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The Citizen
18-06-2025
- Business
- The Citizen
Government's Spaza Shop campaign goes to Sedibeng
The Sedibeng District Municipality in Gauteng will be the next stop in the national campaign to create awareness about the Spaza Shop Support Fund. This as an interactive session is set to take place at the City Hall, in the Vereeniging Central Business District, on Friday. This leg of the campaign will offer spaza shop owners and township-based convenience store operators critical information on how to apply for both financial and non-financial support under the R500-million fund that was launched by Trade, Industry and Competition Minister Parks Tau and Small Business Development Minister Stella Ndabeni in April. The fund is aimed at increasing the participation of South African owned spaza shops in the townships and rural areas retail trade sector. The national campaign, spearheaded by the Department of Trade, Industry and Competition (the dtic) and the Department of Small Business Development (DSBD), follows successful engagements held in KwaZulu-Natal, Northern Cape, North West, Mpumalanga and Limpopo. At these events, township-based entrepreneurs gathered in large numbers to learn how they can access support from the fund. The initiative is implemented in partnership with the Small Enterprise Development and Finance Agency (SEDFA) and the National Empowerment Fund (NEF) which are agencies of the DSBD and the dtic, respectively. These entities are responsible for administering the fund. The campaign aims to bolster the township economy by supporting South African-owned spaza shops and other township convenience stores through: • Access to affordable stock via delivery channel partners, • Infrastructure upgrades including shelving, refrigeration and security, Point of Sale devices, • Training programmes covering business skills, digital literacy, compliance, credit health and food safety, and partnerships with local manufacturers, black industrialists and wholesalers to improve supply chain inclusion. 'These efforts are geared toward increasing the competitiveness of township businesses and ensuring they play a significant role in the broader retail sector. 'The campaign also promotes bulk buying and the use of locally produced goods, helping spaza shops lower operating costs while improving access to quality products,' the dtic and the DSBD said in a joint statement on Wednesday. Friday's session is expected to get underway at 9am. – At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
eNCA
03-06-2025
- Business
- eNCA
Only a fraction of the R500 million has been disbursed
JOHANNESBURG - Government's new spaza shop support fund is disbursing money. The fund was set up to help revitalize South African-owned spaza shops and food outlets in townships and rural areas. It came after a national disaster was declared late last year after more than 20 children died from food-borne illnesses after eating food from spaza shops.
IOL News
03-06-2025
- Business
- IOL News
Spaza shop fund under fire: Questions over R500m initiative
The R500m Fund, launched to bolster South African-owned spaza shops in townships and rural areas with stock, infrastructure upgrades, and training, has come under intense scrutiny. Image: Itumeleng English/Independent Newspapers A VIRTUAL briefing by the Department of Small Business Development (DSBD) on the progress of the R500 million Spaza Shop Support Fund descended into chaos last week, with MPs from across the political spectrum lambasting officials for 'lacklustre' responses, unresolved corruption risks, and a controversial 'middlemen' supply model that critics warned could hijack the initiative. The Fund, launched to bolster South African-owned spaza shops in townships and rural areas with stock, infrastructure upgrades, and training, was under intense scrutiny. Only 3 000 to 5 000 applications have been received — a fraction of the estimated 200 000 spaza shops nationwide — raising concerns about exclusion, bureaucratic hurdles, and whether foreign-owned shops were being sidelined. The most explosive revelations centred around the Fund's reliance on three unnamed Delivery Channel Partners (DCPs), private wholesalers tasked with supplying spaza shops. Opposition MPs accused the state of creating a 'monopoly' for connected insiders. 'Why are these DCPs not listed in the presentation? Who are they? What are their markups? This is a middlemen scheme!' charged the DA's Nico Pienaar, demanding the Gazette records detailing their selection. FF+'s Henk van den Berg echoed concerns: 'Do spaza shops have to buy from these DCPs? Who pays them, the Fund or the shop owners?' DSBD Deputy Director-General Qinisile Delwa sidestepped specifics, stating only that DCPs were 'vital intermediaries'. Lwandiso Makupula from the Small Enterprise Development and Finance Agency (Sefda) later admitted that 58% of spaza shops are Somali-owned and 25% Ethiopian-owned, leaving just 8% eligible for the Fund. But MPs were unmoved. 'This is a recipe for fronting. Cartels will use locals as fronts to access funds,' warned the ANC's Peter Mabilo. Pienaar slammed the Fund's 'reckless' exemption of spaza shops from immediate Companies and Intellectual Property Commission (CIPC) and tax registration, calling it a 'free pass for abuse'. 'We're bleeding taxpayers, yet here's a state fund allowing six months' grace before registration. This is anti-formalisation and anti-growth,' he said. DSBD offered no justification, deepening suspicions of lax oversight. With Gauteng dominating applications, rural provinces risk being left behind. 'Your roadshows are failing. Rural spaza shops are lifelines, why aren't they prioritised?' asked chairperson Sonja Boshoff (DA). The ANC's Moses Modise blasted the DSBD's 'pathetic' outreach: 'Where are the community radio ads? The local newspaper campaigns?' Municipal licensing emerged as another crisis point. Many townships lacked digital systems, leaving spaza shops in limbo. 'Some municipalities don't even have licensing capacity. Is DSBD engaging the South African Local Government Association (Salga)?' Boshoff pressed. Delwa conceded that only the Northern Cape was piloting e-licensing, while KwaZulu-Natal and the Western Cape lead. Despite Makupula's assurance that 'misused grants convert to loans', MPs remained sceptical. 'Where are the anti-corruption measures? Who monitors officials?' Boshoff asked. The MK Party's Sarah Mokoena highlighted registration chaos: 'The online system crashes constantly. Shop owners think they're registered when they're not.'
