Portfolio Committee Takes Actions On Concerns Brought Up During Oversight Visits To Spaza Shops

PUBLIC STATEMENT

DATE: 27 March 2026

PORTFOLIO COMMITTEE TAKES ACTIONS ON CONCERNS BROUGHT UP DURING OVERSIGHT VISITS TO SPAZA SHOPS

The Portfolio Committee on Economic Development and Tourism conducted oversight visits to a number of spaza shops throughout KwaZulu-Natal on March 23 and 24, 2026, to confirm whether beneficiaries received assistance under the Zimele Traders Fund.

The Fund was created in February 2024 by the Economic Development, Tourism, and Environmental Affairs to help spaza shop owners who had been severely impacted by COVID-19 lockdowns and the July 2021 looting.

The initiative was carried out by Ithala Development Finance Corporation, an EDTEA entity, and provided each spaza shop owner with a grant of R20 000 in the form of trading stock. A total budget of R10 million was set aside for this initiative, which aimed to reach 500 spaza shops throughout the province.

During oversight visits this week, beneficiaries expressed serious concerns about receiving unrequested items, expired food, and stock valued at less than R20,000.

In response, the department was called to a special, lengthy meeting by the committee chairman, Honourable Mafika Mndebele, where a comprehensive report was presented and immediate corrective actions were decided upon.

The committee has decided that a thorough investigation into what went wrong is necessary. In cases where there were deficiencies, all impacted beneficiaries must be fully compensated. Every beneficiary who was mistreated or victimized must receive a formal apology.

In order to enhance future implementation of the programme, the program should switch to a voucher system that will enable beneficiaries to select stocks that are appropriate for their businesses. A specialized team should be sent to visit each beneficiary and address any issues. The Committee will be presented with a comprehensive progress report.

Mndebele summarized the meeting’s results and emphasized that the committee’s top goal was to guarantee that people were empowered. 

“Our people must benefit from this program. Failures that jeopardize beneficiaries will not be accepted. To guarantee adequate assistance, training, and long-term expansion of spaza shops, the department must collaborate closely with municipalities, especially the Local Economic Development (LED) units. The committee will continue to exercise strict oversight to ensure accountability and that public resources deliver real economic benefit to communities,” continued Mndebele.

ISSUED BY THE KWAZULU-NATAL LEGISLATURE COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF ECONOMIC DEVELOPMENT AND TOURISM PORTFOLIO COMMITTEE, MR MAFIKA MNDEBELE (0837835164)

Enquiries: Mr Bongani Tembe 0823272600