Latest news with #NationalEmpowermentFund
IOL News
09-07-2025
- Business
- IOL News
Reclaiming the spaza shop economy: South Africans encouraged to access R500 million fund
South African spaza shop owners have been urged to take advantage of the R500 million Spaza Shop Fund which is designed to support informal retail businesses with essential financial and non-financial resources. South Africans are being urged to reclaim the township and rural spaza shop economy by taking advantage of the R500 million Spaza Shop Fund, which aims to revitalise informal retail businesses through financial and non-financial support. This call was made by Siziwe Zulu, the Spaza Shop Project Manager at the National Empowerment Fund (NEF), during a community outreach session held at the Taung Depot Hall in the North West. The event formed part of a national campaign to educate spaza shop owners on accessing government support through the initiative. 'We encourage those who have not registered to contact us as we can assist them through non-financial support in preparation for other spaza funding programs,' said Zulu. 'The main aim is to provide spaza owners with an opportunity to learn more about applying for the fund and which requirements they will be expected to comply with.'
The Citizen
17-06-2025
- Business
- The Citizen
Parks Tau details oversight framework for R100k spaza shop support fund
The minister explained that disbursements from the Spaza Shop Support Fund are made only after formal approval by the NEF's Investment Committee. Minister of Trade, Industry and Competition Parks Tau has provided responses to questions about the oversight mechanisms and departmental roles governing the government's R100,000 Spaza Shop Support Fund. He revealed a comprehensive framework involving multiple agencies and automated monitoring systems. Responding to questions from Democratic Alliance MP Anna Maria van Zyl, Tau outlined the administrative structure behind the fund's disbursement. He clarified that his department's contribution will be channelled through the National Empowerment Fund's Rural and Township Fund programme using the 2025-26 fiscal year budget allocation. The minister's responses shed light on the monitoring mechanisms designed to prevent fund misuse and ensure transparency in a programme that has attracted significant attention for its support of township entrepreneurs. Spaza shop fund automated monitoring and committee oversight Tau revealed that the NEF has put in motion multiple supervision mechanisms to monitor fund payments. 'I have been advised by the National Empowerment Fund (NEF) as follows,' Tau stated, before detailing the comprehensive framework. He said that all applications are processed through the NEF's automated Customer Relationship Management system. The system tracks application progress and provides real-time daily reports on fund status and approvals. The minister further explained that disbursements only proceed following formal approval from the NEF's Investment Committee. The committee 'evaluates each application for funding following established investment criteria and due diligence protocols that are aligned to the Spaza Shop Support Fund criteria'. Regarding the finance verification processes, Tau revealed that the NEF's Finance Division implements internal financial controls that verify and validate all disbursements before funds are released. 'These controls ensure that disbursements are made in accordance with the approved terms and conditions of Spaza Shop Support Fund,' he clarified. ALSO READ: Government pays R6 million from R500 million Spaza Shop Fund Spaza shop post-investment monitoring and direct payments Tau detailed the post-disbursement oversight measures, explaining that the NEF's Post-Investment Unit conducts reviews to confirm funds have been utilised according to approved business plans and conditions. 'This includes site visits, assessment of receipts, and verification of stock or asset purchases,' he said. The minister explained the system of direct payments. He said to minimise misuse risks, disbursements are made directly to vetted and pre-approved suppliers for the procurement of goods and services required by beneficiaries, rather than to the clients themselves. The oversight framework includes monthly reporting to the NEF Executive Committee for operational monitoring, quarterly reporting to the NEF Board for strategic oversight. It also includes weekly coordination meetings between the NEF, the Department of Small Business Development, the DTIC, and Sedfa. ALSO READ: Spaza shops ask for more than R32m worth of stock Cogta's supporting role clarified The minister clarified the Department of Cooperative Governance and Traditional Affairs' role in the programme. 