Latest news with #DSBD
Zawya
7 hours ago
- Business
- Zawya
South Africa: Spaza Shop Support Fund information session to be held in Limpopo
Limpopo spaza shop owners will get an opportunity to learn more about how they can access financial and non-financial support from the Spaza Shop Support Fund at an interactive session at the George Phadagi Town Hall, in Thohoyandou, on Friday. The session is part of a countrywide campaign aimed at creating awareness about the Spaza Shop Support Fund. The campaign, which began in KwaZulu-Natal last month, is hosted by the Department of Trade, Industry, and Competition (the Dtic) and the Department of Small Business Development (DSDB). The R500m fund was launched by the Minister of Trade, Industry and Competition, Parks Tau, and the Minister of Small Business Development, Stella Ndabeni-Abrahams, in Soweto, on 8 April 2025. The national education and awareness campaign is being held in partnership with the Small Enterprise Development and Finance Agency (SEDFA) and the National Empowerment Fund (NEF), the agencies of the DSBD and the Dtic, respectively, which will be responsible for administering the fund. The interactive session with spaza owners in the Vhembe District Municipality will be an opportunity to learn more about how to apply for the fund and which requirements will they be expected to comply with. According to Minister Tau, government is taking a concrete step to formalise and empower the informal sector with the fund. Tau said supporting spaza shops would enable entrepreneurs, often women and young people, to participate fully in the economic process. 'These small businesses generate employment, drive local commerce, and channel much-needed income into communities that have long been underserved. Studies show that small businesses account for a significant portion of job creation in South Africa. 'By providing spaza shop owners with financial support, infrastructure upgrades, and essential business training, we are setting the stage for sustainable job creation,' Tau said. Minister Ndabeni said the role played by Sedfa and NEF was truly appreciated and that the department believed this fund would go a long way in assisting shop owners that are registered and have operating permits. 'Our partnership ensures that spaza shop owners are not only funded but are also trained, mentored, and integrated into reliable supply chains. This is about building long-term sustainability for township retail,' Ndabeni said. The aim of the fund is to support South African-owned township community convenience shops, including spaza shops, to increase their participation in the townships and rural areas' retail trade sector and to provide critical financial and non-financial support to township businesses, including community convenience stores and spaza shops. The fund also provides various types of support including the initial purchase of stock via delivery channel partners, upgrading of building infrastructure, systems, refrigeration, shelving and security, as well as training programmes which includes point of sale devices, business skills, digital literacy, credit health, food safety, business compliance. The fund also seeks to bolster the broader supply chain by fostering partnerships with local manufacturers, black industrialists and wholesalers. Through bulk purchasing arrangements and the promotion of locally produced goods, spaza shops will benefit from reduced costs and increased access to quality products.
IOL News
2 days ago
- Business
- 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 South African
24-05-2025
- Business
- The South African
Officials worry SA's spaza shop fund will fall prey to ‘sticky fingers'
There is widespread concern the R500-million SA spaza shop fund will be misappropriated if it is not well managed from the start. This is the view of the President of the South African Spaza and Tuckshop Association (SASTA), Kgothatso Ramautswa. Ramautswa said the spaza shop fund has the potential to stabilise the hard-hit informal industry. However, the associated also expressed concern that aid may be misappropriated due to 'sticky fingers.' And the launch of the fund has also seen 'vultures circling.' 'Ultimately, it depends on how effectively and transparently the funds are managed. Our primary concern lies in the management and accountability of the spaza shop fund,' confirmed Ramautswa. Moreover, the Department of Small Business Development (DSBD) has warned of copycat fund scams. And says spaza shop owners should be cautious of individuals/organisations claiming to assist with the application process. Furthermore, the DSBD confirmed that no official may handle the administrative payment process. Applicants for the new spaza shop fund had to lead through a series a administrative requirements to be eligible with local government. Image: File Likewise, the DSBD outlined several measures it will take to ensure the R500-million spaza shop fund isn't looted. The goal herein is to ensure the funds reach the intended beneficiaries in the form of business assets, rather than cash, it said: Primary, it will deal in stock (up to R40 000 worth) rather than cash. worth) rather than cash. Stock can only be claimed by beneficiaries at wholesalers identified by major retailers. Municipalities and township associations at ward level will also be stakeholders in the fund administration. A trackable point-of-sale (POS) system will observe trading activity and prevent beneficiaries from selling stock illegally. Meanwhile, the informal trading industry is valued at nearly R200 billion in South Africa. And the new spaza shop fund will be able to make the following available to eligible clients: Financial support, training, and business development services. Up to R300 000 per shop through a combination of grants and low-interest loans. per shop through a combination of grants and low-interest loans. Training in hygiene and regulatory standards. Promotion of digital payment systems, inventory management tools, and financial literacy. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
21-05-2025
- Business
- The Citizen
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
The Herald
25-04-2025
- Business
- The Herald
G20 Eastern Cape Provincial Launch
The Minister of Small Business Development, Ms Stella Ndabeni is pleased to announce the launch of the G20 Provincial chapter proudly hosted by the department in the Eastern Cape province, in Gqeberha. The G20 is a premier forum for international economic cooperation, bringing together the world's leading economies to discuss global economic issues. South Africa is selected to host the upcoming G20 summit in 2025, under the theme "Solidarity, Equality, and Sustainability." This is a significant moment for the country, as it marks the first time an African country has hosted the G20. Catch the launch activities from 29 – 30 April Live on DSBD Facebook Page:
