Spaza shops association welcomes R500m government boost

The South African Spaza-Shops Association (Sassa) has welcomed the R500m in government funding aimed at revitalising spaza shops across the country.

The association has, however, emphasised the urgent need for proper management, transparency and structural oversight to ensure the funds serve their intended purpose. 

“This initiative brings hope that it will stabilise the spaza shop industry, which has faced numerous challenges over the years,” said Kgothatso Ramautswa, president of the association.

In March TimesLIVE reported that small business development minister Stella Ndabeni-Abrahams had announced a R500m support fund for spaza shops in collaboration with the department of trade, industry and competition (DTIC).

The association expressed deep concern about the potential mismanagement of the funds.

“We firmly believe that those entrusted with this money must act with integrity and ensure that it is used to genuinely support the local economy. .

“It is crucial that the funds are not squandered, but rather channelled into sustainable initiatives that help the growth of spaza shops and, by extension, our communities,” Ramautswa said. 

Sassa also said it is intensifying its monitoring efforts to ensure spaza shop owners buy stock from certified and ethical suppliers.

It said it discourages trade with unverified or ‘background’ manufacturers, which pose risks to consumer safety and fair business practices. Ramautswa also called on the Consumer Commission to actively engage in safeguarding the rights of consumers.

He reaffirmed the association's commitment to protect the interests of spaza shop owners and called on the government to regulate and monitor all stakeholders in the industry.

TimesLIVE