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CHARTING NEW GROWTH PATHS IN THE TOWNSHIP ECONOMY
In this issue of Township Economy, we examine how cash remains the primary engine fuelling trade and livelihoods in our communities, even as subtle but signi cant shifts begin to nudge businesses and consumers towards new forms of transaction. We explore how cash dominates and assess what the future may hold as digital alternatives steadily make headway.
Understanding township consumers is a theme woven throughout, with insightful analysis on the unique priorities and evolving purchasing habits that de ne daily life. From informal markets to the digital frontier, the rise of online buying and contactless payments is transforming how residents transact, offering a glimpse of a modernising marketplace full of promise and fresh challenges.
We’re proud to feature a thought-provoking piece from Zama Kweyama of Santam Emerging Business, whose perspectives on unlocking insurance solutions for small, underserved businesses point the way to more inclusive nancial protection in our townships.
Millicent Maroga from HEINEKEN South Africa shares an inspiring story of reinvention, illustrating how tavern culture is being refreshed and recast to serve a new generation, preserving
heritage while opening doors to fresh opportunity and professionalism.
Having attended HEINEKEN’s landmark event in Alexandra township, focused on the transformation of local taverns, I offer personal re ections on the energy, insights and optimism accompanying my visit – indicative of broader trends in township enterprise.
We also shed light on a new national support initiative designed to uplift spaza shops, the unsung cornerstone of township commerce. Alongside this, we celebrate homegrown innovation by spotlighting inventive problem-solving at the grassroots level, where local entrepreneurs create solutions tailored to community needs.
Finally, this edition considers how large corporations can serve as catalysts for township development by integrating local products into their value chains, ensuring that township-made goods nd their rightful place on the national retail stage. Every story gathered here is a testament to the resilience, creativity and boundless hope that animate our township economy. As you turn each page, I hope you nd inspiration, insight and renewed purpose.
Busani Moyo EDITOR
ECONOMY is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.
Township consumers are a vital, misunderstood market segment.
Digital payments gain ground over township cash.
Mobile card machines are reshaping township business growth.
THE SPAZA SHOP
Removing barriers is key to the Spaza Shop Support Fund success.
20 TOWNSHIP TAVERNS
Township taverns transform to become community opportunity hubs.
Township taverns should be aspirational, not hidden. 23 INNOVATION
Grassroots programmes showcase township innovation and resilience.
26 RETAIL E-COMMERCE
E-commerce drives township jobs and entrepreneurship.
Listing with retailers unlocks mass-market access. 28
Microinsurance tools: the answer to underserved areas.
TOWNSHIP CONSUMERS: UNDERSTANDING BEHAVIOUR AND NUANCES
With an estimated spending power of nearly R1-trillion, township consumers form a vital and growing part of South Africa’s economy. Yet they remain misunderstood by brands and markets that don’t understand the nuances, habits and socioeconomic factors that shape their spending, writes THANDO PATO
According to South African digital marketing agency Rogerwilco’s 2024 Township CX Report, township consumers have an estimated spending power of R900-billion, which makes them pivotal drivers in the South African economy. However, what are the nuances, spending behaviours, segments and economic levers that drive this diverse, culturally rich and self-determined market?
EXISTING AND EMERGING CONSUMERS
Mongezi Mtati, senior brand strategist at Rogerwilco, says one of the biggest misconceptions about township consumers is that they are homogeneous.
“What our data shows, time and time again, is how diverse the township consumer base is. Yes, they are brand conscious, and yes, they are loyal to certain brands, but they are not a monolith. Yet brands often target them as ‘the township consumer’ rather than segmenting them into categories, such as working mothers or young men who like football. This causes the consumer to feel like the brand messages don’t clearly target them or address their needs.”
Mtati says while the township consumer base has evolved, it has always comprised three distinctive segments. “There are three types of consumers: the weekday daytime consumer, people who trade or work in the township, or are unemployed. Then there are the evening
consumers, who work outside of the township and return in the evenings. This segment has another component that also includes people who don’t live in the township but frequently visit in the evenings. The evening consumer’s needs are food, household necessities or entertainment and nightlife, all of which they source in the township,” he explains.
The third segment, he says, is the weekend consumer, and this, he explains, is partly made up of people who do not live in the township but visit over the weekend, either to see family or for recreation, entertainment and tourism purposes.
