Government funding open for registered township spaza shops
As township and rural entrepreneurs throughout the country are getting their papers in order to ensure they are compliant with government regulations to run a spaza shop, the great news is that once they have a valid trading permit, they can apply for funding from government institutions.
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Through programmes like the Township and Rural Entrepreneurship Programme (Trep) or the Spaza Shop Support Scheme, entrepreneurs can access much-needed financial relief.
Earlier this month, the government introduced a new standard draft by-law for township economies that offers a simplified permitting and registration process.
“To further support township businesses, municipalities will facilitate workshops, training, and access to essential resources such as infrastructure and markets. This proactive approach helps small business owners improve operational capacity, while also promoting compliance with relevant laws and standards.
“The new standard draft by-law introduces an efficient permit and registration system that provides clear guidelines for businesses, including both physical and online access to application forms,” the Department of Cooperative Governance and Traditional Affairs (COGTA) said earlier this month.
Municipal officials will assist applicants throughout the process, ensuring timely approvals and smooth operations for new and existing businesses.
“This by-law, issued by the Local Government: Municipal Systems Act of 2000, aims to create an enabling environment for small businesses in townships, supporting economic inclusion, job creation, and community empowerment,” the department said.
The full gazette can be accessed at here.
Funding
Township and rural entrepreneurs in need of funding are encouraged to consider applying for the Township and Rural Entrepreneurship Programme (Trep) or the Spaza Shop Support Scheme.
The National Youth Development Agency also has numerous programmes targeted at young people in business.
The Trep targets township and rural-based enterprises owned by entrepreneurs based in the townships or rural areas.
The programme aims to assist entrepreneurs in overcoming the legacy of economic exclusion by creating a conducive environment for entrepreneurial activity and providing dedicated business support to enterprises in rural and township areas including access to funding.
Township or rural-based entrepreneurs must apply for support, including funding, through the common application template from the Small Enterprise Development Agency (Seda), the Small Enterprise Finance Agency (Sefa), the National Empowerment Fund (Nef) and the National Youth Development Agency (Nyda).
Owners of the business must be South African nationals.
How to apply:
• Register on https://smmesa.gov.za/ and complete the information required. Once complete, you will receive an email with your unique smmesa.gov.za reference number.
• The application form is available at https://www.eservices.gov.za
• Create a user profile (account) with the email address used to register on smmesa.gov.za, the email address and smmesa.gov.za reference number are linked to the eservices platform.
• Once registered and logged in, you are able to apply for the programmes available on the application window.
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• Upload the required statutory documents: CIPC documentation, and proof of address as applicable.
• All statutory documents must be submitted before an application is considered.
• In case of application to purchase equipment/s and/or Capex, the applicants must submit quotations/proforma invoices for the equipment/Capex required.
• Applications can also be submitted to az.gro.afes@pert should there be difficulties with the portal.
• Application form can be accessed on the Department of Small Business Development (DSBD) website.
Spaza shop support programme
Sefa’s spaza-shop support programme is targeted at township and rural entrepreneurs who own spaza shops, general dealers or grocery stores.
It is offered in partnership with Nedbank through the Sefa Khula Credit Guarantee Scheme. Each application will be assessed in terms of the following criteria:
• The spaza shop/store must be owner-managed and -operated.
• The owner must have a valid South African identification document.
• S/he must register with the SMMESA (https://www.smmesa.gov.za/).
• Spaza shop owners must hold a licence to trade or a municipal permit – if they do not have one, they must obtain one before they can access support.
• Qualifying owners must go to their nearest Nedbank branch or the Nedbank desk at their nearest Boxer store for assistance in applying.
The following documents will be required:
• A valid South African ID document.
• A valid and original municipal trading licence/permit to trade, or business licence in the case of a general dealer. Copies are not acceptable, and only permits/licences issued by a municipality, not a counsellor, will be accepted.
• Qualifying spaza shop/general dealer owners must register with the Companies and Intellectual Property Commission (CIPC), the South African Revenue Service (Sars) and the Unemployment Insurance Fund (UIF), in cases where they are not already registered with these organisations.
Qualifying owners must:
• Undertake to comply with consumer and customer protection and national disaster management regulations and directions.
• Be willing to submit monthly management account.
• Employ 70% South Africans.
• Have been trading for a minimum of six months.
• Have a valid business bank account (including newly opened).
• Be willing to participate in the bulk-buying scheme as organised by the DSBD or any of its agencies.
• Operate in a township or rural area.
How to qualify for the scheme:
• The spaza shop, general dealer or grocery store owner must go to their nearest Seda office to physically submit the required permits and their ID, or they can submit these documents to Seda online.
• Seda will assist with compliance registration and due diligence.
• The owner will complete the application form, which will be submitted to the Department of Small Business Development for approval.
• If approved, the owner will be advised to collect his/her bank card from a bank (appointed bank).
• Clients can also apply directly to sefa by completing the Small Enterprise Finance Agency (soc) limited (Sefa) spaza shop support facility cardholder application form The application form must be accompanied by all supporting documents. To submit the application form directly to Sefa please send them to az.gro.afes@azaps.
President orders registration of spaza shops
Last week, President Cyril Ramaphosa called for all spaza shops and food-handling facilities to register with their respective municipalities as part of decisive measures to address the recurring food-borne illnesses that have claimed the lives of at least 22 children across the country.
The interventions, the President explained, included getting hazardous pesticides off the street, protection of children from exposure to these substances, and the prevention of future outbreaks.
To ensure compliance, the President has ordered all spaza shops and food-handling facilities must register with their respective municipalities within 21 days.
Ramaphosa further announced the immediate closure of spaza shops implicated in the deaths and stricter regulations to protect communities.