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How to apply for up to R300 000 of the R500 million spaza support fund

Zuko Komisa

Image | @ennie_makhafola/X

The South African government has officially opened applications for its R500 million Spaza Shop Support Fund (SSSF).

This initiative aims to empower eligible spaza shop owners operating within townships and rural areas by providing crucial financial assistance for the improvement, expansion, and long-term sustainability of their businesses.

The fund is specifically designed to increase the participation of South African-owned spaza shops within the country’s retail trade sector, particularly in historically underserved communities. Government is actively encouraging qualifying spaza shop owners to seize this opportunity to access the resources needed to enhance their operations and contribute more effectively to their local economies.

What the support fund seeks to achieve:

•    It provides funding, training, business skills development, and technical support to help businesses compete effectively against larger retailers.
•    Offers funding of up to R300 000 per shop through a combination of grants and low-interest loans.
•    Assists shop owners in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products.
•    Encourage the adoption of digital payment systems, inventory management tools, and financial literacy programs to improve operational efficiency.
•    Facilitate wholesale aggregation, allowing spaza shops to access bulk purchasing advantages and competitive pricing.

What you need to qualify:

•    The owner of the spaza shop must be a South African citizen or naturalised as a South African citizen prior to 1994.
•    Spaza shops must operate within South Africa in rural and township areas and serve local communities.
•    The spaza shop must be registered with the local municipality in accordance with the relevant by-laws and business licensing requirements.
•    Registration with the Companies and Intellectual Property Commission (CIPC) will be optional based on the enterprise’s funding requirement. For enterprises receiving funding above R80 000 registration with CIPC will be required within a period of 6 months.
•    The business must have a valid registration with the South African Revenue Service (SARS) or alternatively be allowed a six-month transitional period.
•    The spaza shop must comply with all other relevant legislative and registration requirements necessary for its operation. (e.g. food preparation and health and safety standards)
•    The owner must actively manage the spaza shop.
•    Funding will prioritise entrepreneurs aged 18-35; female-owned spaza shops will receive priority consideration and businesses owned by individuals with disabilities will be given priority.

The following websites can be used to apply for funding:
•    Spaza Shop Support Fund – www.spazashopfund.co.za
•    NEF – www.nefcorp.co.za
•    SEDFA – https://systems.sefa.org.za/SMMEPortal/
•    Create an account on https://systemsnew.sefa.org.za/SMMEPortal/
•    Fill up all the required information on the registration page, read and accept the terms and conditions and submit.

The contact details for the Spaza Shop Support Fund Call Centre are 011 305 8080 or via email: [email protected]

Contact details for the NEF Call Centre are 0861 843633, SEDFA Call Centre 012 748 9600 or an email can be sent to [email protected].

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Written by: Zuko



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