​​Hope is rising among Soweto residents for the growth of their small businesses, as City of Johannesburg Mayor Dada Morero announced that the Spaza Shop Support Fund offers a vital opportunity to boost local economic development.

The R500 million Spaza Shop Support Fund was officially launched in Soweto on Tuesday by the Minister of Trade, Industry and Competition, Parks Tau, alongside the Minister of Small Business Development, Stella Ndabeni-Abrahams. Both ministers emphasized the urgent need for the fund to assist residents of Soweto and similar communities.


Speaking to a packed audience at the Heritage Hall at Eyethu Shopping Centre, Minister Tau highlighted the importance of restoring township economies to local control. He said this initiative would help correct the injustices of the past, which have excluded many South Africans from meaningful participation in the economy.

“By launching the R500 million fund, our government is investing directly in the grassroots of our economy. This initiative will transform the spaza shop landscape in several profound ways," Tau said.

He further emphasized that the fund will promote economic inclusion and empowerment. “With this fund, we are taking a concrete step to formalise and empower the informal sector. By supporting spaza shops, we are enabling entrepreneurs often women and young people to participate fully in the economic process. These small businesses generate employment, drive local commerce, and channel much-needed income into communities that have long been underserved."

The fund will be jointly administered by the National Empowerment Fund and the Small Enterprise Development Finance Agency. It will provide financial and non-financial support to township businesses, including spaza shops and convenience stores.

Mayor Morero reiterated the importance of economic growth in Johannesburg, saying: “We all know that when Johannesburg grows, Gauteng grows. When Gauteng grows, South Africa grows. And when South Africa grows, the African continent grows. That is why this initiative is so important."

Minister Ndabeni-Abrahams emphasized that the fund is exclusively for South African citizens: “It's important that we don't undermine our constitution. We must take responsibility for the people we are elected to serve and protect their interests. We must all work together to build an inclusive economy. When we use the law to bring about transformation, we must not allow anyone to oppose that progress."

Gauteng MEC for Finance and Economic Development Lebogang Maile highlighted the need to build industrial capacity and ensure collaboration across provinces: “We'll focus on building productive capacity across the province. Even with that capacity, if we don't coordinate and align our efforts, it won't be effective. That's why, as part of our commitment, 60% of our procurement budget amounting to over R30 billion annually will go to locally based enterprises."

The aim of the Spaza Shop Support Fund, as announced by President Cyril Ramaphosa in November 2024, is to support South African-owned township convenience stores and spaza shops, increasing their participation in the township and rural retail trade sectors.

Spaza shop owners interested in applying for the fund can visit: https://www.spazashopfund.co.za or call 011 305 8080 for more information.

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Written by Zingiswa Mndayi
09/04/2025

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