R500 Million Fund Launched to Boost Township and Rural Businesses

The South African government is creating a R500 million joint fund to support township and rural businesses. The fund will help local convenience stores and other businesses improve their operations, comply with regulations, and grow their capacity.

Support for Small Businesses

Minister of Justice and Constitutional Development Thembi Simelane announced the fund on Thursday. She explained that businesses in townships and rural areas would receive help with infrastructure upgrades, regulatory compliance, and capacity building.

“Approved businesses will benefit from this fund as soon as the registration process is complete,” Simelane said. She added that the application process would include strict audits to prevent fraud.

Who Qualifies?

To qualify for funding, businesses must:

• Serve local communities and operate within South Africa.
• Register with their local municipality and follow by-laws.
• Hold valid registration with the South African Revenue Service (SARS).

Young entrepreneurs, especially women aged 18 to 35, will get priority for funding.

Database for Better Regulation

The Department of Small Business Development is building a centralized database to manage data on township and rural businesses. This system will ensure better regulation and help prevent issues like foodborne illnesses.

Government Cracks Down on Fraud

The government has promised to act against illegal activities related to spaza shop registrations. Reports of South Africans registering businesses for undocumented foreign nationals have raised concerns.

“This practice is illegal,” Simelane warned. “The Immigration Act prohibits helping undocumented foreigners to obtain business licenses.”

Landlords must also ensure their tenants follow the law when conducting business.

Fighting Corruption

The Minister addressed concerns about fraudulent activity by government employees. She assured the public that law enforcement would act against civil servants who engage in corruption.

The public can report suspicious activities by calling the National Anti-Corruption Hotline at 0800 701 701.

Avoiding Obstruction

Simelane urged South Africans not to disrupt the registration process. She also warned against unauthorized inspections or attempts to block certain shop owners from registering their businesses.

This new fund aims to support economic growth, help small businesses thrive, and ensure compliance with South African laws.