The South African government is ramping up efforts to regulate and support spaza shops and food-handling outlets following a nationwide registration drive aimed at enhancing food safety and business compliance. In a media briefing on March 2, 2025, Minister of Small Business Development, Stella Tembisa Ndabeni, provided a comprehensive update on the registration process, the challenges encountered, and the next steps in formalizing and empowering township businesses.

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The registration initiative was first announced by President Cyril Ramaphosa 107 days ago in response to a surge in food-borne illnesses that resulted in multiple fatalities. Initially set for 21 days, the registration deadline was extended to February 28, 2025, allowing more businesses to comply with the new regulatory framework.

While the registration process was an essential step, Minister Ndabeni emphasised that the journey towards full compliance is ongoing. “Reaching the deadline does not necessarily mean that the challenges of compliance are over, nor does it mean that the sector is now fully regulated,” she stated. The initiative is part of a broader multi-disciplinary approach aimed at enhancing food safety and business standards.

Recognizing the operational and financial challenges many spaza shop owners face, the Department of Small Business Development (DSBD) has committed to a six-month support program. Those who applied but are still awaiting registration outcomes will not be penalized. Instead, they will receive non-financial assistance, including business training through the Small Enterprise Development and Finance Agency (SEDFA).

A major highlight of the announcement was the upcoming launch of a R500 million Spaza Shop Support Fund, aimed at strengthening township convenience stores. This fund, co-financed by the DSBD (R150 million) and the Department of Trade, Industry, and Competition (R350 million), will facilitate access to bulk purchasing, training, business infrastructure, and financial aid.

“Our goal is to improve the competitiveness of spaza shops by linking them to buying groups for economies of scale and helping them adopt better inventory management systems,” said Minister Ndabeni.

One of the major barriers to business registration has been the lack of electronic registration systems in many municipalities. To address this, the DSBD is introducing the DSBD Connect Platform, a digital system designed to streamline registration, business verification, and access to funding.

Additionally, the department has embarked on a Red Tape Reduction Program, which seeks to simplify licensing requirements and improve ease of doing business in South Africa. The National Business Licensing Bill, once approved, will provide greater clarity and consistency in regulatory processes, further easing the burden on small enterprises.

To ensure that more business owners are informed and supported, the government will roll out a nationwide awareness campaign from March 3 to March 30, 2025. The campaign, which will continue beyond March through SEDFA and local municipalities, will provide education on business regulations and available support programs.

As part of this initiative, 61 Business Regulation Officers have been recruited for six-month contracts, each assigned to a district or metro. Their responsibilities will include conducting research, geo-mapping spaza shops, and facilitating compliance workshops.

Minister Ndabeni’s announcement underscores a significant shift towards formalising and empowering township enterprises. By combining regulatory enforcement with financial and operational support, the government aims to create a more sustainable and competitive informal business sector.

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“We extend our gratitude to all business owners who responded to the call to register and adhere to the laws of the land. As a government, we remain dedicated to supporting small businesses and ensuring they play a significant role in the nation’s economy,” she concluded.

The success of this initiative could pave the way for future interventions that not only regulate but also uplift and integrate township businesses into the mainstream economy, fostering job creation and local economic growth.

For small business owners, the time to act is now—leveraging government support to build stronger, more resilient enterprises. With increased regulation and investment, the township economy stands on the brink of transformation, promising a future of greater business sustainability and consumer safety.

-The VIP Team

-DSBD

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