Spaza shop fund reaches only a fraction of intended beneficiaries, MPs told
MPs demanded greater transparency from the department and its funding agency.
The Spaza Shop Support Fund, launched eight months ago, has disbursed just a small portion of its intended R500 million. Debriefing the committee on small business development, the department's deputy director-general Qinisile Delwa informed that by July 2026, 5,327 applications were received, of which 5,064 were assessed. The Small Enterprise Development and Finance Agency approved 1,386 applications nationwide, worth R83.9 million, with R57 million disbursed to 930 spaza shop owners.
However, many applications failed due to non-existent businesses or discrepancies between applicants and operators. ANC MP Matsholo Mmolotsane expressed concern about the rollout pace, stating that the department was not doing enough in outreach and funding. The department admitted to misidentification of applicants and operators, which were flagged as 'fronting' by the public protector, but none of these applications proceeded.
The department shared responsibility for verifying municipal licensing data, stating that municipal records' completeness and accuracy are crucial. Despite approvals, only 1,026 spaza shop owners have received training, covering device and stock system use, business concepts, food hygiene, safety, and customer care. The gap between approved and trained beneficiaries remains unexplained, with officials citing data protection requirements as the reason for not releasing a full list of beneficiaries.
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