The Department of Small Business Development held an urgent media briefing in Pretoria on Friday 29 May 2026 after public pressure mounted over transparency in the R500 million Spaza Shop Support Fund. Image: Supplied/DSBD
South Africans are demanding answers about the R500 million Spaza Shop Support Fund. The fund launched in April 2025. However, more than a year later only R179.5 million has been spent. Furthermore, serious concerns about fronting, fraud and transparency have emerged. This R500 million spaza shop fund accountability story is one of the most pressing economic questions facing the government right now.
R500 Million Spaza Shop Fund: The Numbers
The Department of Small Business Development held an urgent media briefing in Pretoria today Friday 29 May 2026. Director-General Thulisile Manzini confirmed that R179.5 million has been disbursed to qualifying spaza shop owners across South Africa. Furthermore, SEDFA has approved R79.6 million for 1,316 spaza shop owners across all nine provinces. However, South Africans are asking what happened to the remaining R320 million.
The department explained that municipalities reported approximately 82,000 spaza shops registered nationally. However, verification confirmed only 44,696 registered businesses. Of those, approximately 15,000 were able to obtain approved trading permits or licences. As a result, thousands of applicants were rejected because they did not meet the criteria.
“It is important to distinguish that registration does not equate to licensing,” said Manzini.
Why Is the Rollout So Slow?
Minister Stella Ndabeni-Abrahams acknowledged the delays. “This is progressing at a slow pace due to the number of parties involved in coordinating the work, including inspections, verification of citizenship, and site and health inspections,” she said. Furthermore, the department announced a nationwide outreach programme beginning in June 2026 to help qualifying owners complete applications.
However, South Africans online are not satisfied with that explanation. Commentary across social media reflects frustration that a fund announced more than a year ago has disbursed less than 36 percent of its allocated budget. Many have pointed out that the spaza shop owners who need the money most are the same people struggling to navigate a complex application and verification process.
Fronting and Fraud Concerns
Perhaps the most alarming revelation to emerge from the R500 million spaza shop fund accountability debate is the scale of alleged fraud in the application process. The South African Spaza and Tuckshop Association warned that up to 50 percent of applicants may be fronting for others. Furthermore, during the registration process, some South Africans were caught registering spaza shops under their own identities on behalf of undocumented foreign nationals.
The Township Economic Commission of South Africa also raised concerns. TECSA president Bheki Twala said only a few genuine South African-owned spaza shops had successfully registered. He confirmed he had received numerous complaints about the process from frustrated shop owners.
As a result, Parliament’s Portfolio Committee on Small Business Development called for the fund to be shielded from corruption. The committee stated clearly that the money must be used to uplift South Africans from poverty and unemployment and not be diverted through fraudulent applications.
Public Pressure Forces Transparency
The department’s briefing today came after mounting public pressure. Entrepreneur and author Vusi Thembekwayo was among the prominent voices demanding accountability. “Minister, believe it or not, we actually want you to succeed. Not because we support you, but because the youth of this country are desperate for jobs and dignity. So when we ask for accountability, it’s not an attack,” Thembekwayo wrote on X.
South Africans online have also demanded the release of a full beneficiaries list showing exactly which spaza shops received funding, in which provinces and in what amounts. The department has not yet committed to releasing a comprehensive beneficiaries list at the time of publication.
What Happens Next
The department confirmed that a nationwide outreach programme will begin in June 2026. Furthermore, SEDFA is working closely with municipalities to verify licences and process outstanding applications. The remaining R320 million in the fund is still available to qualifying South African-owned spaza shop owners.
South African spaza shop owners who believe they qualify are encouraged to apply at spazashopfund.co.za.
Editors Note All figures referenced in this article are based on the Department of Small Business Development media briefing held in Pretoria on 29 May 2026. Mzansi Today Live will update this article as further information becomes available.