R79.6 Million for Spaza Shops: Real Support or Political Window-Dressing?
Tebogo Mashilompane
National Leader of Forum for South Africa
By Tebogo Mashilompane
National Leader of Forum for South Africa (FOSA)
The Forum for South Africa (FOSA) notes the announcement by the Minister of Small Business Development, Stella Ndabeni-Abrahams, that government has allocated approximately R79.6 million in financial support to spaza shop owners across the country.
While any effort to uplift small and informal businesses is, in principle, welcome, FOSA is deeply concerned about the lack of transparency, accountability, and measurable impact surrounding this funding.
South Africans have heard these promises before.
Key concerns we raise:
Who exactly benefited?
There is no clear, publicly accessible list of recipients.
Without transparency, this funding risks becoming another vehicle for cadre deployment and political patronage.
What criteria was used?
Small business owners across townships and rural areas continue to struggle daily.
Many deserving entrepreneurs are consistently overlooked while politically connected individuals benefit.
Where is the impact?
If R79.6 million has already been distributed, why do the majority of spaza shop owners still face collapsing infrastructure, crime, and unfair competition?
Coordination failure
The involvement of the Department of Trade, Industry and Competition raises further questions about duplication, inefficiency, and lack of coherent strategy within government.
FOSA warns that throwing money at a broken system without structural reform will not revive township economies.
What is needed is not headline-grabbing figures, but:
Real protection for local businesses against crime and illegal trade
Access to markets and supply chains
Reduction in red tape and corruption
Fair and transparent funding processes
Our position is clear:
South Africa’s small business sector cannot be used as a political tool for electioneering.
Every rand must be accounted for, and every beneficiary must be known to the public.
FOSA calls on Minister Ndabeni-Abrahams to:
1. Publish a full list of beneficiaries of the Spaza Shop Fund
2. Provide a detailed impact assessment of the R79.6 million spent
3. Outline a clear, corruption-free framework for future funding
Until then, this announcement risks being seen as nothing more than another PR exercise disconnected from the lived reality of struggling entrepreneurs.
South Africans deserve better.