The Citizen: Spaza shops to get R7K capital investment, revolving credit from Covid-19 relief funds
The shop dealers will each get a capital investment of R3,500 and another R3,500 as revolving credit for them to use at preselected wholesalers.
Minister of Small Business Development Khumbudzo Ntshavheni has said that 88 of the 104 spaza shops which have been approved to access funds from the Spaza Shops and General Dealers support scheme will each get a capital investment of R3,500 and another R3,500 as revolving credit for them to use at preselected wholesalers.
Ntshavheni was on Tuesday speaking at an inter-ministerial media briefing to elaborate on the socio-economic relief interventions on Covid-19 and the strengthening of the performance of the economy during this period.
The minister said Spaza shop owners may opt to take the full R7,000 as revolving credit.
The spaza shop support scheme was launched about a week ago and has already received over 104 applications with 88 spaza shops already approved, the minister said.
She said the low numbers of spaza shops that had been approved was due to the current restrictions on movement during the national lockdown.
Ntshavheni said the department has partnered with Nedbank to increase coverage, with the bank availing its desks found at Boxer stores countrywide to serve as additional service points for spaza shop owners.
The minister said the department was engaging the post office to make use of its offices for applicants to make their registrations.
She said the database of spaza shops was not within her department because the licensing and granting of permits to spaza shops was the responsibility of municipalities, adding that the department was working with these municipalities.
Ntshavheni said that according to the databases municipalities had, there were over 130,000 spaza shops that were approved to trade within South Africa.
The minister said that within this week or the next, the local economic development offices within municipalities across the country were expected to call on spaza shop owners to apply for the scheme and that officials would assist applicants with completing forms.
The minister said the spaza shop support scheme spans over six to eight months, “because we believe that the curve peak will probably arrive in September 2020”.
by the Citizen – https://citizen.co.za/news/covid-19/2275977/spaza-shops-to-get-r7k-capital-investment-revolving-credit-from-covid-19-relief-funds/