Spaza shops to get financial relief for lockdown losses, but T&Cs apply

01 April 2020 - 06:00 By ZINGISA MVUMVU
Spaza shop owners are allowed to operate during the lockdown if they meet certain conditions - and will be able to apply for financial support from the government.
Spaza shop owners are allowed to operate during the lockdown if they meet certain conditions - and will be able to apply for financial support from the government.
Image: SIMON MATHEBULA

Small business development minister Khumbudzo Ntshavheni has unveiled a scheme to assist spaza shop owners during the lockdown.

Strict terms and conditions will apply, however.

The support to spaza shops will not discriminate on whether or they are owned by South Africans or foreign nationals. As long as they are properly registered, all shall receive assistance, said Ntshavheni,

Details about when applications will open will be announced on April 2, she added.

Conditions for eligibility to the financial support scheme, which will be in the form of capital or credit facility, include:

  • business permits to trade (those who do not have are advised to apply for one in their respective municipalities);
  • the shop must be owner-managed and registered on UIF and CIPC;
  • Sars registration;
  • proof of banking and registration on SMME SA;
  • buying products manufactured by local small businesses;
  • a sound monthly money management system; and
  • ability to sanitise before and after serving every customer.

Ntshavheni said they will give further support to spaza shops that will include bulk-buying.

"We are coordinating that bulk-buying through selected wholesalers and they have to buy [from] a pre-approved basket of goods," she said.

"We are also supporting them in terms of business management support, because we know there are challenges with our spaza shops in running businesses that are profitable."

As for operating hours during the lockdown, Ntshavheni said the regulations that apply to retail shops also apply to spaza shops, adding that discussions were unfolding on possibly extending the trading hours of spaza shops.


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