Township establishments, such as the now closed entertainment lounge Konka and popular restaurant Sakhumzi in Soweto, and Max’s Lifestyle Village and The Union Lounge, formerly known as Eyadini Lounge, in Umlazi, Durban, attract the evening and weekend consumer segments because they offer premium and aspirational entertainment experiences, similar to what is on offer in af uent urban hubs, but with kasi avour, he explains.
Mtati says an emerging consumer segment across townships is the premium consumer base, comprising professionals who opt to live in the township rather than the suburbs.
“In the past, people used to move out of the township once they started making money, but this is changing, and there is a growing trend among professionals to stay put. In our 2023 report, one of our questions was, ‘How much of your income do you spend in the township?’ and over a quarter of respondents said they spend forty-nine per cent of their income in the township across the formal and informal retail sector.”
Tiger Brands says township consumer grocery shopping habits lean towards small-basket shopping multiple times a week – often daily – at nearby spaza shops. “These trips are mostly for top-up items, driven by limited disposable income and the convenience of buying what’s needed, when it’s needed.”
RETAIL DYNAMICS: FORMAL VS INFORMAL
According to Tiger Brands, the informal retail economy is a signi cant nancial contributor to the fast-moving consumer goods (FMCG) sector. “Informal retail, such as spaza shops
and street vendors, makes up twenty-six per cent of South Africa’s FMCG market, worth around R197-billion a year. These businesses are growing faster than many traditional retailers and play a crucial role in everyday consumer purchases,” says its spokesperson.
Mtati says previous Rogerwilco reports showed that since 2021, there has been a growing shift towards the formal retail sector for the purchase of monthly groceries and household goods. “What we’ve noticed is that consumers will buy a new product or brand that they haven’t tried before at a spaza shop. If they enjoy it, then at the end of the month, when they do their monthly grocery shopping, they will buy it in bulk at a supermarket in the shopping centre or mall in the township.”
Tiger Brands says the consumer relationship with the informal economy is more complex, and consumer shopping patterns are diverse. “We found that township consumers don’t only buy small top-up items in townships, as most assumed. Shopping habits are more frequent and diverse than expected. Many consumers shop three to four times a week, and larger, bulk-size packs are in demand, showing a mix of both top-up and planned buying behaviour that often outpaces the formal sector in terms of trip frequency.”
Like many consumers around the country, explains Tiger Brands, price is a key factor driving spending patterns among township consumers, particularly for groceries, but despite this, there is brand loyalty.
“Many consumers in townships consistently support brands that are familiar, local and culturally relevant. There’s a strong preference for homegrown products that speak to their identity and offer real value. There’s a noticeable shift toward locally made and township-rooted brands, whether food, clothing, or personal care. These brands connect culturally, feel more relatable and are often more accessible than big-name alternatives,” it says.
CUSTOMER EXPERIENCE MATTERS
Stats from the 2024 Township CX Report show that 63 per cent of respondents were looking for improved customer experiences from the brands they engaged with.
“The perception among this consumer group is that their experience with brands in township settings – in-store or via delivery –differs from when they are in a hub outside the township. Customer experience can
“WHAT OUR DATA SHOWS, TIME AND TIME AGAIN, IS HOW DIVERSE THE TOWNSHIP CONSUMER BASE IS. YES, THEY ARE BRAND CONSCIOUS, AND YES, THEY ARE LOYAL TO CERTAIN BRANDS, BUT THEY ARE NOT A MONOLITH.”
– MONGEZI MTATI
tarnish an omnichannel strategy if it is not done right. People are looking for consistency across platforms, both physically and virtually. The most effective brands align their digital campaigns, online and in-store offerings across locations,” Mtati explains.
Tiger Brands says a common misconception about the township economy is that digital usage is low. Smartphone ownership and internet access are much higher than most assume. Over half of township residents access the internet regularly, and around 53 per cent own smartphones.
“We have seen a rise in digital con dence and social buying because more township consumers are going online to discover and buy products. Online shopping jumped
from thirty per cent in 2022 to forty per cent in 2024. WhatsApp groups, stokvels and recommendations on social media are playing a bigger role in in uencing what and how people buy.”
Word-of-mouth, TV and social media are the platforms township consumers use most to discover and connect with brands, says Mtati. However, it’s the brands that show up authentically in the community –not only to trade, but also by assisting and addressing socioeconomic challenges – and connect with kasi culture that build trust and gain loyalty.
