South African spaza shops impacted by COVID-19 have been thrown a financial lifeline by a recently launched public-private initiative.
The new venture helps small businesses secure government funding to replenish stocks at discounted prices, Engineering News reports. The deposited funds are linked directly into a bank card that can only be used to buy stock from wholesalers approved by the Small Enterprise Finance Agency (Sefa). The funds cannot be withdrawn as cash.
The solution was created by Standard Bank and Sefa in response to the economic impact of the pandemic.
To qualify for funding, spaza shops must be owned by South African citizens, registered on the government’s small business portal, hold a municipal permit to trade and be registered for tax. Qualifying spaza shop owners can apply at any Standard Bank branch.
