Govt Reveals R500m Spaza Shop Fund's Requirements, Amounts And How To Apply

The government has provided further details of the R500 million Spaza Shop Fund, including how to apply, how much applicants can get and the eligibility criteria/requirements.

Small Business Development Minister Stella Ndabeni and her Trade, Industry and Competition counterpart Parks Tau launched the fund in Soweto earlier this week.

"These small businesses generate employment , drive local commerce and channel much-needed income into communities that have long been underserved, Tau said .

"We are committed to ensuring that every spaza shop that benefits from this fund also gains access to the necessary health and safety training and resources.

According to the Funds website , spaza shops and their owners must meet the following eligibility requirements to qualify for funding:

• 100 South African-owned: The shops owner must be a South African citizen or naturalised as a South African citizen prior to 1994.
• Location: Shops must operate in rural and township areas and serve local communities.
• Municipal registration: The shop must be registered with the local municipality.
• CIPC registration: Registration with the Companies and Intellectual Property Commission CIPC is optional based on funding requirement. Businesses receiving funding above R80,000 must register with CIPC within six months.
• SARS registration: The business must have a valid registration with the South African Revenue Service SARS. Alternatively, it may get a six-month transitional period.
• Compliance with legislation: The shop must comply with all other relevant legislative and registration requirements necessary for its operation, such as food preparation and health and safety standards.
• Owner management: The owner must actively manage the spaza shop.

The Fund will also give certain groups in society priority consideration.

These include:

• Youth: Entrepreneurs aged 18-35 years old.
• Women-owned shops.
• Shops owned by people with disabilities.

Applicants can get up to R250,000 in support as follows:

• Stock grant: Up to R40,000 for the initial purchase of stock via delivery channel partners.
• Assets and infrastructure blended grant and loan: Up to R50,000 for upgrading building infrastructure, systems refrigeration, shelving, security etc.
• Blended finance: Up to R250,000 - 50 as a grant and 50 as an interest-free loan.
• Non-financial support/business management training: Up to R100,000.

To apply, visit SEFAs online portal here and register an account, if you do not have one already.

Click Create an Account and then fill in your details, which include names, ID number, race, email and cellphone number. You must also enter a password and accept the terms and conditions.