Township entrepreneurs best act quickly to secure a share of South Africa’s R500-million informal-trader funding. Following government’s crackdown on spaza shops over poisonings last year, all legitimate traders had to register their businesses with local government.
Now, a new Spaza Shop Support Fund (SSSF) promises to support, expand and sustain informal traders with the financial and technical assistance they need to succeed. But they must be compliant …
R500-MILLION INFORMAL-TRADER FUNDING
Applications for the R500-million informal-trader funding opened this week (Monday 21 April 2025) through the Department of Small Business Development (DSBD). All eligible spaza shop owners and informal traders are encouraged to to take advantage of the available funds.
Basically, the R500-million informal-trader funding will help level the playing field against large retail outlets. A maximum of R300 000 is available per applicant through a combination of grants and low-interest loans. Compliance and meeting hygiene and regulatory standards is essential to secure the funding.
Digital payment systems, inventory and accounting management tools are expensive, and financial literacy programmes are offered. Qualifying applicants must be South African citizens or naturalised before 1994. As mentioned, the spaza shop/informal trader must be registered with the local municipality as per the recent business licencing drive.
COMPLIANCE IS KEY
Furthermore, a portion of the R500-million informal-trader funding depends on timeous registration with the South African Revenue Service (SARS). Likewise, the SSSF will prioritise entrepreneurs aged 18-35, as well as female owners and those with disabilities. Business support includes the following:
- R40 000 for the initial purchase of stock.
- R50 000 for upgrading building infrastructure, systems, refrigeration, shelving and security.
- R100 000 for training programmes on sale devices, business skills, digital literacy, credit health, food safety and business compliance.
- R125 000 will be provided as a free-interest loan.
HOW TO APPLY
The National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA) will jointly administer the fund. Applicants for the R500-million informal-trader funding must create an account on the SEFDA SMME Portal. Complete the registration process, accept the terms and conditions, follow all the prompts to submit the application online. Alternatively, you can contact:
- Spaza Shop Support Fund (SSSF): 011 305 8080
- NEF: 086 1843 633
- SEDFA: 012 748 9600
WILL THIS INITIATIVE BOOST THE TOWNSHIP ECONOMY?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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