Mtati says brands must build better digital engagement strategies to harness the host of opportunities within this consumer base. “One of the biggest things the data shows us is that brands underinvest in digital engagement with township communities. So, if a consumer is in another economic hub or suburb, a brand will target them via digital or social media advertising, but the moment they are back in the township, that consumer becomes invisible and targeted communication ceases.
“In our 2024 report, nearly fty per cent of consumers told us that they nd out about brands through social media or some form of digital word of mouth, and yet only thirty-four per cent of township
Mongezi Mtati
CASH IS STILL KING BUT FOR HOW LONG?
Even though cash remains the undisputed king of the township economy, ITUMELENG MOGAKI explores how digital payments are quietly gaining ground, driven by mobile card machines, rising smartphone use and a new generation of traders rethinking how business is done
Small, informal convenience stores, often operating from the front room of a home or a makeshift container, emerged as a vital part of township life during apartheid when access to formal retail outlets was limited or outright denied to black South Africans. For decades, spaza shops have served their communities not just as retail hubs, but also as pillars of social and economic survival, driven largely by one thing: cash. Today, that story is beginning to shift, slowly but notably. Mobile money, card readers and digital wallets are starting to make inroads into this deeply entrenched cash-based economy. Yet, despite this wave of innovation, cash still reigns supreme in kasi commerce. The question is: for how long?
WHY CASH STILL DOMINATES
Despite a gradual growth of digital adoption, cash remains king in township economies.
It’s trusted, tangible and resilient in areas with unreliable power, patchy networks and limited digital literacy. Informal traders avoid bank fees and tax exposure by staying off the books, while cash suits small, personal transactions typical of spaza shops and other informal traders.
Still, momentum is building, driven by the youth, cash safety concerns and government and private sector support through incentives and subsidised payment tools. The shift is gradual, but the foundation for a more digitised township economy is rmly being laid.
THE SHIFT TOWARD DIGITAL IS QUIETLY GROWING
Mobile payment platforms such as Yoco, Kazang and Flash, along with mobile wallets linked to services like Shoprite Money Market, Capitec Pay and MTN MoMo are slowly taking root. Some spaza shops are now accepting tap-and-go cards or QR code payments via
apps like SnapScan or Zapper. In certain areas, delivery services such as Yebo Fresh and Pick n Pay’s ASAP are helping shop owners restock with digital payments.
Several factors are driving this shift:
1. Growing smartphone access: affordable smartphones are making digital platforms more accessible to consumers and shopkeepers, especially with user-friendly mobile money apps designed for lower-income users.
2. Improved safety: digital payments reduce the need to store cash on-site, lowering the risk of theft and enhancing safety for both traders and customers.
3. Youth-driven adoption: tech-savvy younger consumers are driving demand for digital payments, prompting shop owners to adapt or risk losing relevance.
4. Supportive initiatives: government and private sector efforts, such as banking incentives, subsidised point-of-sale devices and zero-rated services, are helping reduce the barriers to digital adoption.
BRIDGING THE GAP BETWEEN CASH AND DIGITAL
Lesaka Technologies is a South-African nancial technology company playing a key role in helping informal township businesses, particularly spaza shops and taverns, navigate the shift toward digital payments, while still supporting the realities of a predominantly cash-based economy.
As Lincoln Mali, CEO of Lesaka Technologies, explains: “Cash will still remain a signi cant component of the township economy for many years to come.”
Recognising this, Lesaka offers what Mali describes as “the most comprehensive solution set” tailored to informal merchants. “We offer choice to informal merchants, including cash solutions. Our supplier payments platform reduces cash risks and greatly simpli es payment and reconciliations. Our cash vaults allow merchants to digitise cash holdings immediately without a trip to the bank. Our card solutions also provide immediate access to funds,” he says.
This holistic approach allows merchants to meet the needs of both cash-paying and card-using customers while gradually integrating digital tools into their operations.
According to Mali, Lesaka’s model is already delivering measurable results. “Our supplier payments platform greatly enhances ef ciencies and reduces cash risks for merchants and suppliers.”
He highlights the example of a dairy supplier that previously collected up to R30 000 in cash daily on its township delivery route in Cape Town, a model that posed serious risks to both drivers and recipients. “Joining our platform signi cantly reduced cash holdings, improving security for all,” Mali says.
Mali adds that their network of cash vaults continues to be a game-changer for merchants. “Our cash vaults bring great ef ciency and time savings. Merchants no longer have to close their shops and travel to the bank to deposit cash. They can deposit cash into the closest vault, saving time and cash deposit fees and having immediate access to the cash.”
