The Spaza Shop Support Fund in Limpopo is not reaching as many township and rural businesses as intended. Slow spending, low participation and limited awareness are limiting the fund’s impact.
The fund, launched in Tzaneen in July 2025, was created to provide financial and non-financial support to spaza shop owners as part of the government’s plan to formalise the informal retail sector and boost local economies.
Many spaza shop owners have not applied, while those who did are still waiting for feedback. Municipal processes, including business assessments, application approvals and coordination with provincial and national departments, have been slow and uneven, discouraging applicants.
In rural areas, limited information and concerns over equipment delivery also make some hesitant to apply, while others feel only a few are chosen.
The challenges were discussed during a Limpopo Economic Development, Environment and Tourism (LEDET) workshop that brought together Local Economic Development (LED) managers, municipal officials and representatives from national and provincial government to review progress and identify blockages.
LEDET MEC Tshitereke Matibe said the government is concerned that allocated funding was not being fully utilised.
“We have been concerned about the funding. Money has been allocated, but it is not being spent as it should. We felt it was important to meet and talk about the challenges that are slowing down implementation,” Matibe said.
He added that while Limpopo performed well in 2024 in terms of GDP contribution, further growth depends on the effective use of available resources.
“Our target is that by 2030, economic growth should reach 2.2%. At the moment, we are at 0.9%. This shows that we can grow faster, but we cannot do so if funding is not used properly,” he said.
The R500 million Spaza Shop Support Fund, announced by President Cyril Ramaphosa, offers qualifying spaza shop owners up to R100,000 in support. This includes R40,000 for stock, R50,000 for assets and infrastructure, and R10,000 for training.
Phillip Phaahla from the Department of Small Business Development said participation in Limpopo remains low, with only 56 applications approved since the fund’s launch. He urged municipalities and LED officials to increase outreach and visit communities to ensure spaza shop owners understand how to apply.
On the ground, spaza shop owners say delays and lack of information remain major obstacles.
Mishack Nkuna from Elim said he has been waiting for feedback since submitting his application in August 2025. He said the silence has been frustrating and discouraging.
“I don’t know what happened to my application. It’s been a long time, and I haven’t got any answers. Many of us depend on this fund to improve our businesses, but the waiting is not promising at all,” Nkuna said.
In rural areas, access to information is another challenge. Tshinakaho Nengovhela from Tshino said many spaza shop owners struggle to find reliable information about the fund or the application process.
“Such information is not really available to us since we are staying in rural areas. People don’t know where to get application forms or who to ask for help, so many just give up,” she said.
Meanwhile, the National Empowerment Fund (NEF), which is involved in implementing parts of the programme, recently confirmed that training for approved spaza shop owners has begun in Limpopo’s Vhembe District. The training, which started in late January 2026, targets approved applicants and focuses on improving business management, compliance and sustainability.
However, many applicants are still waiting for responses, highlighting concerns that the fund is only reaching a small number of beneficiaries.
LEDET Director for Economic Empowerment Abbey Mokgahlane said the government is working with informal business leaders and private companies, including Coca-Cola, to provide containers and equipment to spaza shop owners. About 35 pieces of equipment, including fridges, have already been distributed in some municipalities.
He noted, however, that post-assessment findings revealed challenges with the placement and condition of some containers, affecting business operations and access to banking services. He called on municipalities and LED managers to strengthencoordination to ensure support is properly planned and implemented.
