Yes, there have been Support or Relief Measures made available for Sparzashops and General Dealers during Lockdown.
On 18 April 2020, the Department of Small Business Development (DSBD) announced guidelines for participation in the Spaza Shops and General Dealers Support Scheme in partnership with Nedbank. The facility opened on 18 April 2020.
The DSBD noted the following:
To improve access to the Spaza shops and General Dealers Support Scheme, the Department of Small Business Development wishes to clarify the following:
- The support scheme also benefits the general dealers/ traditional grocery stores in townships and villages with applicable licenses that are 100% owned by South Africans.
- Whereas the local hardware stores are also beneficiaries under this scheme, their funding package is being finalised to ensure their ability to operate as their businesses have been included in the updated list of businesses offering essential services. The support for artisans (e.g.: plumbers, electricians etc.) whose services have been classified as essential will also be announced during the week.
- The Department has finalised an Agreement with NEDBANK to support Spaza shops and general dealers on the back of the Khula Credit Guarantee Scheme of SEFA. Engagements to on-board the other banks continuing. Support through NEDBANK and its channels became available from Saturday, 18 April 2020.
- Given their footprint, NEDBANK has availed the NEDBANK Desks that are found in all the BOXER stores countrywide to serve as additional service points.
For further information please click here.
Who is the fund aimed at?
- Spaza shops and general dealers who are South African owned with the applicable licenses. At this point, although hardware stores are beneficiaries under the scheme, their funding packages are still being finalized.
For further information regarding Spazashop and General Dealers undertakings and required commitments in the scheme, please click here.
What is the fund for?
- Since a large proportion of communities rely on their neighbourhood spaza shops and general dealers (such traditional grocery stores), ensuring these businesses remain operable and follow the guided health and safety measures put forth by the national government is of paramount importance.
What support is available under the Scheme?
- Access to working capital investment and revolving credit facility that is backed by the Khula Credit Guarantee scheme of SEFA in partnership with NEDBANK. The facility is available at participating wholesalers that are distributed country-wide. The list of participating wholesalers will be shared with approved spaza and general dealer owners.
- Business Management support that includes assistance with basic financial management with support of Financial/ Business graduates that will be assigned to give dedicated support to the business over a 24 month period.
- Legal compliance that includes assistance to register with CIPC, SARS and UIF, and other compliance requirements that may be necessary for participation in the scheme.
For further information regarding the guidelines for participation and what support is available under the scheme, please click here.
What is the application process?
- A spaza shop/ general dealer owner who is a South African and holds a valid trading permit (including temporary) or business license in the case of a general dealer qualifies to apply.
- Qualifying spaza shop or general dealer must go to their nearest Nedbank branch or Nedbank helpdesk (located at their closest Boxer store) for assistance to apply.
- The following documents will be required when applying:
- A valid South African Identity document.
- A valid and original (no copies allowed) trading license/permit or business license (in the case of general dealers) issued by the municipality (not a councillor).
- In the case where the entity is not registered before approval of the scheme, the owner must be willing to accept assistance to be registered with CIPC, SARS and UIF.
- At the Nedbank branch/helpdesk, the owner will be assisted to register on the SMMESA database.
For further information regarding the application process, please click here.
What are the eligibility criteria?
- Any South African owned spaza shop or general dealer who holds a valid trading permit (including temporary) or business license qualifies to apply.
- The participating owner will be required to commit to the following:
- To buy stock on the department-approved basket of goods which are primarily South African produced. This may change from time to time.
- To operate a business banking account and participate in SEDA supported business management programmes such as inventory management and financial management.
- Uphold department-approved health and safety measures, including:
- Sanitizing before and after serving each customer.
- Disinfecting service counters.
- Social distance maintenance between customer and service point.
- No sale of counterfeit goods.
- Forbidden to use trading areas as sleeping areas.
For additional assistance or enquiries, spaza shop and general dealer owners may call 0860 663 7867 or e-mail to Spazasupport@dsbd.gov.za
Additional information may be obtained from any of the official websites: