By Bulelani Balabala | Township Entrepreneurs Agency
The recent launch of the R500 million Spaza Shop Support Fund by the Department of Trade, Industry and Competition marks a turning point in the country’s approach to the informal economy. For years, township-based businesses have operated on the fringes of formal economic systems, under-resourced, under-recognised and often overlooked.
Now, with this fund, government has made a strong statement: the township economy matters.
What the Fund Offers
Spearheaded by Minister Parks Tau, the fund is designed to support South African-owned spaza shops operating in rural and township areas. The aim is to strengthen local convenience stores by providing a comprehensive support package, including:
Up to R100,000 in funding for informal or semi-formal traders
Up to R300,000 for registered, compliant businesses
A mix of grants and low-interest loans
Access to business infrastructure, stock, training, and support systems
The funding doesn’t go straight into a business owner’s hands. Instead, it is channeled through delivery partners and accredited service providers. Stock is delivered directly, renovations are carried out by vetted contractors, and business tools such as point-of-sale systems are installed through structured partnerships.
This ensures the funding is used correctly, while giving spaza shop owners real business value.
Why It Matters
Spaza shops are more than just retail outlets. They are community anchors, run by enterprising individuals, many of them women and youth who serve local residents daily. They circulate money in the local economy, provide employment and offer critical access to basic goods.
But these businesses have often struggled to grow due to a lack of:
Affordable capital
Business support
Access to reliable stock and infrastructure
Digital and compliance tools
This fund seeks to close that gap.
Our Role: TEA to Launch Funding Readiness Workshops
As the Township Entrepreneurs Agency (TEA), we’ve spent years walking alongside township businesses, equipping them with tools to grow and thrive. We see this fund not just as a once-off opportunity, but a chance to build long-term readiness in the sector. Which is why we have decided to to use our resources and tools to support the government in their effort to support township businesses.
That’s why we’re rolling out Spaza Shop Fund Readiness Workshops.
These workshops will:
Unpack how the funding works
Help businesses meet the requirements (registration, compliance, etc.)
Connect entrepreneurs to CIPC, SARS, municipal registration support
Guide them on digital tools and inventory systems
Prepare business owners to apply confidently and successfully
We believe funding without readiness is wasted opportunity. These workshops are our way of ensuring that township entrepreneurs don’t just qualify, they excel.
Changing the Narrative
Our mission at TEA has always been to reposition the township, not as a site of poverty, but as a hub of potential. This fund validates that view, and we’re committed to making sure every deserving spaza shop owner is empowered to benefit.
We invite partners, corporate stakeholders, and local government to work with us to reach every corner of the township economy.
For more information on the fund and to apply:
Visit: www.spazashopfund.co.za
Call: 011 305 8080 Or apply via NEF (www.nefcorp.co.za) and SEFA (www.sefa.org.za)
To host a Spaza Shop Fund Readiness Workshop in your area, reach out to the Township Entrepreneurs Agency directly.
You can get in touch with TEA on info@joinusfortea.co.za and 011 572 1033
