Guideline to apply for R500 million spaza support fund
Government has called on eligible South African
spaza shop owners in townships and rural areas who want to improve,
expand, and sustain their shops to apply for assistance with the R500
million Spaza Shop Support Fund (SSSF).
This as government
officially opened applications for the fund aimed at increasing the
participation of South African owned spaza shops in the townships and
rural areas retail trade sector.
READ | Government empowers spaza shops
What the support fund seeks to achieve:
• It
provides funding, training, business skills development, and technical
support to help businesses compete effectively against larger retailers.
• Offers funding of up to R300 000 per shop through a combination of grants and low-interest loans.
• Assists shop owners in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products.
• Encourage
the adoption of digital payment systems, inventory management tools,
and financial literacy programs to improve operational efficiency.
• Facilitate wholesale aggregation, allowing spaza shops to access bulk purchasing advantages and competitive pricing.
What you need to qualify:
• The owner of the spaza shop must be a South African citizen or naturalised as a South African citizen prior to 1994.
• Spaza shops must operate within South Africa in rural and township areas and serve local communities.
• The
spaza shop must be registered with the local municipality in accordance
with the relevant by-laws and business licensing requirements.
• Registration
with the Companies and Intellectual Property Commission (CIPC) will be
optional based on the enterprise’s funding requirement. For enterprises
receiving funding above R80 000 registration with CIPC will be required
within a period of 6 months.
• The business must have a valid
registration with the South African Revenue Service (SARS) or
alternatively be allowed a six-month transitional period.
• The
spaza shop must comply with all other relevant legislative and
registration requirements necessary for its operation. (e.g. food
preparation and health and safety standards)
• The owner must actively manage the spaza shop.
• Funding
will prioritise entrepreneurs aged 18-35; female-owned spaza shops will
receive priority consideration and businesses owned by individuals with
disabilities will be given priority.
What does the support package for funding of up to R100 000 entail:
• It includes a stock (grant) of a maximum of R40 000 for the initial purchase of stock via delivery channel partners.
• Assets
and infrastructure (blended grant and loan): a maximum R50 000 for the
upgrading of building infrastructure, systems, refrigeration, shelving
and security.
• A maximum of R100 000 for training programmes that
will include point of sale devices, business skills, digital literacy,
credit health, food safety and business compliance.
What does the support package for funding of above R100 000 up to R300 000 for registered and compliant entities entail:
• It includes a stock (grant) of a maximum of R40 000 for the initial purchase of stock via delivery channel partners.
• A
maximum of R250 000 for a funding split, 50% of the funding will be
provided as a grant, and 50% will be provided as a free-interest loan.
• A
maximum of R100 000 for training programmes that will include point of
sale devices, business skills, digital literacy, credit health, food
safety and business compliance.
• The fund will be jointly
administered by the National Empowerment Fund (NEF) and the Small
Enterprise Development Finance Agency (SEFDA).
• In order to
access the funding, applicants need to apply to the NEF and SEDFA
through the prescribed application process outlined on the relevant
institution's website.
The following websites can be used to apply for funding:
• Spaza Shop Support Fund - www.spazashopfund.co.za
• NEF - www.nefcorp.co.za
• SEDFA - https://systems.sefa.org.za/SMMEPortal/
• Create an account on https://systemsnew.sefa.org.za/SMMEPortal/
• Fill up all the required information on the registration page, read and accept the terms and cconditions and submit.
The contact details for the Spaza Shop Support Fund Call Centre are 011 305 8080 or via email: Spazafund@nefcorp.co.za
Contact
details for the NEF Call Centre are 0861 843633, SEDFA Call Centre 012
748 9600 or an email can be sent to helpline@sefa.org.za.
Working hours: Mon – Fri: 9 am – 10 pm ; Sat: 9 am – 3 pm and Sunday: closed.
-SAnews.gov.za
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