Nedbank and Department of Small Business partner to assist spaza shops and general dealers
DURBAN – Nedbank has partnered with the Department of Small Business Development to help spaza shops and general dealers to access support.
Nedbank will issue procurement cards to store owners, through the department’s Small Enterprise Finance Agency’s (SEFA) Khula Credit Guarantee Scheme. The scheme allows qualifying spaza shops and general dealers to enjoy discounted prices when they purchase a basket of pre-approved goods from selected wholesalers, using the card.
The card has been pre-funded up to an amount of R3 500. These bulk-buying deals have been negotiated by the Department of Small Business Development.
Nedbank will assist owners with registering for the support scheme and completing the application form with the required supporting documents.
Owners will need to bring the following documents to ensure their applications can be processed:
1. A valid South African identity document
2. A valid and original municipal trading licence/permit to trade, or business licence in case of a general dealer (copies are not acceptable).
3. Only permits or licences issued by the municipality, not a councillor, are valid.
%%%twitter https://twitter.com/Nedbank?ref_src=twsrc%5Etfw">@Nedbankand Boxer @BoxerStores for your support.
— Department of Small Business Development (@DSBD_SA)
The process of getting the new card into the hands of the store owners is intended to be quick and easy. Once an application has been lodged and approved by the Department of Small Business Development, the shop owners will receive communication to collect their preloaded cards.
The entire process, from application and vetting by the department to the readiness of cards for collection, could take a minimum of five days. Once the card is ready for collection, the shop owner is immediately able to purchase at participating wholesalers and retailers.
Dayalan Govender, Managing Executive of Nedbank’s Card, Payments and Transactional Business said, "We leapt at the opportunity to support this initiative by the Department of Small Business Development and it comes on the back of other relief measures by Nedbank to help our clients and society as a whole through this challenging time. As a bank, we are cognisant of the fact that small businesses are at the heart of our economy, this is why we have also waived fees for both the spaza shop owners and general dealers".
"Once these new cards are distributed, Nedbank will work with SEFA to ensure that owners get the necessary support to continue using the cards, so the solution is applicable beyond the lockdown period," added Govender.
Nedbank will be offering this service through 277 branches and 36 Boxer stores nationally, which continue to operate during the lockdown.
Last month, the bank announced that it will be helping facilitate the distribution of loans to small businesses for the newly launched South African Future Trust (SAFT).
SAFT has been established by Nicky and Jonathan Oppenheimer. The main aim of the SAFT is to mitigate the immediate economic impact of the Covid-19 crisis by keeping companies in business and protecting jobs, in order to fast track South Africa’s economic recovery after this pandemic.
The Trust will extend direct financial support to employees of South African small, medium and micro-sized businesses who are at risk of losing their jobs or will suffer a loss of income because of Covid-19.
Four of South African banks, including Nedbank, will administer the scheme at no cost to the fund. The banks have also waived their normal credit fees for all loans approved under the SAFT scheme to maximise the funds available to recipients.