R57m Spaza Shop Fund: Committee says no payments went to foreign-owned shops

Masefako Dikgale, the Chairperson of the Portfolio Committee on Small Business Development

The R57 million Spaza Shop Support Fund has reached its intended beneficiaries, said the Portfolio Committee on Small Business Development on Friday.

According to the Department of Small Business Development, a total of 930 disbursements had been made as of July 31, 2026. The department further assured the committee that no single disbursement had been made to a spaza shop owned by a foreign national.

Committee Chairperson Masefako Dikgale praised the stringent internal controls and due diligence measures implemented by the department and the Small Enterprise Development Finance Agency (SEDFA). Dikgale said the money went to qualifying South African citizens operating legitimate spaza shop businesses.

“The committee engaged with the department and the agency on allegations that the fund had been disbursed to spaza shops operated by foreign nationals through South African fronts. We were assured that applications are subjected to stringent verification processes before any funds are disbursed,” Dikgale said.