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Spaza Shop Fund disburses R180m but compliance gaps persist

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By Thebe Mabanga

The government’s Spaza Shop Support Fund has disbursed about R180 million to 2,369 businesses, but officials say compliance with registration, health and environmental requirements remains a significant challenge.

The Department of Small Business Development and the Department of Trade, Industry and Competition (DTIC) provided an update on the R500 million programme, which is being implemented through the Small Enterprise Development Finance Agency (SEFDA) and the National Empowerment Fund.

The fund was launched in April 2025, following a presidential announcement on a spaza shop registration drive in November 2024 amid concerns over food safety incidents linked to township retail outlets.

Authorities say municipal records initially indicated about 82,000 spaza shops had registered nationally. However, subsequent verification reduced the figure to 44,696 confirmed businesses, of which about 15,000 have obtained trading permits or licences.

“Registration does not equate to licensing,” said Department of Small Business Development Director-General Thulisile Manzini.

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