'Cogta is not responsible for the disbursement of funds under the Spaza Shop Support Fund,' said Tau. He added that the spaza shops' payments are managed by his department and the Department of Small Business Development through their agencies. According to Tau, Cogta's role focuses on municipal oversight. Municipalities are responsible for developing and enforcing local legislation and bylaws governing spaza shop operations. This includes trading permits and business licences. Through municipalities, Cogta assists the NEF and SEDFA by verifying that each applicant possesses a valid trading permit or business licence and complies with relevant municipal regulations and by-laws. Tau emphasised that 'Cogta's involvement strengthens the integrity of the fund by ensuring that only compliant and duly licensed businesses benefit from the financial support.' Tau confirmed that the NEF and SEDFA will be responsible for overseeing the Spaza Shop database. The entities adopted a shared portal across both their systems, with regular meetings held to coordinate application processing. ALSO READ: Government offers R500m spaza shop support fund – Here's what you need to know Spaza shop fund context The Spaza Shop Support Fund was established for South African spaza shop owners seeking to enhance and expand their businesses. Those interested in boosting their businesses can now apply for financial and technical assistance through the government's fund. Before the introduction of the fund, spaza shop registrations nationwide were introduced to prevent the sale of hazardous food to children, following multiple food poisoning incidents in 2024. The government's Spaza Shop Support Fund offers up to R100,000 in financial and non-financial support to spaza shop owners. The initiative is a part of its commitment to township and informal economy development. The support package includes: R40,000 in grant funding for stock, R50,000 in blended grant and loan financing for shop upgrades, including fridges and shelving, and R10,000 worth of business training and digital tools. 🟢 Spaza Shop Support Programme – Apply for Assistance Up to R100 000 🟢 The Government of South Africa, through its commitment to township and informal economy development, invites spaza shop owners to apply for financial and non-financial support of up to R100 000. Support… — South African Government (@GovernmentZA) June 8, 2025 NOW READ: Over 30K spaza shop applications were from foreign nationals
Zawya
30-05-2025
- Business
- Zawya
South Africa: Govt pays $335,634 from spaza shop fund
Government has so far disbursed R6m out of R500m in funding through the Spaza Shop Support Fund (SSSF) to eligible spaza shops and other food-handling outlets. The fund, aimed at increasing the participation of South African-owned spaza shops in the townships and rural areas retail trade sector, was launched last month. 'This is moving in a slow pace due to all the parties that are involved in coordinating the work, which includes inspections, verification of citizenship as well as site and health inspections. 'The fund will assist shop owners that met the deadline for the registration of an operating permit,' Minister of Small Business Development Stella Tembisa Ndabeni said during a media briefing in Pretoria on Thursday, 29 May. It offers funding of up to R300,000 per shop through a combination of grants and low-interest loans. In addition, it allocates funding specifically for initial stock purchases, infrastructure improvements, business development tools, and Point of Sale (POS) system adoption. The fund is being administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (Sefda). Through the fund, shop owners will be provided with assistance in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products. Inaugural Global SME Ministerial Meeting Marking the countdown to the first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting to be hosted by the South African government and the United Nations Small Business Agency in Johannesburg, the Minister shared the vision and expected outcomes of the Ministerial meeting. Taking place from 22-24 July 2025, the Ministerial Meeting will serve as a dedicated platform for ministers and officials responsible for Micro, Small and Medium-sized Enterprises (MSMEs) to share strategic insights, shape future policies, and foster global consensus on the small business agenda. Countries from around the world have confirmed their participation, including Brazil, Cambodia, Costa Rica, Egypt, Ethiopia, Kenya, India, Indonesia and Switzerland, among others. Nearly 50 countries are expected to be at the event. 'As a country, through the Department of Small Business Development, we are steadfast in our commitment to create a more enabling legislative and policy environment that empowers small businesses to grow, scale up, and compete on the global stage. 'In addition, we will galvanize a call-to-action to influence dialogues and decisions at the Group Twenty (G20) Summit under South Africa's leadership. We are unequivocal that the G20 needs a sharper MSME focus with its own dedicated Working Group, and we will use this Global Ministerial to bolster this position. 'We will also use this Global Ministerial to develop and activate strong partnerships across governments, multilateral institutions, and businesses. We do not want a talk- shop. We will emerge with practical initiatives that strengthen the global MSME support eco-system, as well as country-level partnerships that translate policy into action,' the Minister said. Startup20 Task Force The Department of Small Business Development will also be hosting the Startup20 Task Force planning sessions in the days preceding the Ministerial. This will provide the opportunity for Task Force leaders to share thinking with global MSME leaders beyond the G20. 'The challenges that small businesses face is vast and cannot be tackled by any one nation alone. Thus, I passionately urge governments, international agencies, development partners, and the private sector to join us in strengthening MSME ecosystems. 'Let us deepen our regional and global cooperation, share knowledge, and uplift MSMEs especially those led by women, youth, and persons with disabilities,' the Minister said. South Africa assumed the G20 Presidency from 1 December 2024 to 30 November 2025 under the theme: Solidarity, Equality and Sustainability.