“WE OFFER CHOICE TO INFORMAL MERCHANTS, INCLUDING CASH SOLUTIONS. OUR SUPPLIER PAYMENTS PLATFORM REDUCES CASH RISKS AND GREATLY SIMPLIFIES PAYMENT AND RECONCILIATIONS.”
– LINCOLN MALI
LESS PHYSICAL CASH, MORE CONTROL
Monde Shange, founder of Monde Shange Kasi Hub, in Harrismith in the Free State province, says that while cash is still common in the township economy, digital payments are helping small businesses grow and operate more ef ciently.
“I started using the Yoco machine a couple of years ago for my business, but I don’t think I would’ve added card payments if my customers hadn’t asked for it.”
Shange says he nds that during the week, especially mid-mornings, he gets a lot of delivery orders from people who prefer using card payments, mostly working professionals, students and taxi operators. “On weekends and at month-end, it’s a more even mix between cash and card. So, I give customers the choice. Some pay into my personal or business account, but since introducing Yoco, many just prefer to tap and go.”
He adds that he appreciates how Yoco supports small businesses with exible loans. “If your sales are steady, it will offer you funding to help you grow, but without forcing a xed repayment. It adjusts based on your income, which is a big help when you’re still building your hustle.”
Shange concludes: “Yoco has helped grow my and many other businesses, and I do recommend it to other entrepreneurs all the time. The app is user-friendly, works well on Android and acts like a business assistant. It shows me which products are selling, tracks performance and helps me stay organised.”
GOING DIGITAL ONE STEP AT A TIME
Albert Yeboah, who runs a salon in Benoni, on the East Rand of Gauteng, says that while cash still dominates his daily transactions, digital payments are steadily gaining traction, especially when they’re simple and secure. “Most of my customers still prefer to pay in cash, but I do get a few who ask to pay digitally, especially those who bank with Capitec. In those cases, it’s easy for them to send the money straight to my SOLmate account using Pay@, and I receive the funds instantly, which is convenient for both of us,” he says.
Follow: Lincoln Mali www.linkedin.com/in/lincoln-mali-34666233
Monde Shange www.instagram.com/mondeshange/?hl=en
“MOST OF MY CUSTOMERS STILL PREFER TO PAY IN CASH, BUT I DO GET A FEW WHO ASK TO PAY DIGITALLY, ESPECIALLY THOSE WHO BANK WITH CAPITEC.”
– ALBERT YEBOAH
He adds: “I haven’t started using a card machine yet, even though I’d really like to. There’s de nitely interest from my customers who want to tap or swipe. So far, I’ve mostly
Lincoln Mali
Albert Yeboah
HOW TAP-TO-PAY TECH IS CHANGING TOWNSHIP BUSINESS
ITUMELENG MOGAKI finds out how mobile card machines are reshaping township trade and helping informal businesses grow in the digital economy
South Africa’s townships are embracing change, one beep at a time. From spaza shops and hair salons to street vendors, more and more informal traders are gradually moving away from cash and starting to use mobile card machines that accept tap-to-pay and QR payments.
AFFORDABLE POINT-OF-SALE DEVICES MAKE A DIFFERENCE
Affordable point-of-sale (POS) devices from platforms such as DebiCheck, Yoco and iKhokha are making it easier and safer for small businesses to accept card payments.
“POS devices have brought kasi traders into the digital economy, bridging the gap between cash-only operations and scalable, reliable business practices,” says RyanPearce, head of sales at Altron FinTech. “This shift is helping township businesses think and operate more like structured enterprises.”
the next big leap, Pearce says, is making it easy for people to pay regularly using digital methods. This is especially helpful for traders who do lay-byes, rent rooms or lend money without formal contracts. That’s where tools like DebiCheck, made for South Africa, are changing the game.
CHANGING PAYMENT HABITS AMONG CONSUMERS
“In townships where customer trust is built over time, DebiCheck gives traders a secure way to collect regular payments without having to chase after them. It reduces admin and risk and, importantly, it keeps the relationship professional,” says Pearce.
He adds that these tools are arriving at the right time. “As more South Africans become banked and receive wages or grants into their accounts, cash is slowly giving way to cards and digital wallets, especially among younger and working-class consumers.”
those offering credit or lay-byes, DebiCheck allows them to manage repayments securely and con dently.
“With more customers carrying less cash and more cards, it’s now a bigger risk not to accept digital payments. That’s why we’re collaborating closely with traders to provide affordable, simple solutions that meet their needs,” Pearce says.
