Government Tightens Controls on R100K Spaza Shop Fund 

by Kelebogile Matlou

Minister of Trade, Industry and Competition Parks Tau has outlined a robust oversight framework for the government’s R100 000 Spaza Shop Support Fund, aimed at supporting township-based micro-businesses. Speaking in response to Parliamentary questions from DA MP Anna Maria van Zyl, Tau confirmed that the fund will be administered via the National Empowerment Fund’s (NEF) Rural and Township Fund programme, using the 2025–26 fiscal budget allocation.

The fund is designed to offer financial and non-financial assistance to qualifying South African spaza shop owners to help grow their businesses while ensuring compliance with regulations.

image: Catalyst Fund

Tau said that the NEF processes and tracks applications in real time using an automated Customer Relationship Management system to provide transparency and guard against abuse. The NEF investment committee, which adheres to stringent investment standards and due diligence procedures, must formally approve each payout.

 Furthermore, the NEF’s Finance Division verifies each transaction before releasing funds, and the Post-Investment Unit conducts site visits, assesses receipts, and verifies stock or asset purchases to ensure funds are used appropriately.

To minimize risks, payments are routed directly to approved vendors rather than applicants. Regular monitoring is provided through monthly reports to the NEF Executive Committee, quarterly reports to the Board, and weekly coordination meetings with important departments such as the Department of Small Business Development and SEDFA.

Although it does not provide funding, Tau said, the Department of Cooperative Governance and Traditional Affairs (Cogta) is essential in confirming applicants’ trade permissions and guaranteeing adherence to local laws. Municipalities help by enforcing pertinent bylaws and verifying business licenses.

The spaza shop application database is managed jointly by the NEF and SEDFA via a single digital interface, providing quicker application processing. The Spaza business Support Fund, which was established in response to public health concerns and food safety breaches in 2024, provides up to R100,000 in assistance per business. This includes R40,000 in stock grants, R50,000 in blended financing for renovations, and R10,000 in business training and digital tools, demonstrating the government’s dedication to bolstering the township and informal sector.