(1)(a) Since the inception of the Spaza Shop Support Program (SSSP) up to the period that ended on 31 January 2023, a total of 10 446 spaza shops applied for funding.
(1)(b) 6 350 have been assisted with funding equating to R58 507 000, creating and sustaining 7116 jobs. The applicants that were not approved were not spazas, such as electronics, plumbers, fruit and vegetable hawkers and in these cases they were advised to apply for assistance to the other support other support programmes of the Small Enterprise Finance Agency (sefa).
(2) The distribution of the funds is done through commercial banks, currently Nedbank and Standard Bank, which are providing this service free of charge to the applicant, to sefa and to the Department of Small Business Development (DSBD). The bank model was opted for as it proved to be quickest and securest method of disbursing funds. It provides for secure bank cards that are managed through the secure bank platform. The bank provides close loop purchasing cards which only works at approved wholesalers who partnered with sefa for the provision of the SSSP. This means that the cards can only work at those wholesalers and only for the purchase of approved basket of goods comprising of goods which are normally sold at spaza shops.
3(a)&(b) The maximum amount per applicant is R15 000 which is split into a grant of R10 500 and credit of R4 500 that is accessible at wholesalers that are offering credit. The R4 500 is further protected by a guarantee cover from sefa.
4(a)-(c) Though the total amount at the inception of the SSSP was R175 million the DSBD was required to reprioritise R 87.5 million to the Business Viability programme to assist SMMEs affected by the floods in KwaZulu-Natal (KZN) province and those affected by the riots and looting in KZN and Gauteng provinces. As a result of the reprioritisation the SSSP was left with R87.5 million of which R58.5 million has already been disbursed leaving a balance of R30 million. The continuous popularisation of the scheme will result in the demand exceeding the funds available. This will require additional funding to be allocated via the approved through proper governance structures. On a monthly basis sefa continues to approve spaza applications as they come in either directly at sefa offices, the Small Enterprise Development Agency (Seda) offices and even through the commercial bank branches.
STELLA NDABENI-ABRAHAMS
MINISTER: DEPARTMENT OF SMALL BUSINESS DEVELOPMENT