Govt to support SA spaza shops with R500m

This move follows the spaza shop registration deadline last Friday, as per President Cyril Ramaphosa's directive.

In December, President Ramaphosa mandated that all spaza shops and food-handling outlets must register after several food poisoning incidents and deaths were linked to unregulated businesses.

Ndabeni revealed on Sunday that new business owners will receive an additional R10,000 to help purchase stock.

"I agree that R500 million is not much considering the size of the spaza shop industry. But its size indicates that people have started trading. That's why I call it an intervention. Other funds, like the township and rural enterprise programme from the department, also assist spaza shops. We are not closing out other interventions. The work continues," she said.

She also acknowledged a major challenge: 60 municipalities lack digital verification systems, which has delayed the approval process for some spaza shops.

"We know the process had challenges, with many municipalities lacking electronic business registration systems," she said.

Ndabeni reassured business owners in these municipalities that those who have followed the correct procedures but are still waiting for approval will not be penalized.

“All those that have adhered and those that are within their constitutional right to do businesses but still awaiting processes in terms of the outcomes led by their municipalities will not be penalized,” she said.

She stressed that it is not the business owners' fault but rather the government’s responsibility to smooth out the process.

“It is not the fault of the business owners; it’s the government’s responsibility to smoothen the process; this is why we are saying those businesses will not be penalised,” she added.

The minister also announced that the National Joint Operational and Intelligence Structure (Natjoints) will update the nation in two weeks on the progress of key initiatives.

"The Natjoints, after receiving all the necessary reports, will review what needs attention and will decide and advise the country on the next steps," she said.

Additionally, the team will release consolidated data on registered spaza shops to the public.

Ndabeni made it clear that compliance will be enforced across the board, regardless of the nationality of the business owner.

“It does not matter whether you are South African or non-South African; compliance is compliance; if you are given access to operate a business, you must make sure that you are compliant with all the laws of our country,” she stated.

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