Cape Town - More than 6 000 spaza shops were assisted with funding to the tune of R58 million as at January 2023, since the introduction of the Spaza Shop Support Programme (SSSP).
This was revealed by Small Business Development Minister Stella Ndabeni-Abrahams when she was responding to written parliamentary questions from GOOD party MP Brett Herron.
Herron wanted to know about the number of spaza shops that applied for support after President of the Republic Cyril Ramaphosa announced in April 2020 Covid-19 economic and social relief measures aimed at assisting SMMEs, spaza shop owners and other informal businesses in the form of loans, grants and debt restructuring.
He also enquired about the total amount of R175m was distributed, and unspent, asking and what became of the unallocated funds.
In her response, Ndabeni-Abrahams said a total of 10 446 spaza shops applied for funding.
She said 6 350 have been assisted with funding to the tune of R58 507 000.
“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 programmes of the Small Enterprise Finance Agency,” she said.
Ndabeni-Abrahams said the distribution of the funds was done through commercial banks.
Applicants were eligible for a maximum amount totalling R15 000, which was split into a grant of R10 500 and credit of R4 500 at wholesalers that offered credit.
“Though the total amount at the inception of the SSSP was R175m the DSBD was required to reprioritise R 87.5m to the business viability programme to assist SMMEs affected by the floods in KwaZulu-Natal 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,” she said.
Ndabeni-Abrahams also said popularisation of the scheme would result in the demand exceeding the funds available and that would require additional funding to be allocated via the approved through proper governance structures.
“On a monthly basis the Small Enterprise Funding Agency (Sefa) continues to approve spaza applications as they come in either directly at Sefa offices, the Small Enterprise Development Agency offices and even through the commercial bank branches,” she said.
Cape Times