Mthobisi Nozulela|Published
Minister of Small Business Development Stella Ndabeni-Abrahams has explained why KwaZulu-Natal received more approvals under the Spaza Shop Support Fund than Gauteng, saying the province’s municipalities are quicker to verify business licences.
The minister revealed this in a parliamentary reply after ActionSA MP Lerato Ngobeni asked what had caused the disparity in funding approvals between provinces, why 350 applicants were rejected and whether the names of approved beneficiaries and the amounts allocated to them would be made public.
KZN leads in spaza shop approvals
The minister said KwaZulu-Natal had the highest number of applicants who uploaded business licences during the application process, and its municipalities were quicker to verify the licences.
She said the fund’s qualifying criteria include having a registered spaza shop that complies with municipal by-laws and other legal requirements.
"The municipalities in the province of KwaZulu-Natal have a well-functioning Spaza Shop licensing regime; hence the province has a highest number of applicants with licenses uploaded at application stage; and the municipalities in the province have been quick validating operating licenses"
She said that the names of rejected applicants would not be made public, citing privacy laws, including the Protection of Personal Information Act (POPIA) and the Promotion of Access to Information Act (PAIA). Instead, the department had provided application numbers and reasons why the applications were rejected.
The minister also said no funds had been paid to applicants before final approval was granted.
On the publication of approved beneficiaries, Ndabeni-Abrahams said the department was required to protect applicants’ personal information and commercially sensitive information.
She said the list of approved spaza shops included application numbers, provinces, districts and municipalities, rather than the names of the businesses.
The minister further revealed that, as of 16 July 2026, the Small Enterprise Development and Finance Agency (SEDFA) had approved funding for 1,386 spaza shops to the value of R83.9 million.
"The limited publication of the names of beneficiaries and incentives is guided by the privacy laws of the country such as the Constitution, Protection of Personal Information (POPIA) and Promotion of Access to Information Act (PAIA). There is an obligation to protect the personal information of the data subjects or applicants and to protect commercially sensitive information"
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