Only spaza shops run by SA citizens must benefit from R500m fund - BBC

The Black Business Council (BBC) has called on the government to tighten law enforcement to ensure that spaza shops owned by undocumented migrants do not benefit from a new R500-million fund.

- By Mpho Sibanyoni

The council's concern comes after Minister of Trade, Industry and Competition (DTIC) Parks Tau launched the R500-million Spaza Shop Support Fund this week.

Tau said the fund was aimed at helping the small businesses that generate employment, drive local commerce and channel much-needed income into communities that have long been underserved.

The fund, which will be jointly administered by the National Empowerment Fund and Small Enterprises Development Finance Agency, will provide funding of up to R300000 per shop through a combination of grants and low-interest loans.

According to the Department of Small Business Development, funding may not be used for non-business-related expenses or personal costs unrelated to business development, as well as for the sale of alcoholic beverages. Applicants must own a spaza shop registered with the Companies and Intellectual Property Commission, have a valid South African identity document and a municipal permit.