Spaza-Shop Support Programme

Spaza-Shop Support Programme


The spaza-shop support programme is targeted at township and rural entrepreneurs who own spaza shops, general dealers or grocery stores.

It is offered in partnership with Nedbank through the sefa Khula Credit Guarantee Scheme.


The objectives of the scheme are to:

  • Formalise informal businesses into micro-enterprises

  • Facilitate the banking of the unbanked

  • Build a reliable database for future government planning and support

  • Support opportunities for self-employment and job creation at economic entry level while improving the circulation of money within townships and rural areas

  • Realise the potential of spaza shops to serve as a market for locally manufactured goods through the inclusion of products manufactured by SMMEs, including cooperatives supported by the DSBD

  • Strengthen spaza shops as local convenience centres for access to basic goods

  • Facilitate support programmes to help make spaza shops profitable and successful

  • Create opportunities for spaza shops to be an intermediate step to the formal economy

Who qualifies for the scheme?

Spaza shop, general dealer or grocery store owners who are South African and are based in a township or a rural area, and hold a valid trading permit (including a temporary one) or business licence (in the case of a general dealer).

Qualifying criteria

Each application will be assessed in terms of the following criteria:

  • The spaza shop/store must be owner-managed and -operated

  • The owner must have a valid South African identification document

  • S/he must register with the SMMESA (

  • Spaza shop owners must hold a licence to trade or a municipal permit – if they do not have one, they must obtain one before they can access support

  • Qualifying owners must go to their nearest Nedbank branch or the Nedbank desk at their nearest Boxer store for assistance in applying. The following documents will be required:

  • A valid South African ID document

  • A valid and original municipal trading licence/permit to trade, or business licence in the case of a general dealer. Copies are not acceptable, and only permits/licences issued by a municipality, not a counsellor, will be accepted.

  • Qualifying spaza shop/general dealer owners must register with the Companies and Intellectual Property Commission (CIPC), the South African Revenue Service (Sars) and the Unemployment Insurance Fund (UIF), in cases where they are not already registered with these organisations

  • Qualifying owners must:
    • Undertake to comply with consumer and customer protection and national disaster management regulations and directions

    • Be willing to submit monthly management account

    • Employ 70% South Africans

    • Have been trading for a minimum of six months

    • Have a valid business bank account (including newly opened)

    • Be willing to participate in the bulk-buying scheme as organised by the DSBD or any of its agencies

    • Operate in a township or rural area

How to qualify for the scheme

  • The spaza shop, general dealer or grocery store owner must go to their nearest SEDA office to physically submit the required permits and their ID, or they can submit these documents to SEDA online
  • SEDA will assist with compliance registration and due diligence

  • The owner will complete the application form, which will be submitted to the DSBD for approval

  • If approved, the owner will be advised to collect his/her bank card from a bank(appointed bank)

Application process

Participating owners will be required to commit to:

  • Buying products from the DSBD-approved basket of goods – which will change from time to time – in particular products produced by South African SMMEs and cooperatives

  • Operating a business banking account and participate in the Seda-supported business management support programme, which includes assistance with inventory management and stock control, and preparation of management and annual financial statements

  • Upholding environmental health and food safety standards and the guidelines of the Department of Health, including:
    • Sanitising before and after serving each customer

    • Disinfecting service counters

    • Maintaining the applicable social distance between customers, and the customer and service point

    • No sale of counterfeit goods and stale/expired foodstuff

    • Not use trading spaces as sleeping quarters

The scheme will allow spaza owners who wish to apply for the full amount of R15 000 (70% grant and 30% loan) as a credit facility to be able to do so at respective participating banks, with the full backing of the supplier credit guarantee facility.

Support available under the scheme

Various forms of support are available under the scheme, including:

  • Access to working capital investment and a revolving credit facility that is backed by the Khula Credit Guarantee Scheme of sefa, in partnership with Nedbank, Standard Bank South Africa, SEDA and the Department of Small Business Development; The facility is available at participating wholesalers countrywide. The list of participating wholesalers will be shared with approved spaza and general dealer owners

  • Business management support, which includes assistance with basic financial management from financial/business graduates, who will be assigned to give dedicated support to the business over a 24-month period

  • Legal compliance, which includes assistance registering with the CIPC, Sars and the UIF, and assistance with other compliance requirements that may be necessary for participation in the scheme

For more information, watch the video or read the brochure below.

Spaza-Shop Support Programme brochure (1.961 MB)