selection. FF+'s Henk van den Berg echoed concerns: 'Do spaza shops have to buy from these DCPs? Who pays them, the Fund or the shop owners?' DSBD Deputy Director-General Qinisile Delwa sidestepped specifics, stating only that DCPs were 'vital intermediaries'. Lwandiso Makupula from the Small Enterprise Development and Finance Agency (Sefda) later admitted that 58% of spaza shops are Somali-owned and 25% Ethiopian-owned, leaving just 8% eligible for the Fund. But MPs were unmoved. 'This is a recipe for fronting. Cartels will use locals as fronts to access funds,' warned the ANC's Peter Mabilo. Pienaar slammed the Fund's 'reckless' exemption of spaza shops from immediate Companies and Intellectual Property Commission (CIPC) and tax registration, calling it a 'free pass for abuse'. 'We're bleeding taxpayers, yet here's a state fund allowing six months' grace before registration. This is anti-formalisation and anti-growth,' he said. DSBD offered no justification, deepening suspicions of lax oversight. With Gauteng dominating applications, rural provinces risk being left behind. 'Your roadshows are failing. Rural spaza shops are lifelines, why aren't they prioritised?' asked chairperson Sonja Boshoff (DA). The ANC's Moses Modise blasted the DSBD's 'pathetic' outreach: 'Where are the community radio ads? The local newspaper campaigns?' Municipal licensing emerged as another crisis point. Many townships lacked digital systems, leaving spaza shops in limbo. 'Some municipalities don't even have licensing capacity. Is DSBD engaging the South African Local Government Association (Salga)?' Boshoff pressed. Delwa conceded that only the Northern Cape was piloting e-licensing, while KwaZulu-Natal and the Western Cape lead. Despite Makupula's assurance that 'misused grants convert to loans', MPs remained sceptical. 'Where are the anti-corruption measures? Who monitors officials?' Boshoff asked. The MK Party's Sarah Mokoena highlighted registration chaos: 'The online system crashes constantly. Shop owners think they're registered when they're not.'
The Citizen
5 days ago
- The Citizen
Government pays R6 Million from R500 million Spaza Shop Fund
Only a fraction of the fund has reached township and rural spaza shop traders as verification delays slow disbursements The department of small business development has so far disbursed R6 million from the R500 million Spaza Shop Support Fund (SSSF). This is aimed at supporting South African-owned spaza shops and food-handling outlets in townships and rural areas. Launched last month, the fund is designed to provide financial assistance of up to R300 000 per shop through a mix of grants and low-interest loans. However, according to small business development minister Stella Ndabeni, on Thursday, the implementation has been slower than expected. 'This is moving at a slow pace due to all the parties that are involved in coordinating the work, which includes inspections and verification of citizenship, as well as site and health inspections,' she said. Focus on compliance and sustainability To qualify for funding, shop owners had to register for an operating permit before the deadline. The money can be used for stock purchases, infrastructure improvements, business development tools and the adoption of point of sale (POS) systems. 'The fund will assist shop owners that met the deadline for the registration of an operating permit,' Ndabeni said. The initiative is administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA) and includes support to help businesses meet hygiene and regulatory standards. ALSO READ: Illegal spaza shops 'still proliferate' despite warnings Global SME Summit set for July The Minister also announced that South Africa will host the first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting in Johannesburg from 22 to 24 July 2025. The event, co-organised with the United Nations Small Business Agency, will see participation from nearly 50 countries, including Brazil, Kenya, India and Switzerland. 'We are steadfast in our commitment to create a more enabling legislative and policy environment that empowers small businesses to grow, scale up and compete on the global stage,' said Ndabeni. She said the meeting would help shape global small business policy and push for the formation of a dedicated MSME Working Group under the G20 during South Africa's presidency. 'We do not want a talk shop. We will emerge with practical initiatives that strengthen the global MSME support eco-system,' she added. NOW READ: Spaza shops ask for more than R32m worth of stock
The Citizen
5 days ago
- The Citizen
Semigration boosts Cape residential rental yields
Semigration to the Cape has been a major boost for the residential rentals market, especially in areas such as Durbanville which offers a great lifestyle, but more affordability, says Daniela de Villiers, Seeff's rentals manager for the Durbanville area. The higher demand has unlocked more opportunities for investors and landlords in the area, offering attractive rental yields of 6%-10% depending on the area and property, she says. Average rental rates in the Durbanville and surrounding area range between R9,000 to R25,000, and for luxury homes, upwards of R30,000 per month. Luxury estate homes go to as much as R51,000 and R60,000 per month for homes rented out by Seeff in the Kanonberg and Clara Anna Fontein estates. Tenants are coming mainly from Gauteng, particularly the Pretoria area. They are drawn to the area due to the central location, reputable schools, and relative affordability compared to other upmarket locations in Cape Town. Durbanville offers easy access to main arterials, and well-maintained, safe neighbourhoods. The country-like lifestyle and proximity to the Durbanville Wine Valley are also a bonus for people moving from upcountry. Both families and young professionals are flocking to the area. Students from nearby medical facilities, and those doing practical rotations at state hospitals in the area are also drawn to the rental market. Anneke Roux, another rental agent with Seeff who operates in the Welgedacht area, says the area is also popular with those who enjoy an active lifestyle as they can safely walk and cycle in the scenic surroundings. The highest demand in Welgedacht is in the R13,000-R20,000 range while yields range from 6-10%. Schools are a big attraction, according to Allison Oosthuizen, another Seeff rental agent. Young professionals are drawn to the good selection of apartments in the area, including those at the Waterfront. Apartments rent out at R9,000-R11,000 per month which is more affordably priced compared to the Cape Town CBD. Townhouses is a popular alternative as they are also well-priced at R14,000-R18,000. Even luxury homes at R41,000-R51,000 offer good value compared to other upper end areas. The opportunity for investors is mostly for properties in the R1.2m to R2.4m price range where they can achieve a rental income of R9,000 to R20,000 per month, providing a rental yield of 5-7%. Gratia van Jaarsveld, another Seeff rental agent, however, cautions that landlords must keep their prices in line with the market or they could risk not attracting a good calibre tenant within a reasonable period. Pet-friendly properties are always sought-after. When investing in a rental property, a good location is vital, but landlords must maintain properties in a good condition to optimise the rental and retain good tenants. The areas of Pinelands and Thornton, closer to the City, report similar trends. Johan Meyer, licensee from Seeff for the areas, says the high demand is due to proximity to UCT, Groote Schuur Hospital, good schools, and access to the airport. Tenants include students, medical staff as well as those working at the Old Mutual offices. Here too, rental properties are in short supply, and landlords can earn yields of 6-10%. There is high demand for neat, modern accommodation such as the new Pineworx development. Apartments are renting out at R9,500-R14,000 while houses range from R20,000. The highest prices achieved by Seeff over the last year include R25,000 for a rental in Victory Avenue, R35,000 in Uitvlugt, and R42,000 in Links Drive. Issued by Gina Meintjes
