JOHANNESBURG - More than 18,000 spaza shops out of the 81,000 registered nationally have been licensed to operate, but thousands are still waiting for approval from municipalities.
The slow pace of issuing operating licences has become a major concern, as many small shop owners cannot access funding, grants or support programmes without being formally registered.
READ: Spaza support fund | Only a fraction of the R500 million has been disbursed
According to Small Business Development Portfolio Committee chairperson Masefako Dikgale, municipalities are partly to blame for the delays.
During oversight visits, the committee found that some municipalities still process applications manually, which significantly slows down approvals.
Government is now considering a new licensing bill aimed at digitising the application process. The proposal would allow spaza shop owners to apply electronically instead of relying on paper-based systems.
If implemented, the changes could speed up licensing and make it easier for small businesses to formalise their operations and access financial support.
In the meantime, authorities say efforts are continuing to process the backlog of applications across the country.