Spaza Shop Support Fund attracts lacklustre interest

INFORMAL businesses have been encouraged to apply for support from the R500 million Spaza Shop Support Fund that was launched in April by the Department of Trade, Industry and Competition (DTIC) and the Department of Small Business Development (DSBD) to provide spaza shop owners access to finance, business knowledge, food health and safety and compliance training.  

Daniel Mogotlo, a representative of the Northern Cape Department of Economic Development and Tourism, stated that out of the 69 applications received from local municipalities, only nine had been verified successfully.

“The department has greater collaboration with all the local municipalities, and will work with them in order to assist business people to apply for the fund. We implore more entrepreneurs to approach our office for assistance,” said Mogotlo.

According to DTIC, the initiative will offer R100,000 to each qualifying South African-owned spaza shop.

Additional assistance includes R40,000 for stock, R50,000 for assets and infrastructure and R10,000 for business skills development and training.

During a national outreach programme that was recently hosted at Vaalrivier Hoerskool, Barkly West, by the DTIC, in collaboration with the Department of Small Business Development (DSBD) to raise awareness for the campaign, the acting mayor of Dikgatlong Local Municipality, Kenny Jacobs, welcomed the initiative and believed that growing the local economy would create more jobs.

He encouraged spaza shop owners to ensure that they had valid business licences, as it was a requirement when applying for assistance from the Spaza Shop Support Fund.