NATIONAL NEWS - The Department of Small Business Development today announced finalised guidelines for participation in the Spaza Shops and General Dealers support scheme. This support scheme is in partnership with Nedbank.
The department says the support scheme also benefits the general dealers/ traditional grocery stores in townships and villages with applicable licenses that are 100% owned by South Africans.
"Whereas the local hardware stores are also beneficiaries under this scheme, their funding package is being finalised to ensure their ability to operate as their businesses have been included in the updated list of businesses offering essential services." This agreement with Nedbank was finalised on the back of the Khula Credit Guarantee Scheme of SEFA. "Engagements to on-board the other banks are continuing," says the department.
Support through Nedbank and its channels became available as of today, Saturday, 18 April 2020.
The department says the support for artisans (e.g.: plumbers, electricians, etc.) whose services have been classified as essential, will also be announced during the week.
Also, given their footprint, Nedbank has availed the Nedbank Desks that are found in all the Boxer stores countrywide, to serve as additional service points.
How to apply for support under the Spaza's and General Dealer support scheme:
1.1 A spaza shop/ general dealer owner who is a South African and holds a valid trading permit (including temporary) or business license in the case of a general dealer qualifies to apply.
1.2 The qualifying spazas and general dealer owner must go to their nearest Nedbank Branch or Nedbank desk at their nearest BOXER store for assistance to apply. The following documents will be required:
a) A valid South African ID document
b) A valid and original municipal trading license/ permit to trade or business license in case of a general dealer (COPIES ARE NOT ACCEPTABLE).
Only permits or licenses issued by the municipality, NOT a councillor are valid.
1.3 The qualifying Spazashop/ General Dealer owner must be willing to accept assistance to register with CIPC, SARS and UIF, in the case were the owner is not already registered before approval to participate in the scheme.
1.4 At the Nedbank branch/ desk, the owners will be assisted to register on the SMMESA database, and complete the applicable application form.
1.5 The participating owners will be required to commitment and undertake to the following:
a) To buy products on the department approved basket of goods that will change from time-to-time, in particular products produced by South African SMMEs and cooperatives;
b) To operate a business banking account and will accept to participate in the SEDA supported business management support programme that includes assistance with inventory management and stock control, preparations of management and annual financial statements.
c) To uphold Environmental Health and Food Safety Standards and the Guidelines of the Department of Health, which will include:
i. Sanitizing before and after serving each customers;
ii. Disinfecting the service counters;
iii. Maintain the applicable social distance between customers and customer and service point;
iv. No sale of counterfeit goods and stale/ expired foodstuff;
v. Not use trading spaces as sleeping quarters.
2. What is the support available under the scheme
2.1 Access to working capital investment and revolving credit facility that is backed by the Khula Credit Guarantee scheme of SEFA in partnership with Nedbank. The facility is available at participating wholesalers that are distributed country-wide. The list of participating wholesalers will be shared with approved spaza and general dealer owners.
2.2 Business Management support that includes assistance with basic financial management with support of Financial/ Business graduates that will be assigned to give dedicated support to the business over a 24 month period.
2.3 Legal compliance that includes assistance to register with CIPC, SARS and UIF, and other compliance requirements that may be necessary for participation in the scheme.
For additional assistance or enquiries, spaza shop and general dealer owners may call 0860 663 7867 or e-mail to Spazasupport@dsbd.gov.za
Additional information may be obtained from any of the official websites:
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