Johannesburg Small Business Development Minister Stella Ndabeni-Abrahams has announced a R500 million stimulus fund to support spaza shops, as the government tightens regulations in response to food safety concerns. The announcement was made on Sunday, exactly 107 days after President Cyril Ramaphosa declared that all spaza shops and food handling outlets must be registered following several cases of food poisoning and deaths.
Spaza shops, which serve as key businesses in many townships, have faced increased government scrutiny after incidents where children died from consuming unsafe food bought at informal stores. In response, the government introduced new rules requiring all such businesses to be registered, with the deadline for registration closing on Friday, 28 February.
Ndabeni-Abrahams stressed that while the government supports small businesses, they must operate safely and legally. “We cannot allow a situation where unsafe food endangers lives. This fund will help spaza shop owners comply with the law while also growing their businesses,” she said.
To assist shop owners in meeting the new requirements, the government will roll out a R500 million fund within the next two weeks. This financial support is aimed at helping registered businesses improve operations, meet health and safety standards, and access better suppliers.
“This is not just about regulation, it’s about support. We want to see small businesses succeed while ensuring they follow the rules,” Ndabeni-Abrahams said.
With the registration deadline now passed, the government will strictly enforce compliance for spaza shops. Business owners must have proper licenses, follow food safety laws, and buy products from approved suppliers. Those who fail to meet the standards could face fines or even closure.
Shop owners were required to register with the Companies and Intellectual Property Commission (CIPC) and comply with new safety measures. Authorities say inspections will begin soon to ensure businesses are following the rules.
The announcement has received mixed reactions. While some entrepreneurs welcome the financial support, others worry that small, informal traders who did not register in time may struggle to continue operating.
Economic experts also warn that the success of the stimulus fund will depend on how well it is managed and whether the money reaches those who truly need it. The government has promised transparency in distributing the funds and will provide training programs to help business owners adjust to the new rules.
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The spaza shop sector is entering a new era with stricter regulations and government oversight. While the R500 million fund offers hope for struggling shop owners, the real challenge will be ensuring that businesses can adapt and thrive under the new laws.
For many spaza shop owners, this is a critical moment, one that could determine the future of their businesses in a changing market.
WATCH: Minister Ndabeni-Abrahams Leads a media briefing on the Spaza Shop and food outlet deadline registration
