Spaza shop owners during the launch of the Zimele Traders Fund meant to uplift township and rural spaza shop owners in KwaMashu. It was launched by Edtea MEC Siboniso Duma. Picture: Supplied
Durban — R22 million has been allocated to support South African spaza shop owners, supermarkets and general dealers in KwaZulu-Natal.
The application for the Zimele Traders Fund by the Ithala Development Finance Corporation closes on March 16. Successful applications will be announced on April 15.
The launch of the fund was announced by Economic Development, Tourism and Environmental Affairs MEC, Siboniso Duma, recently.
Duma said spaza shop owners, including supermarkets and general dealers in the province, who are “strictly South Africans”, can apply for a grant in the form of trading stock to the value of R20 000.
“A total of R10m has been set aside for this purpose. We are targeting 500 spaza shops across the province.”
This follows an announcement towards the end of last year, where Duma revealed the department’s intention to embark on an entrepreneurship revolution, focusing on spaza shops in rural areas and townships.
Ithala SOC Limited and Ithala Development Finance Corporation, which are department entities, are deepening support for entrepreneurs in the informal economy.
“Spaza shop owners have long complained about being forced out of the market because they lack the buying power, while their competitors, who are mostly foreigners, buy in bulk which gives them a competitive edge,” Duma said.
The department has reconfigured the bulk buying warehouse at KwaSithebe in Mandeni, at a cost of more than R15m, Duma said.
“We have added a call centre and an online ordering system. The first bulk purchase stock for spaza shops, supermarkets and general dealers is valued at R10m.
“In addition, we have made available 17 trucks to move the stock across the province. This is to create direct access stock, reduce costs of goods and further make them accessible within local municipalities.”
As a permanent arrangement, the department is identifying buildings owned by Ithala across the province to be used as warehouses.
Duma called on eligible spaza shop owners, supermarkets, and general dealers to submit their applications for the grant.
He also announced that through the Zimele Fund, a total of about R11.9m has been set aside for a soft loan of up to R100 000 at 2% interest for a co-operative and 4% fixed interest for a close corporation/Pty Ltd.
For a quotation request, shop owners are asked to email [email protected]
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