The Department of Small Business Development has formalised over 2,000 spaza shops during the Covid-19 pandemic. The formalization comes after realizing that many small businesses were operating informally following the roll-out of relief measures for individuals and small businesses during the early stages of the Coronavirus pandemic.
Khumbudzo Ntshavheni, Minister of The Small Business Development said this would assist the newly formalised businesses to build a credit profile, which would make them viable to access financing with banking institutions.
âWe were able to formalise 2,242 spaza shops and [we] are processing applications from 4,406 spaza shops. We are already processing applications from 31 small-scale and informal bakeries, some of which are run by cooperatives. We have 33 applications from motor mechanics and panel beaters, and also from 15 enterprises that are making clothing and garments for our people,â she said.
Ntshavheni had been asked to indicate what additional measures her department would initiate and implement to sustain formalised small businesses going forward. She said the dedicated informal and micro-business support schemes, which are targeted at spaza shops and general dealers, mechanics, panel beaters and fitment centres, micro agri-businesses and chesa nyamas, are not once-off interventions.
âThese small-scale businesses will be supported for the next 12 to 24 months through a support programme that will help them to get business support, business management, financial management and access to the market. We have also partnered with the banks to make sure they can create products that are suitable and less costly to the small and informal businesses,â concluded the Minister.
