Small Business Development Minister Stella Ndabeni has announced a R500 million spaza shop support fund, following the closure of the registration period on 28 February 2025. This initiative comes in response to the deaths of children linked to food items purchased at spaza shops, which prompted a nationwide re-registration drive.
Small Business Development Minister Stella Ndabeni outlines initiatives to ensure compliance and rebuild a competitive spaza shop sector following tragic food poisoning incidents.
Key Points:
- Registration Deadline and Challenges:
- The registration deadline for spaza shops was initially set for mid-December 2024 but was extended to 28 February 2025 due to widespread challenges.
- Many municipalities lacked electronic business registration systems, causing delays and frustration for applicants.
- Minister Ndabeni assured that those who applied but are still awaiting registration are within their rights to continue operating and will not be penalized.
- R500 million spaza shop support fund:
- The fund, set to launch in two weeks, aims to support township convenience shops, including spaza stores.
- The Department of Small Business Development will contribute R150 million, while the Department of Trade, Industry and Competition will provide R350 million.
- The fund will focus on bulk purchasing through buying groups, business capacity building, and enhancing market competitiveness.
- Compliance and Non-Financial Support:
- Ndabeni emphasized that compliance with food safety standards is mandatory for all spaza shops, regardless of ownership.
- Over the next six months, the department will provide non-financial support to help spaza shops achieve compliance, including training in inventory management and the provision of point-of-sale systems.
- Reactions from the Spaza Shop Association:
- Kgothatso Ramautswa, President of the South African Spaza Shop Association, expressed concerns over the registration process, citing issues such as the lack of town planners and standardized municipal by-laws.
- Ramautswa called for extended deadlines and more engagement between the government and informal traders to address these challenges effectively.
- Gauteng’s Registration Statistics:
- Gauteng MEC for Economic Development Lebogang Maile reported 17,617 registration applications, including 7,107 from foreign nationals.
- Inspections revealed 15,478 non-compliant facilities, with 498 closed immediately.
Conclusion:
The R500 million spaza shop support fund and ongoing initiatives aim to ensure compliance with food safety standards and rebuild a competitive spaza shop sector. However, challenges remain, particularly in addressing the logistical and bureaucratic hurdles faced by spaza shop owners. The government’s commitment to supporting these small businesses will be crucial in preventing future tragedies and fostering a compliant, thriving informal economy.