A TOWNSHIP BUSINESS’S DIGITAL PAYMENT EXPERIENCE
Letlhohonolo Mphaka, owner and founder of Saw_cy, an eatery in Dube, Soweto, says card payments now dominate his business, particularly on weekends, thanks to the growing popularity and convenience of platforms like Yoco.
“About a year ago, we saw a clear shift in how people prefer to pay. Right now, around seventy per cent of our sales are done using cards, and that’s a big change from just a few years ago when cash was king. You especially see the card activity increase over weekends and around payday. During the week, the numbers are a bit more balanced, maybe sixty per cent card and forty per cent cash because we cater more to our local walk-in customers then,” Mphaka explains. He says they’ve encouraged digital payments, not just for convenience, but also for safety. “It’s less risky not having to keep too much cash on hand, and the customers appreciate having the option to tap or swipe.”
On using Yoco, Mphaka says the machine has been a game-changer from a business point of view. “It helps manage our nances better and allows us to track sales more accurately. Before we started using Yoco, I realised we were losing money by sticking to cash only, especially when customers wanted to make bigger purchases and didn’t have enough cash on them.”
Altron FinTech is a division of Altron,a South African technology companythat provides payment and nancial technology solutions. While POS machines were the rst step,
He also says spaza shop owners are taking note. “By adopting digital payments, they’re able to sell more (because customers can pay even when they don’t have cash), protect their takings from theft and track sales through their POS dashboards. For
He concludes: “Cash still has a role, especially in the local market, but it’s clear we’re moving toward digital. Digital payments are not just more common; they’re expected. It’s helped us grow and operate more professionally.”
Follow: Ryan Pearce www.linkedin.com/in/ryan-pearce-958a0b48 Saw_cy www.instagram.com/saw.cy/?hl=en
Entrance to Saw_cy an eatery in Dube, Soweto
Ryan Pearce
CAN THE SPAZA SHOP SUPPORT FUND DELIVER ON ITS PROMISE?
A bold government initiative aims to formalise, finance and uplift South Africa’s spaza shops, but regulatory hurdles and systemic challenges threaten to hold it back, writes BUSANI MOYO
South Africa’s township economies have long been both an economic lifeline and a social hub for millions. At the centre of this vibrant network are spaza shops – small, usually family-run convenience stores that offer everything from bread and milk to airtime and household essentials. These shops do far more than simply sell goods: they provide local employment, foster micro enterprises and keep money circulating in the township.
Yet structural inequalities, regulatory hurdles and, most recently, tragic lapses in food safety have threatened the survival of these grassroots businesses. Against this backdrop, the Minister of Trade, Industry and Competition, Parks Tau, and the Minister of Small Business Development, Stella Ndabeni-Abrahams, launched the Spaza Shop Support Fund in April 2025. The initiative marks a major government intervention aimed at stabilising, formalising and uplifting township retail.
We take an in-depth look at what the fund entails, why it was created, the bene ts it offers and the teething challenges that threaten to slow its impact.
REVITALISING TOWNSHIP RETAIL: WHY THE FUND WAS LAUNCHED
“The Spaza Shop Support Fund is a governmentbacked initiative aimed at revitalising township retail by supporting South African-owned, community-based convenience
shops, commonly known as spaza shops,” explains Mziwabantu Dayimani, CEO of the National Empowerment Fund. “These enterprises are critical to local communities, offering accessible goods and services and contributing to job creation. However, many face structural challenges, including limited access to nance, regulatory noncompliance and growing concerns around food safety.”
The urgency to act followed a national tragedy: in late 2024, several children died from foodborne illnesses linked to unregulated food products sold through informal retail channels. In November 2024, foodborne illnesses were formally declared a national disaster. President Cyril Ramaphosa responded with a clear mandate: to formalise and support spaza shops through targeted interventions, improve food safety and infrastructure and create pathways to long-term business sustainability.
However, as Benji Seitlhamo, acting director of economic development facilitation at the City of Johannesburg, points out, deep-rooted economic factors were also at play. “It’s a creative response from the national government emanating from concerns and complaints about the loss of the industry to undocumented foreigners. The government has come up with a programme that is a response to that, but also aims to assist local spaza shop owners to recapture the sector because previously it was operated and run by locals.”
