The Department of Small Business Development has issued a warning to Spaza shop owners
Image: File: Itumeleng English/ Independent Newspapers
The Department of Small Business Development has issued a stern warning to spaza shop owners as reports surface of fraudulent individuals and groups bilking unsuspecting entrepreneurs with promises of assistance in accessing the newly launched Spaza Shop Fund.
The fund, valued at R500 million, was unveiled only two weeks ago to bolster South Africa’s informal retail sector. The fund provides a range of assistance, including stock procurement through designated delivery partners, infrastructure upgrades, refrigeration, shelving, and security enhancements
However, the excitement surrounding its launch has quickly been overshadowed by deceptive schemes targeting those seeking financial help.
In a statement, the department said that some individuals are falsely claiming to have official ties to the government or privileged access that can guarantee approval.
“The department wishes to remind the public that all funding application processes are on its official websites and spaza shop owners do not require assistance from associations to complete the online application form. The public can visit: www.spazashopfund.co.za to register and apply," the department said.
The department emphasised that no officials are involved in processing individual payments and warned that applications are not accepted through social media platforms.
“Please be advised that no official in the department handles the administration procedures pertaining to processing payment related to the support fund,” the department said on Wednesday.
"The department does not utilise social media platforms to accept any applications and further wishes to state categorically that no official has been requested to respond to applications on any social media platform or personal email address,".
The department also encouraged spaza shop owners to register their businesses at the nearest municipal offices to ensure compliance and eligibility for the support fund.
"Small, Medium, and Micro Enterprises (SMMEs) are encouraged to register their spaza shops at the nearest municipality offices to comply and qualify for the support fund," the department said.
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