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south africa government fund

spaza shops informal economy
Business

South Africa’s R500-Million Spaza Shop Fund: Between Ambition and Grassroots Reality

by Lerato Mokena
July 28, 2025

South Africa’s R500million spaza shop fund aims to help small township shops become safer and stronger by offering grants and interestfree loans. It encourages shop owners to register their businesses properly and improve food safety and shop conditions. While many owners were excited and applied, most struggled to meet strict paperwork and permit rules. The government now faces the challenge of supporting these hardworking entrepreneurs without losing the community spirit that makes spaza shops special. This fund is a bold step toward modernizing informal trade, but success depends on patience, understanding, and real help from the authorities.

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