A fund aimed at addressing challenges linked to foodborne illnesses, particularly in township convenience stores, has been established. This was announced by Trade, Industry and Competition Minister Parks Tau during his briefing to the Select Committee on Economic Development and Trade in Parliament on February 18.

According to Tau, the primary objective of the fund is to support township-based community convenience shops, including spaza shops. The fund will be administered jointly by the Ministry of Small Business Development and the Department of Trade, Industry and Competition (dtic).

“The prevalence of food poisoning incidents linked to spaza shops poses significant health risks to consumers and erodes trust in these businesses.

“Contributing factors include inadequate food handling practices, poor storage conditions and limited awareness of hygiene standards. This fund has been established to help address some of these challenges,” Tau said.

He added that the funding would be used for business refurbishments and to facilitate wholesale aggregation. Additionally, nonfinancial support would be provided, including technical skills development, regulatory compliance assistance and capacity-building initiatives.

“The support package aims to strengthen locally owned spaza shops in South African townships by enhancing their operational efficiency, building capacity, and improving access to competitive pricing through strategic partnerships.

“This includes enabling spaza shop owners to benefit from bulk purchasing advantages and business support services to enhance their sustainability and competitiveness,” Tau explained.

He further outlined that the fund’s implementation would be led by the National Empowerment Fund and the Small Enterprise Development and Finance Agency.

These entities will provide both financial and nonfinancial support, focusing on critical areas such as regulatory compliance, business management skills, operational capacity-building, working capital and infrastructure refurbishment.

In addition, Tau said the initiative would require strong partnerships with key stakeholders, including private-sector partners, health authorities, fast-moving consumer goods manufacturers, provinces and the Department of Cooperative Governance and Traditional Affairs to ensure a comprehensive support structure to drive sustainable growth, improve market access and foster economic resilience within South African townships.

“The expected outcomes of this initiative include increased income and job creation for local spaza shop owners, the strengthening of township economies, and improved competitiveness of locally owned businesses.

“Additionally, beneficiaries will gain enhanced supply chain access, leading to lower operational costs and increased profitability, while skills development programmes will equip shop owners with essential business management capabilities, fostering self-reliance and long-term sustainability,” Tau said.