The fund, which will be jointly administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA), provides critical financial and non-financial support to township businesses, including community convenience stores and spaza shops.

The aim of the fund is to support South African owned township community convenience shops, including spaza shops, in order to increase their participation in the townships and rural areas’ retail trade sector.

“The opening of the applications for the fund marks another milestones in government’s efforts to stimulate the growth of the rural and township economy in the country, particularly by providing the necessary support to the convenience stores and spaza shops that are based in the townships and rural areas.

“Government recognises the important role that small businesses, including those operating in the rural areas and townships, can play in creating jobs, growing our economy and alleviating poverty,” Ndabeni said.

The fund provides various types of support including the initial purchase of stock via delivery channel partners, upgrading of building infrastructure, systems, refrigeration, shelving and security, as well as training programmes which includes Point of Sale devices, business skills, digital literacy, credit health, food safety and business compliance.

Tau pointed out that the fund does not only support economic inclusion but also aligns with national priorities to formalise informal sectors, safeguard consumers and promote local production and said it is a holistic approach to revitalising township economies.

“Beyond individual support, the fund seeks to bolster the broader supply chain by fostering partnerships with local manufacturers, black industrialists and wholesalers.

“Through bulk purchasing arrangements and the promotion of locally produced goods, spaza shops will benefit from reduced costs and increased access to quality products,” Tau said.