KwaZulu-Natal Premier Thami Ntuli has announced a new initiative aimed at increasing local participation in the province's spaza shop sector through funding, training and business formalisation.
Speaking during a roundtable discussion in Durban on Tuesday, Ntuli unveiled a support package that includes a R20,000 start-up grant for qualifying spaza shop owners and access to a R17 million restocking fund administered by the Small Enterprise Development and Finance Agency (SEDFA).
The initiative forms part of the provincial government's broader strategy to strengthen the informal economy and encourage more South Africans to own and operate spaza shops.
Ntuli cited research conducted by the KwaZulu-Natal Department of Economic Development, which found that 57.8% of spaza shops in the province are owned by foreign nationals, while South Africans own 42.2%.
He noted that many foreign-owned spaza shops have already been affected by recent developments, with a number of businesses having closed.
Ntuli said the findings highlight the need for greater local participation in the sector, adding that the provincial government wants KwaZulu-Natal residents to reclaim opportunities within the spaza shop economy.
The premier said the government has partnered with organisations that offer business training and funding programmes to help aspiring and existing entrepreneurs establish and grow their businesses.
He explained that the programme will be rolled out across all municipalities to ensure that local residents, including those who have leased out their spaza shops, are equipped with the knowledge needed to access funding, comply with regulations and operate formally.
Ntuli added that the province will use available data to monitor and evaluate the programme's impact and determine whether it is achieving its goal of increasing local ownership and strengthening the informal economy.