City of Ekurhuleni Supports Informal Traders with Spaza Shop Support Fund

Over R500 Million Allocated to Boost Spaza Shops Across Ekurhuleni

City of Ekurhuleni Backs Township Traders with Spaza Shop Support Fund

In a bold move to revitalise township economies and empower informal businesses, the City of Ekurhuleni has unveiled its Spaza Shop Support Fund, a dynamic initiative valued at over R500 million. This collaborative programme involves key national stakeholders, including the Department of Small Business Development, the Department of Trade, Industry and Competition, the National Empowerment Fund (NEF), and the Small Enterprise Finance Agency (SEFA).

The fund aims to strengthen the backbone of township trade — the spaza shop. These micro-enterprises serve as crucial lifelines in many communities, and the financial boost is expected to increase their sustainability, profitability, and job-creating capacity.

Programme Objectives: Empowerment and Economic Growth

The programme is about sustainable empowerment. Spaza shop owners who qualify will receive comprehensive financial and infrastructural assistance to elevate their businesses. According to the City, the fund is geared toward creating inclusive economic growth and directly addressing unemployment by bolstering informal businesses.

This initiative forms part of the City’s broader vision for inclusive urban development. The support fund also complements existing programs, such as the Ekurhuleni Economic Development Strategy, which outlines long-term plans for inclusive growth.

Up to R100,000 in Stock and Infrastructure Support

Each qualifying trader can receive up to R100,000 in fully funded support — not as a loan, but in the form of stock, business assets, and infrastructure. This funding model removes the burden of repayment and allows business owners to focus on growth and sustainability.

Applications for funding can be made via the official Spaza Shop Fund website, which also provides further information, FAQs, and eligibility guidelines.

Requirements Based on Funding Amounts

There are different eligibility tiers depending on the value of the requested support. According to Tshepo Mathibela from the Department of Small Business Development:

• For funding above R80,000, traders must:
  • Be registered with the Companies and Intellectual Property Commission (CIPC).
  • Hold a valid tax clearance certificate.
• For funding R80,000 or less, traders are not required to be CIPC-registered, which opens the door for a wider group of informal traders to benefit from the fund.

For help with compliance, traders can also visit CIPC’s registration portal or reach out to the City’s Development Planning and Real Estate Department.

City Officials Encourage Traders to Apply

Speaking at the launch event, Alderwoman Nomadlozi Nkosi, MMC for Development Planning and Real Estate, urged informal traders to take advantage of the opportunity. She assured business owners that the City is on standby to assist with licensing, trading permits, and compliance to meet the programme’s criteria.

“Our goal is to formalise and empower informal businesses — and that starts with giving them the tools and capital they need,” Nkosi said.

Formalising the Informal Economy

This fund represents a major push to formalise informal trading in Ekurhuleni, giving it the legitimacy and infrastructure it needs to thrive. From business registration to permits and compliance, informal traders are being supported not only with funding but with the administrative processes that improve long-term viability.

Those needing assistance with trading permits can consult the City’s licensing services page.

Township Economy: A Key Focus for Ekurhuleni

The Spaza Shop Support Fund is part of the City’s broader plan to grow township economies into strong contributors to local GDP. These businesses employ thousands and act as accessible hubs of commerce, especially in underserved communities.

City statistics show that supporting these enterprises will have a ripple effect on employment, food security, and access to essential goods in various townships such as Tembisa, Vosloorus, and KwaThema.

Partnerships That Power the Programme

Behind the fund is a powerful collaboration. The Department of Small Business Development, DTIC, NEF, and SEFA are combining expertise and capital to support the City’s efforts. The involvement of SEFA ensures that traders will also be equipped with financial literacy and business development skills.

Visit SEFA’s website to learn more about their national small business support programmes.

Application Details and Contact Information

Applications for the Spaza Shop Support Fund can be submitted online via the SSSF website. Additional queries can be directed to the dedicated call centre at 011 305 8080. Support will also be available through municipal service points to assist with physical documentation and compliance checks.

All applicants are encouraged to begin the process early to ensure they meet the criteria and take advantage of this window of opportunity.

A Step Toward a Stronger, Fairer Economy

The City of Ekurhuleni has made a clear statement: informal traders matter. Through this initiative, the City is turning policy into action — empowering entrepreneurs at the grassroots level to grow, hire, and contribute meaningfully to the economy. This is not just about spaza shops; it’s about recognising the power of local business.

If successful, the model could inspire similar programmes in other metros across South Africa.

Also read: Spaza Shop Snacks Linked to Tragic Death of Gauteng Grade 10 Learner: Full Details