The Portfolio Committee on Small Business Development is calling for an urgent intervention to address delays in the issuing of operating licences to spaza shops by municipalities.
It has described the licensing backlog as the primary constraint limiting access to the Spaza Shop Support Programme.
The committee remarks come after it received briefings on the issuing of operating licences by municipalities across the country and on the implementation of the Spaza Shop Support Fund (SSSF).
The reports were presented by the Department of Cooperative Governance and Traditional Affairs (CoGTA) and the Department of Small Business Development (DSBD).
According to CoGTA, of the 81 039 spaza shops registered nationally, only 18 722 are licensed or permitted to operate.
The Chairperson of the Committee, Masefako Dikgake, expressed disappointment with a low number of permits issued, adding that the licensing bottleneck is undermining the very objective of the SSSF.
“If spaza shop owners cannot obtain the required permits timeously, they are effectively locked out of funding and growth opportunities.
Municipal processes must not become barriers to economic participation,” said Dikgake.
Regarding the funding side, DSBD reported that 3 797 applications have been received since the inception of the programme.
According to the department, 1 683 applicants submitted licences or operating permits and progressed in the process, while 1 370 could not proceed due to the absence of the required documentation.
“The committee noted that 990 spaza shops have been approved to a stock value of R39.6 million.
However, it stressed that the licensing gap remains the primary obstacle to scaling up support and ensuring broader participation in the fund,” remarked Dikgake.
To help address the licensing challenges, both departments indicated that “municipalities are being encouraged to issue conditional or temporary trading permits, provided that health requirements are met.” The fund considers applications only from spaza shops that possess Certificates of Acceptability, trading permits (including conditional licences) or full operating licences.
