Spaza Shop Owners Warned of Scams Targeting R500 Million Support Fund

Just two weeks after the launch of the highly anticipated R500 million Spaza Shop Fund, South Africa’s Department of Small Business Development is urging caution as fraudsters attempt to exploit hopeful entrepreneurs.

The fund, which was designed to support the country’s informal retail sector by providing critical assistance—such as stock deliveries, refrigeration, shelving, and security upgrades—has already become the target of deceptive individuals falsely claiming to offer access or guarantees.

False Promises and Fake Officials

According to the department, some scammers are presenting themselves as intermediaries with inside connections to government officials. They’re allegedly promising to fast-track applications or secure approvals—for a fee.

“These are fraudulent claims,” the department said in a public warning. “No assistance is needed from individuals or associations to apply for the Spaza Shop Fund.”

Apply Only Through Official Channels

To protect themselves, spaza shop owners are urged to ignore offers from people claiming to ‘help’ with applications and instead follow the official process available online.

“All funding applications must be submitted directly through the official portal at www.spazashopfund.co.za,” the department confirmed. “No applications will be processed through social media or personal email addresses.”

No Payments, No Agents

The department also emphasized that no government official is authorized to handle payments or personally process any part of the application.

“There are no third-party agents involved in approvals or payments,” it added. “If someone is asking for money in exchange for guaranteed access to the fund, it is a scam.”

Register Your Spaza Shop to Qualify

In addition to applying online, spaza shop owners are reminded to register their businesses at their nearest municipal office. This step is crucial to ensure compliance with the regulations tied to fund eligibility.

“We strongly encourage all Small, Medium, and Micro Enterprises (SMMEs) in the informal sector to register,” the department said. “This ensures transparency and allows the support fund to be distributed fairly and efficiently.”

Empowering the Informal Sector—Safely

The Spaza Shop Fund was introduced as a way to uplift and formalize South Africa’s vast informal economy, creating more sustainable businesses in townships and rural areas. But with rising interest comes the need for vigilance.

The department is asking all applicants to spread the word about these scams and help ensure that this R500 million initiative reaches the people it was truly meant to support.

For secure applications and more information, visit: www.spazashopfund.co.za.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com