City backs informal traders through Spaza Shop Support Fund

The City in partnership with the Department of Small Business Development, the Department of Trade, Industry and Competition, the National Empowerment Fund (NEF), and the Small Enterprise Finance Agency (SEFA), has launched a robust financial support programme aimed at uplifting informal businesses. Over R500 million has been allocated to the Spaza Shop Support Programme, which seeks to boost the growth and sustainability of small enterprises operating within the informal sector.

The programme is set to make a meaningful impact by offering financial and infrastructural assistance to qualifying spaza shop owners across the City.

Speaking at the launch, Member of the Mayoral Committee for Development Planning and Real Estate, Alderwoman Nomadlozi Nkosi, encouraged informal traders to seize the opportunity and apply for the funding. “The City and its partners are committed to empowering informal businesses. Our departments are on standby to assist traders with the necessary requirements such as business licenses and trading permits which are key prerequisites for funding eligibility,” said Nkosi.

Tshepo Mathibela from the Department of Small Business Development outlined the application criteria. He confirmed that the support package includes up to R100,000 in the form of stock, assets, and infrastructure which will all be funded at 100%.

He further explained that:

• Traders applying for funding above R80,000 must be registered with the Companies and Intellectual Property Commission (CIPC) and possess a valid tax clearance certificate.
• Traders seeking R80,000 or less are not required to be registered with CIPC.

Applications for the fund can be submitted online at www.spazashopfund.co.za, and more information is available via the call centre at 011 305 8080.

This initiative reaffirms the City’s dedication to strengthening township economies, creating jobs, and fostering inclusive economic development.