Minister of Small Business Development, Khumbudzo Ntshavheni, urged spaza shop owners to support to South African products in a bid to ensure that the “economy can be rejuvenated” and “as part of investing in the economy”.
The Minister was giving an update at an inter-ministerial press briefing on Tuesday, on the implementation plan meant to minimise the impact of the 21-days lockdown on small, medium and micro enterprise (SMMEs) and the informal business sector.
Ntshavheni announced that the Departments of Small Business Development will manage the spaza shop support scheme.
“We have five types of support that we are giving. An apportunity for networking or purchasing power or bulk buying and we are coordinating that bulk buying through the pre-selected or selected wholesalers. They have to buy on a pre-approved bucket of goods and that basket of goods will include some of the produce made by SMMEs that the department and its agencies are supporting and other SMMEs that have the certification for our products,” Ntshavheni said.
The minister added that spaza shop owners will have access to “seed capital” to buy stock.
“The scheme will also entail access to seed capital and credit capital. We know that some of the spaza shops are not able to access money to buy stocks and we are availing at the first go, that which will assist spaza shops to buy stock followed by a credit facility that will enable them to buy stock even beyond this situation,” she said.
The Minister outlined the criteria to qualify for the scheme:
Spaza shops must be owner managed and operated.
Spaza shops must be willing to register with the Company Intellectual Property Commission (CIPC), South African Revenue Services (SARS) and Unemployment Insurance Fund (UIF).
They must have proof of bank account.
Register on SMMEs SA website
Spaza shops must have permits to trade and those that are operating illegally can go to the nearest municipality to apply for permits.
They must be willing to stock products that are manufactured by other South African SMMEs.
Spaza shops must submit monthly management accounts if they have been on the system and Small Enterprise Development Agency (SEDA) will assist with this.
Post investment they must be willing to continue with the system for a minimum of 12 months.
Minister Ntshavheni is expected to outline the plan for the informal sector on Thursday 2 April.