City of Johannesburg Welcomes Launch of Spaza Shop Support Fund to Boost Township Economies
Hope is on the rise for Soweto residents and township entrepreneurs across the City of Johannesburg, following the launch of the R500 million Spaza Shop Support Fund, which aims to drive inclusive economic growth and empower small business owners.
City of Johannesburg Executive Mayor, Cllr Dada Morero, welcomed the launch of the fund in Soweto on Tuesday, calling it a vital step in revitalising township economies and creating meaningful opportunities for local entrepreneurs.
The fund was officially launched by the Minister of Trade, Industry and Competition, Mr Parks Tau, and the Minister of Small Business Development, Ms Stella Ndabeni-Abrahams, at the Heritage Hall, Eyethu Shopping Centre. The initiative is a joint effort of the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEDA), and is aimed at supporting South African-owned spaza shops and convenience stores through both financial and non-financial assistance.
Minister Tau stressed the significance of restoring township economies to local control. “By launching the R500 million fund, our government is investing directly in the grassroots of our economy. This initiative will help correct historical injustices and promote the participation of previously excluded communities in the mainstream economy.”
He added that the fund would promote greater economic inclusion and empowerment, particularly among women and young people. “Spaza shops are more than just small businesses – they are engines of local commerce, employment, and community development.”
Mayor Morero echoed these sentiments, highlighting Johannesburg’s pivotal role in national and continental development. “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 strictly for South African citizens, underlining the government’s commitment to transformation. “We must take responsibility for those we are elected to serve. This fund will help us build a more inclusive, lawful, and transformative economic future.”
Gauteng MEC for Finance and Economic Development, Mr Lebogang Maile, further underscored the need for provincial collaboration and investment in local enterprises. “As part of our commitment, 60% of our procurement budget—amounting to over R30 billion annually—will be directed to locally based businesses.”
The Spaza Shop Support Fund, first announced by President Cyril Ramaphosa in November 2024, is a key component of the government’s broader efforts to formalise and strengthen the township and rural retail sectors.
Spaza shop owners and township convenience store operators interested in applying for support can visit www.spazashopfund.co.za or call 011 305 8080 for more information.
