Question NW309 to the Minister of Small Business Development
05 March 2025 - NW309
Luthuli, Mr BN to ask the Minister of Small Business Development
(1) (a) What (a) total number of applications have been received for the Youth Challenge Fund to date, (b), number of the applications have been (i) approved and (ii) declined, (c) is the total value of the approved applications and (d) is the demographic breakdown of (i) successful and (ii) unsuccessful applicants in terms of age, gender, and geographic location; (2) (a) how does her department plan to support spaza shop owners in accessing resources and training to ensure that their businesses comply with regulatory requirements and thrive in the formal economy and (b) what measures is her department implementing to address the challenges faced by spaza shop owners in registering their spaza shops, particularly in township and informal areas? NW333E
Reply:
I have been advised that:
1. (a) Since inception in December 2021 to date, the Youth Challenge Fund has received more than 3 437 applications
(b) (i) 90 applications have been approved
(ii) More than 2094 applications have been rejected, declined or closed, the remaining applications are still being processed and reviewed.
(c) R 274 317 446 has been approved.
(d) (i) R 47 330 603 has been disbursed to 20 women youth-owned businesses, R 144 795 150 has been disbursed to 50 men youth-owned businesses.
(ii). The ages of the recipient range between the ages of 18-35 years at approval.
The table below depicts the funding spread across nine (9) provinces:
|
Province |
Value of disbursement (R) |
|
Eastern Cape |
9 429 687 |
|
Free State |
7 649 568 |
|
KZN |
14 816 747 |
|
Limpopo |
18 989 403 |
|
Mpumalanga |
13 409 067 |
|
Northern Cape |
26 474 026 |
|
Western Cape |
18 391 301 |
|
Gauteng |
64 026 877 |
|
North West |
18 939 076 |
|
Total |
192 125 752 |
2. (a) As of 31 December 2024, The Small Enterprise Development Finance Agency (SEDFA) in collaboration with Wholesale and Retail SETA had commenced Phase 1 of the Spaza Shops Training Project. During this period, 703 spaza shop beneficiaries attended the scheduled training at the cost of R2.1 million and 641 of these attendees received stock to the value of R6500 on average, per beneficiary. Furthermore, plans are underway to train spaza shop owners across the country between SEDFA and the South African Bureau of Standards (SABS). The purpose is to undertake awareness training and food handling practices with spaza shop owners.
(b) Under the current legislation, the responsibility for registering Spaza Shops is with Municipalities. The Department of Small Business Development plays a supportive role, assisting both Municipalities and Spaza Shop owners who seek to register their businesses and require financial or non-financial support. However, to enhance this process, the Department deployed Provincial and District champions to various municipalities across the country to monitor the registration of Spaza Shops towards the registration deadline. Additionally, the department is increasing its capacity to assist and support this process across the districts in the country.