The Citizen
30-05-2025
- Business
- The Citizen
Government pays R6 Million from R500 million Spaza Shop Fund
Only a fraction of the fund has reached township and rural spaza shop traders as verification delays slow disbursements The department of small business development has so far disbursed R6 million from the R500 million Spaza Shop Support Fund (SSSF). This is aimed at supporting South African-owned spaza shops and food-handling outlets in townships and rural areas. Launched last month, the fund is designed to provide financial assistance of up to R300 000 per shop through a mix of grants and low-interest loans. However, according to small business development minister Stella Ndabeni, on Thursday, the implementation has been slower than expected. 'This is moving at a slow pace due to all the parties that are involved in coordinating the work, which includes inspections and verification of citizenship, as well as site and health inspections,' she said. Focus on compliance and sustainability To qualify for funding, shop owners had to register for an operating permit before the deadline. The money can be used for stock purchases, infrastructure improvements, business development tools and the adoption of point of sale (POS) systems. 'The fund will assist shop owners that met the deadline for the registration of an operating permit,' Ndabeni said. The initiative is administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA) and includes support to help businesses meet hygiene and regulatory standards. ALSO READ: Illegal spaza shops 'still proliferate' despite warnings Global SME Summit set for July The Minister also announced that South Africa will host the first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting in Johannesburg from 22 to 24 July 2025. The event, co-organised with the United Nations Small Business Agency, will see participation from nearly 50 countries, including Brazil, Kenya, India and Switzerland. 'We are steadfast in our commitment to create a more enabling legislative and policy environment that empowers small businesses to grow, scale up and compete on the global stage,' said Ndabeni. She said the meeting would help shape global small business policy and push for the formation of a dedicated MSME Working Group under the G20 during South Africa's presidency. 'We do not want a talk shop. We will emerge with practical initiatives that strengthen the global MSME support eco-system,' she added. NOW READ: Spaza shops ask for more than R32m worth of stock
IOL News
27-05-2025
- Business
- IOL News
Joburg launches outreach drive to help spaza shops access R500 million fund
The City of Johannesburg, in partnership with the Department of Small Business Development, has launched a series of outreach sessions aimed at helping spaza shop owners The City of Johannesburg, in partnership with the Department of Small Business Development, has launched a series of outreach sessions aimed at helping spaza shop owners access the R500 million Spaza Shop Support Fund. Initially announced by President Cyril Ramaphosa in November 2024, the fund is administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEDA) and aims to support township businesses, including spaza shops and convenience stores, through a mix of grants and interest-free loans. IOL previously reported that the Portfolio Committee on Small Business Development has expressed frustration over the limited progress in approving applications for the R500 million Spaza Shop Support Fund, with fewer than 400 out of more than 3,200 submissions being processed since the fund was introduced in April.
