Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa has emphasised that the R500-million fund to support township and rural businesses, including spaza shops, will only be available to South Africans. He said foreign nationals are required to have R5 million to invest in SA to start a business and therefore will not need the funding. Hlabisa said this as the deadline to register spaza shops and food handling establishments comes to an end next week.

FOR SOUTH AFRICANS ONLY 

Hlabisa explained that the R500m would be administered by another department. "What will happen is that once a person has been verified and found with an existing business that is compliant with the basic minimum requirements as reflected in the application, then that businessperson will approach the department of small business enterprises and apply." He said the applicants must state in their applications if they are a spaza shop owner or a food handling outlet and their location. "For example, the applicant will state why they need the funding, either to upgrade the internal part of their business, ensure the correct infrastructure or look for a variety of things that a businessperson can apply for to make the business good to operate," Hlabisa said.

FOREIGNERS MUST INVEST?

Hlabisa explained that foreign nationals must confirm that they have the required amount of R5 million to invest in the country. "Foreign nationals must have the required amount to invest in South Africa, and if they have that amount, then they can't go and apply for help. This money is for South Africans who intend to or have been operating a particular business and want to upgrade the standard," he said. He emphasised that even refugees are not eligible for the R500 million because they are foreign nationals who are in the country on refugee status. "If a refugee wants to start a business, they need to apply and say that they now want to start operating a business; they must say the amount of money they have in their bank accounts in SA," he added. The minister encouraged spaza shop owners to make sure their businesses are registered by next week Friday, as another extension is unlikely. "We want to encourage every person interested in this business not to postpone any further. It will be almost impossible to get another postponement," the minister said.