The People Economical Development Forum views the R500 million Spaza Shop Support Fund, which is aimed at building township and rural economies, as a lifeline for grassroots enterprises.
Based in Orange Farm, south of Johannesburg, the forum is a network of cooperatives engaged in farming, manufacturing and technical services such as plumbing and carpentry.
“Our goal is to create an ecosystem where spaza shops are supplied by local producers,” forum chairperson Sphiwe Zingani told Vutivi News on the sidelines of fund’s the launch in Soweto.
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He believes that the initiative has the power to help grow small businesses in impoverished areas like Orange Farm, where unemployment and crime remain deeply entrenched.
“This fund can be the turning point. If we empower our youth with the skills to bake bread, farm fish or install shelves, we will see real transformation,” Zingani said,
“We want to develop our distribution centre, stock it with locally farmed fish, chicken, vegetables, and products like bread and toilet paper things people use daily. That way we generate jobs and keep money circulating within our community.”
The Department of Small Business Development and the Department of Trade, Industry and Competition officially opened applications for the targeted funding programme this week.
The initiative, described by officials as “holistic” and “game-changing,” is designed to uplift small businesses and formalise and strengthen the township economy in its entirety.
Unlike traditional support schemes, this fund adopts 360-degree approach, including capital support through the initial purchase of stock via approved delivery partners, infrastructure upgrades (including refrigeration, shelving and security systems), and intensive skills development.
Beneficiaries will also receive point-of-sale systems, digital literacy training, food safety education and business compliance support.
“This marks another milestone in the government’s ongoing efforts to grow the rural and township economy,” said Small Business Development Minister Stella Tembisa Ndabeni.
“We recognise the indispensable role of small businesses, especially those based in marginalised communities, in job creation and poverty alleviation.”
Trade, Industry and Competition Minister Parks Tau said the fund was aligned with the broader objective of formalising the informal sector and promoting local manufacturing.
“This initiative supports economic inclusion while fostering partnerships with local manufacturers, black industrialists and wholesalers. It is about building a value chain that centres on locally produced goods and reduces operational costs for township retailers,” the minister said.
The response from business and government has been enthusiastic.
City of Joburg speaker Nobuhle Mthembu commended the national government’s intervention, saying it was in response to President Cyril Ramaphosa’s call for inclusive economic growth.
“Our people are not lazy. They are hungry for opportunities and deserve capacitation,” Mthembu said.
“The notion that South Africans are lazy must fall away. What we need is support, and this fund does exactly that. It provides not just funding, but technical assistance and business mentorship.”
She further noted the role of local government in ensuring the success of the initiative.
“As the legislature, it’s our responsibility to create a stable and enabling environment. We must bridge the gap between communities and government programmes and ensure the township economy is no longer sidelined.”
