Government outlines next steps in spaza shop registration process

The deadline for spaza shop registration has passed, but the process of ensuring compliance and support for these businesses is far from over, said Small Business Development Minister Stella Ndabeni-Abrahams.

Addressing the media in Pretoria over the weekend, Ndabeni-Abrahams reassured business owners that those still awaiting registration outcomes will not be penalised. She said the department is aware of certain processes hindering swift registration, such as manual registration systems. Only 60 municipalities had digital systems, she said.

“We know the process had challenges, with many municipalities not having electronic business registration systems. All those that have applied are within their constitutional rights to do business but still await the registration outcomes will not be penalised,” Ndabeni-Abrahams said.

This is after the deadline for registrations lapsed on Friday.

The registration initiative, announced by President Cyril Ramaphosa following the outbreak of several cases of foodborne illnesses, is part of the government’s effort to enhance food safety and business compliance.

Ndabeni-Abrahams reiterated that compliance remains a key priority.

“The aim of the registration drive was two-fold, to ensure compliance with all food safety standards and to rebuild a more competitive and compliant business in our country.”

Support for spaza & related shops

To support spaza shop owners, the government will launch an R500 million Spaza Shop Support Fund later this month, Ndabeni-Abrahams announced.

The fund will be financed through contributions from the Department of Small Business Development and the Department of Trade, Industry and Competition. Ndabeni-Abrahams explained that the fund aims to assist registered shops in maintaining food safety compliance and enhancing their market competitiveness through bulk-buying initiatives.

“The fund will be launched in the next two weeks and a date will be communicated.”

The Minister also announced a six-month non-financial support programme to assist businesses that have applied but are not yet compliant.

“We understand the difficulties and costs associated with becoming compliant and this is why over the next six months we will be supporting these spaza shops who applied but are not yet compliant with non-financial support to enable their successful registration and compliance.”

The government is also working to streamline regulatory processes through the Red Tape Reduction Program.

“As a key strategic intervention to support the red tape reduction efforts, the department will ensure that municipalities are assisted with E-registration systems,” she said.

In addition, awareness campaigns will be rolled out in all 52 districts and metros between 3 and 30 March 2025 to inform business owners of available support mechanisms.