Spaza Shop Support Fund – Empowering Township and Rural Community Convenience Shops in South Africa

The Spaza Shop Support Fund, supported by the Department of Small Business Development (DSBD) and the Department of Trade, Industry and Competition (the dtic) and administered through the National Empowerment Fund (NEF) and partners, is designed to support township and rural community convenience shops, including spaza shops, with both financial and non‑financial assistance. The fund aims to refurbish and upgrade shops, enable bulk purchasing and wholesale aggregation, and build the skills and compliance needed for long‑term competitiveness.​

The programme’s core objectives are to:​

• Participation: Increase the involvement and active participation of South African‑owned spaza shops in the retail sector, particularly in townships and remote rural areas.
• Affordability: Provide affordable, safe‑for‑consumption products and services to township and rural residents through locally‑owned spaza shops.
• Support: Strengthen locally owned shops by building capacity, improving operational efficiency and enabling access to competitive pricing through strategic partnerships and bulk purchasing.
• Sustainability: Enhance long‑term business growth, sustainability and competitiveness by helping shops upgrade infrastructure, improve management and plug into formal value chains.

To achieve this, the Fund offers an integrated support package combining grant funding, blended finance and training, focused on:​

• Business growth & development: Training in stock management, digital literacy, financial skills, business compliance, food safety, credit health and POS devices to help shops formalise and compete with larger retailers.
• Operational support & upgrades: Funding for better shelving, refrigeration, security and digital payment/inventory systems, improving shop layout, hygiene and efficiency.
• Local procurement: Encouraging shops to purchase goods and services from accredited local suppliers that meet regulatory standards, reinforcing township and rural supply chains.

Funding may not be used for non‑business or personal expenses, and it cannot be used to finance the sale of alcoholic beverages, aligning with food safety and community welfare objectives.​

Countries eligible to apply

The Spaza Shop Support Fund is a South African government support instrument specifically targeted at township and rural retail in South Africa.​

• Eligible country:
  • South Africa – applicants must be South African spaza or community convenience shop owners operating in South African townships or rural areas.​

National guidelines specify that the shop must be owner‑managed, South African‑owned, hold or obtain a valid trading licence/permit, and be registered on relevant SMME platforms, confirming the domestic and citizen‑focused nature of the scheme.​

Support package and funding structure

The Fund provides up to R100 000 per qualifying shop through a mix of grant and blended grant‑loan funding, alongside non‑financial support:​

• Total support value: Up to R100 000

Breakdown:

1. Stock – Grant (up to R40 000)
   • Purpose: Initial purchase of stock via accredited delivery channel partners.
   • Structure: R40 000 maximum grant purely for stock.​
2. Assets and Infrastructure – Blended grant & loan (up to R50 000)
   • Purpose: Refurbishment and upgrading of the shop’s:
     • Building infrastructure (small structural improvements, layout upgrades)
     • Refrigeration, shelving, security systems and operational systems.
   • Structure: Up to R50 000 as a blend of grant and loan, with terms set by NEF/partners.​
3. Non‑financial Support / Business Management Training (up to R10 000 value)
   • Purpose: Capacity building in:
     • Use of Point of Sale (POS) devices
     • Business skills and digital literacy
     • Credit health and food safety
     • Regulatory and business compliance
   • Structure: R10 000 equivalent in training, coaching and advisory support, not cash.​

In total, this package aims to move spaza shops from survivalist operations to more formal, compliant and efficient businesses capable of leveraging bulk purchasing, digital tools and better infrastructure.​

Eligible businesses and focus

The Fund is aimed at:​

• Township and rural community convenience shops, especially spaza shops.
• Shops that are locally owned by South African citizens and are owner‑managed.
• Businesses willing to:
  • Upgrade infrastructure and adopt POS/digital systems.
  • Purchase from accredited, compliant local suppliers.
  • Participate in training and capacity building.

Non‑eligible uses include personal expenditure, non‑business‑related costs and financing the sale of alcoholic beverages. The Fund’s primary focus is on essentials and compliant retail that improve food safety, affordability and local participation in the retail value chain.​

How to engage / contact details

Shop owners and stakeholders can learn more or initiate the process via the official website and contact channels:​

• Website & “Get Started” contact form:
  • https://www.spazashopfund.co.za (select “Contact Us / Get Started” to express interest)
• Phone:
  • 011 305 8080
• Email:
  • spazafund@nefcorp.co.za
• Administering institution:
  • National Empowerment Fund (NEF), supported by DSBD and the dtic.​

Work hours for telephonic enquiries are typically 08:00 – 16:00, and further details on eligibility, application steps and processes are available on the Fund’s “About” and FAQ pages.