Latest news with #SouthAfricanSpazaandTuckshopAssociation
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.
IOL News
24-04-2025
- Business
- IOL News
South African Spaza and Tuckshop Association warns of potential abuse of R500 million fund
The fund, introduced earlier this month, is one of the department's key initiatives to improve food safety and combat food-borne illnesses. The South African Spaza and Tuckshop Association has voiced concerns that the government's recently launched R500 million support fund for spaza shops could be misappropriated. The fund was launched by the Department of Small Business Development in collaboration with the Department of Trade, Industry and Competition earlier this month. The fund aims to strengthen township economies by equipping small, often informal retailers with the tools and resources needed to thrive in a competitive market. Additionally, the fund offers training in business management, support for digital transformation, and guidance to help shops comply with health and safety regulations. It also promotes collective purchasing models, enabling spaza shops to access better pricing from wholesalers. In an interview with broadcaster Newzroom Afrika, Sibusiso Ngcobo, a representative of the South African Spaza and Tuckshop Association, said the organisation has a responsibility to ensure that the government's spaza shop support fund is not misused. Get your news on the go, click here to join the IOL News WhatsApp channel. "We realise that we as South Africans have a responsibility to make sure that the elements of corrupt officials and corrupt local government municipalities do not rob us of our opportunity to have an economic identity. He further alleged that during the registration process, some individuals acted as fronts for unregistered or illegal tuckshop operators. He pointed to incidents in areas such as Sibokeng, Tshwane, and Emfuleni, where elderly individuals were seen registering on behalf of others. "We are aware that during the registration process, we had people in queues, particularly in the Sibokeng region, the Tshwane local municipality, Emfuleni, where we had elderly people fronting and registering for illegal tuckshop owners. "We are currently compiling a list of all the illegal spaza shops that are operating in townships and then we will air our findings on May 7 in collaboration with Business Culture," He added.
