The South African government has initiated a series of nationwide interactive sessions as part of its R500 million Spaza Shop Support Fund, aimed at assisting small informal traders. To date, R6 million has been disbursed to support spaza shop owners across the country.
Streamlining Compliance and Access to Funding
Benji Seitlhamo, Director of Economic Development in the City of Johannesburg, highlighted the city’s efforts to ensure compliance and facilitate access to the fund. Speaking in an interview, Seitlhamo emphasized the importance of partnerships between local municipalities and the Department of Small Business Development to help shop owners meet regulatory requirements.
“We are assisting spaza shop owners by ensuring they comply with city bylaws, obtain necessary permits, and submit complete documentation,” Seitlhamo explained. The Johannesburg municipality has been conducting regional stakeholder engagements, with sessions already held in Soweto and Orange Farm, and an upcoming session in Alexandra.
Challenges in Application Processing
Despite the fund’s availability, uptake has been slower than expected. As of May 22, only 387 out of 3,269 nationwide applications had been successfully processed. Seitlhamo noted that many applicants face rejections due to non-compliance, such as missing business registration documents or incomplete submissions.
“Some applicants submit invalid or fraudulent documents, which we are addressing,” he said. “Our goal is to expedite approvals for compliant businesses so they can access this crucial funding.”
Roadshows and Direct Assistance
The interactive sessions bring together multiple city departments—including Development Planning, Emergency Management Services (Fire Department), and Environmental Health—to help shop owners secure permits on the spot. Additionally, the Department of Small Business Development assists eligible applicants in submitting their funding requests immediately.
Seitlhamo acknowledged that while the initiative primarily targets spaza shops, other small businesses, such as hair salons and restaurants, have also benefited from the support.
Looking Ahead
The government plans to continue these engagements until the end of June, after which an updated report on application approvals will be released. Seitlhamo expressed hope that the numbers would improve as more shop owners become compliant.
“We want as many eligible businesses as possible to access this fund,” he said. “The city is committed to supporting small enterprises, which are vital for economic growth and job creation.”
The Spaza Shop Support Fund remains a key intervention to bolster South Africa’s informal sector, with further sessions expected in other provinces in the coming weeks.