In a move aimed at both fostering local economic growth and addressing the ongoing food safety crisis, South Africa’s Justice Minister, Thembi Simelane, has announced the establishment of a R500 million joint fund to support township and rural businesses, including spaza shops. The initiative comes at a time when the country grapples with an alarming rise in foodborne illnesses, prompting urgent measures to improve the safety and regulatory compliance of convenience stores that serve local communities.
The government’s fund, designed to strengthen the infrastructure and operations of small businesses in underserved areas, will focus on providing support to enhance food safety standards and regulatory adherence. Simelane explained that the funds will be directed toward improving the compliance and capacity of these businesses, with a focus on addressing the gaps that have contributed to the recent food poisoning outbreaks.
“The departments overseeing this fund are in the process of finalizing guidelines and operational procedures to ensure the fund’s effectiveness,” Simelane stated. “In the short term, we will assist approved rural and township businesses with improving their infrastructure and meeting regulatory standards, which will, in turn, help combat the rise in foodborne illnesses.”
The initiative is part of broader efforts to mitigate food safety risks that have triggered a national public health response. The fund’s application process will include strict auditing mechanisms to ensure transparency and prevent fraud, with an emphasis on using these safeguards as an early warning system against potential misuse.
To qualify for the fund, business owners must meet several key criteria. Applicants must be South African citizens operating within the country and registered with local municipalities. Additionally, businesses must hold valid registration with the South African Revenue Service (SARS). Special priority will be given to entrepreneurs between the ages of 18 and 35, with a particular emphasis on female-owned businesses—a move that aligns with the government’s broader goals to empower young and female entrepreneurs.
Simelane also revealed that a national database of small businesses and spaza shops is being created as part of a larger initiative to centralize data on the township and rural economy. This database, equipped with geo-mapping capabilities, will provide a comprehensive tool to strengthen regulatory oversight and ensure businesses comply with food safety standards, helping to prevent future outbreaks.
In a parallel development, President Cyril Ramaphosa recently announced that all spaza shops in the country must be registered within 21 days to formalize the sector and improve monitoring. Simelane underscored that all legitimate traders who meet the legal requirements will be permitted to operate, but stressed the importance of compliance with the country’s regulations.
As South Africa continues to confront food safety challenges, this fund represents a significant step toward safeguarding public health, empowering local businesses, and promoting sustainable economic growth in the country’s most vulnerable communities. The success of this initiative could set a precedent for future interventions aimed at addressing both economic and public health concerns across the nation.
