The Department of Small Business Development (DSBD) and the Small Enterprise Development Finance Agency (SEDFA) provided an update to the nation on the Spaza Shop Support Fund on Friday, 29 May 2026. Entrepreneurs and aspiring spaza shop owners are encouraged to apply for support through the official Spaza Shop Fund website at spazashopfund.co.za, where they can access information on eligibility requirements, the application process, and available funding and business support opportunities. Applications remain open. The fund is aimed at empowering locally owned businesses, creating economic opportunities, and strengthening township and rural economies across South Africa.

The R500 million Spaza Shop Support Fund was launched in April 2025 by the Ministers of Small Business Development (DSBD) and Trade, Industry and Competition (dtic).  The Fund aims to support South African owned community convenience shops, including spaza shops, to increase their participation in the township and rural areas’ retail trade sector.   As part of the overall fund structure, the Small Enterprise Development and Finance Agency (SEDFA) is responsible for administering R150 million, which is allocated specifically for stock and Point-of-Sale devices to qualifying spaza shop owners.   SEDFA continues to make steady progress in the Fundimplementation. As of 22 May 2026, a total of 4,522 complete applications had been received nationally. Of these, 4,240 have already been assessed. The assessment process has revealed that approximately 58% of applicants are linked to valid business licences or temporary permits issued by municipalities.   The verification process further identified a number of compliance-related challenges. Approximately 350 applications could not proceed due to issues such as non-existent businesses, ownership discrepancies, and inconsistencies between applicants and actual operators of the businesses.   Despite these challenges, significant progress has been made in approving qualifying applications. To date, 1,316 applications across all nine provinces have been approved for funding support to the value of R79.6 million SEDFA continues to work closely with municipalities to verify licences, process outstanding applications, and ensure that the remaining R70.4 million SEDFA contribution is fully utilised to support qualifying enterprises.   In addition, ongoing engagements and support interventions are being undertaken to assist applicants in addressing compliance requirements and unlocking access to funding support.Accordingly, SEDFA will once again embark on a nationwide outreach and awareness programme from June 2026 to encourage more qualifying spaza shop owners to apply and to assist enterprises requiring compliance support.   The Spaza Shop Support Fund forms part of government’s broader commitment to strengthening township economies, supporting informal businesses, and expanding economic participation within local communities. It is important to note that the Fund prioritisesSouth African-owned spaza shops, with strict verification measures in place to prevent fronting and abuse. Only applicants who meet ownership, compliance, and operational requirements, as well as possess valid trading permits and licenses are approved.