The Count Me in Movement has taken a firm stand against the “systematic exclusion” of South Africans within the current Spaza Shop regulatory framework, calling in the process for a significant overhaul of South Africa’s spaza shop regulatory system.

The movement said the current system excludes township business owners from accessing crucial government support while the nation continues to grapple with a burgeoning informal retail sector.

This comes after the recent government announcement of the R500 million Spaza Shop Support Fund (SSSF), which seeks to empower eligible South African spaza shop owners in both townships and rural areas, offering them a lifeline to improve, expand, and sustain their businesses.

However, the Count Me in Movement argues that many local entrepreneurs remain locked out of this initiative, primarily due to excessive compliance burdens, fragmented registration processes, and pervasive barriers within the licensing system.

In a statement released on Friday, the movement appealed directly to Small Business Minister Stella Ndabeni-Abrahams, urging her to address these pressing challenges. They disclosed that while spaza shops play a pivotal role in township economies, a lack of streamlined and accessible compliance requirements often deters local operators from benefiting from government initiatives.

“Despite playing a critical role in township economies, many of these businesses remain locked out of the Spaza Shop Support fund due to excessive compliance. burdens, fragmented registration requirements, and systematic barriers in the licensing process,” it said.

The movement said unregistered spaza shop owners, most of whom are undocumented foreigners have made the process very difficult for local spaza shop operators.

“Adding to the challenge is the rapid proliferation of unregistered spaza shops, operated by undocumented foreign nationals, who are not subjected to the same inspections or regulatory scrutiny–creating an uneven and unfair playing field for local entrepreneurs.

“Our local entrepreneurs are being set up to fail by a system that expects full compliance with scattered, expensive and inaccessible requirements. The current model disproportionately impacts South African spaza shop owners who lack the digital access, financial resources, or administrative support required to navigate complex state systems,” the movement added.

siyabonga.sithole@inl.co.za

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