The Citizen
31-05-2025
- Business
- The Citizen
No disruptions to lottery operations as temporary licensee appointed
Ithuba's licence ends today. There will be no disruptions to lottery operations as Trade, Industry and Competition Minister Parks Tau has appointed a temporary licensee. Tau announced on Saturday that he has concluded successful negotiations with Ithuba Holdings and signed a temporary licence agreement for them to operate the National Lottery and Sports Pool for a period of 12 months, effective from 1 June 2025. On 28 May 2025, Tau announced the successful conclusion and appointment of Sizekhaya Holdings (RF) (Pty) Ltd ('Sizekhaya') as the fourth National Lottery and Sports Pools operator. Ithuba's licence ends today. ALSO READ: Big change to Lotto operations: Will tickets be on sale next week? Eight applications to take over from Ithuba Holdings had been on the table. The licence will cover operations for all national games, as well as sports pool products. Sizekhaya's appointment takes effect on 1 June 2026 and requires a transition from the third National Lottery and Sports Pools operations to the fourth National Lottery and Sports Pools Licence operations, said Tau. 'On advice of the National Lotteries Commission, I also authorised that a temporary licensee must be appointed in terms of section 13B of the Lotteries Act, 1997. The temporary licence will ensure the continuation of the operations in the period that the transition is required from the third to the fourth licence operations,' said Tau on Saturday. 'I am pleased that the National Lottery operations will not be interrupted during the transition from third to fourth licence operations and that worthy causes will continue to receive support.' Outgoing lottery operator Ithuba disappointed Following the minister's announcement of the new operator, Ithuba said they were 'deeply disappointed' that the department would negate their contribution to the country's lottery infrastructure. ALSO READ: You may not be able to get a Lotto ticket after today 'As a fully South African-owned and black-empowered operator, Ithuba Lottery has invested significantly in developing the first African central lottery system, owned and developed for Africa by South Africans,' stated the outgoing operator. 'This decision disregards the progress made in building a truly home-grown lottery ecosystem that empowers small businesses, drives local job creation, and channels maximum revenue to good causes,' it added. Ithuba's legal team will consider the legal implications of the decision before deciding on a way forward. NOW READ: SIU is not done with NLC yet, as more corruption allegations emerge Additional reporting by Jarryd Westerdale
IOL News
31-05-2025
- Business
- IOL News
SA faces looming lottery blackout after Pretoria High Court dismisses Ithuba bid
iol South Africa at risk of lottery shutdown after court rejects Ithuba's plea Image: File South Africa may soon experience a temporary lottery blackout, following a significant ruling from the Pretoria High Court that dismissed the National Lotteries Commission's (NLC) urgent application to extend Ithuba Holdings' operating licence beyond its impending expiry on May 31. The court's decision raises serious uncertainty about the future of the national lottery, a vital service that supports numerous community initiatives across the country. On Thursday, IOL News reported that Ithuba, the current operator tasked with managing the national lottery, is now evaluating its legal options in response to the recent decision taken to award the next operating licence to Sizakhaya Holdings. Ithuba has voiced its concern that this decision undermines the considerable advancements it has made in creating a locally focused lottery ecosystem, one that prioritises small business growth, job creation, and maximising revenue for charitable causes. The company expressed particular discontent in a statement released earlier this week, indicating that Tau's decision goes against the principles of localisation and inclusive economic growth detailed in its Request for Proposal. As a fully South African-owned and Black-empowered entity, Ithuba has heavily invested in the development of an African Central Lottery System that is both owned and designed by South Africans to serve the continent. 'Ithuba Holdings has the necessary infrastructure, financial resources and distribution systems to deliver a seamless, secure and uninterrupted National Lottery,' stated Michelle van Trotsenburg, Ithuba's head of marketing and corporate affairs. She added, 'Our game portfolio is locally developed, our operational model prioritises economic inclusion, and our reach extends across urban and rural communities, ensuring accessibility for all South Africans from day one.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Judge Omphemetse Mooki presided over the case, pointing out the deficiencies in the NLC's claims. Mooki argued that the commission's assertion indicating that there would be no lottery operator for a full year following Ithuba's exit was exaggerated, stating, 'It would be a surprise to the court that the minister is unable to appoint an operator, on a temporary basis, for a whole year.' He also emphasised that the minister holds broader discretion in selecting a temporary operator compared to a permanent one, asserting, 'I do not accept that the sky will fall after June 2025 should Ithuba Holdings refuse to sign an agreement to conduct lottery operations as determined in the order of May 21, 2025.' Mooki concluded that the NLC had failed to substantiate its case for the relief sought. Ultimately, while Mooki acknowledged the urgency of the application, he ruled against it, ordering both the National Lotteries Commission and Ithuba to shoulder the legal costs, including those associated with three counsel.
