Spaza Shop Support Fund
Spaza Shop Support Fund is a R500m public fund announced by the Department of Trade, Industry and Competition (dtic) under minister Parks Tau. It is currently stalled: only R47m (9.4%) has been disbursed, leaving R453m undisbursed. Of 100 000 intended beneficiaries, 1 200 (1%) have been reached.
Announced
R500m
Disbursed
R47m
Undisbursed
R453m
Beneficiaries reached: 1 200 of 100 000 targeted
R500 million was announced in November 2024 to formalise, support and grow township spaza shops following a wave of food safety concerns and complaints about foreign-owned shops outcompeting locals. By early 2026, less than 10% of the fund had reached intended beneficiaries. SEDA (Small Enterprise Development Agency) and the dtic were tasked with administration but registration and compliance requirements excluded most informal operators.
The key question
Where is the remaining R453 million and when will it reach spaza owners?
Official response
The dtic stated in February 2026 that 1,247 spaza shops had been registered and supported, with processing of additional applications ongoing. No timeline was given for full disbursement.
Timeline — 5 tracked events
President Ramaphosa announces R500m Spaza Fund
Following a wave of child poisoning incidents linked to unlicensed spaza shops, President Ramaphosa announced R500 million to formalise and support township spaza shops. SEDA and dtic were tasked with administration.
Presidency press statement →Registration portal opens — compliance barriers emerge
SEDA opens registration portal requiring spaza owners to provide business registration, health certificates, and bank accounts. Critics immediately note that most informal operators lack these documents, effectively excluding the most vulnerable beneficiaries.
Daily Maverick →Parliamentary questions reveal slow uptake
DA and EFF MPs question dtic minister on disbursement progress. Minister confirms fewer than 500 shops have received support in the first quarter. Opposition calls for independent audit.
Hansard — National Assembly →AGSA flags administrative bottlenecks
Auditor-General's interim review flags that complex compliance requirements, slow verification processes and inadequate SEDA staffing have created significant disbursement delays. Recommends simplified application process for micro-enterprises.
AGSA interim review →dtic confirms only R47m disbursed — 9.4% of fund
In response to parliamentary questions, the dtic confirms that R47 million has been disbursed to approximately 1,247 spaza shops — 1.2% of the 100,000 targeted beneficiaries. Minister Parks Tau says the department is "streamlining" the application process.
Parliamentary Q&A — National Assembly →Sources
Other tracked funds
Figures are compiled from official Treasury, AGSA, SIU, SASSA and departmental sources cited in the timeline above. Last updated 1 March 2026. Disbursement figures reflect the most recent public reporting and may lag real-time spending.