UPTAKE, TEETHING CHALLENGES AND A CALL FOR REAL REFORM
The launch of the fund has triggered a wave of excitement and hope among township entrepreneurs. “The fund has
Mziwabantu Dayimani
WHAT SUPPORT DOES THE FUND OFFER?
The Spaza Shop Support Fund combines practical support, business development and financial grants.
FINANCIAL BENEFITS
Each qualifying spaza shop owner stands to receive up to R100 000 in blended support, broken down as follows:
• Up to R40 000 for stock: accessed via approved delivery partners, helping ensure shops can stock safer, better-quality products.
• Up to R50 000 for infrastructure and equipment: this segment is blended finance.
“Half of it is a grant to the operator, and half needs to be repaid, with a very low interest rate of about two-and-a-half per cent over six years,” Benji Seitlhamo, acting director of economic development facilitation at the City of Johannesburg, notes.
“It can be used for things like fridges, renovations, shelving and safety-compliant installations.”
• Up to R10 000 for training and compliance: this covers business management, digital literacy, introduction of point-of-sale systems and accounting systems.
NONFINANCIAL BENEFITS
Training and compliance support have been prioritised to help shop owners who often lack formal business skills or knowledge of regulatory requirements.
As Mziwabantu Dayimani, CEO of the National Empowerment Fund, points out:
“Through a combination of financial and nonfinancial support, the fund enables qualifying spaza shop owners to upgrade their operations, receive training and comply with regulatory requirements such as municipal registration and
owners to move out of informality by providing guidance on municipal registration and trading permits – a notoriously difficult barrier for many
Crucially, since many shops operate out of old or unsafe buildings or lack refrigeration, the fund’s infrastructure grants hope to improve both compliance and competitiveness in the retail space.
received over ten thousand applications,” says Dayimani, pointing to keen interest. However, a closer look at the gures casts a shadow: only “fourteen per cent of applicants are fully compliant and under review for funding. Eighty-six per cent are in the process of meeting compliance requirements, primarily relating to valid trading permits or municipal registration.”
For many observers, this is a glaring red ag. In a recent public announcement, Kgothatso Ramautswa of the South African Spaza Shops Association argued that the fact that such a small percentage of applications are fully compliant should not be viewed as a failure by the spaza shop owners, but rather a failure of the government to design a realistic and accessible funding support system. He contends that the requirements do not consider that most spaza shops operate in the informal economy, and the prevailing compliance framework does not suit the everyday realities of township entrepreneurs.
This sentiment is echoed on the ground, where shop owners say the process – although well-intentioned – is daunting and complex. The requirement to have up-to-date trading permits, formal business registration and meet health compliance measures has proven a stumbling block for the vast majority. Many township businesses historically operated without formal municipal registration, and current systems are not built to account for their unique setups.
The government has responded by launching a nationwide outreach campaign. “Rather than being excluded, applicants who haven’t met requirements are being guided step by step to help them become eligible,” Dayimani con rms. Outreach teams are crisscrossing the country, helping entrepreneurs navigate the complex paperwork and introducing
“THE GOAL ISN’T JUST ABOUT MONEY; IT’S ABOUT EMPOWERING LOCAL OPERATORS TO RECLAIM THEIR PLACE IN THE MARKET AND REBUILD TOWNSHIP ECONOMIES ON STRONGER, SAFER AND MORE COMPETITIVE FOUNDATIONS.”– MZIWABANTU DAYIMANI
training courses in business skills, point-of-sale technology and digital recordkeeping.
SYSTEMIC ISSUES REQUIRE SYSTEMIC SOLUTIONS
Ramautswa suggests solutions to the challenges: “Provide clear and consistent guidelines to all municipalities, ensuring centralised and understandable requirements nationally.” He also believes the government should implement a “phased approach to formalisation”, which will start by focusing on safety compliance so businesses can “gradually move towards full compliance”. He adds that the government should develop “a simple, userfriendly multilingual online registration platform to facilitate an effective registration process”.
Seitlhamo brings further insight from his work on the ground: “You are not forced to apply for the full R40 000 stock grant. We encourage owners to bring what they actually need, so more people can bene t. However, unless we x the compliance issue, we risk excluding too many genuine operators at the outset.”
LOOKING FORWARD: THE WAY TO GENUINE ECONOMIC INCLUSION
Despite the bottlenecks, there are early signs of promise. The government’s roadshows, collaborations with township business forums and targeted education initiatives are starting to make a difference. Creating digital hubs and
one-stop compliance centres – although still in the early phases – should also smooth the path.
From the views of involved stakeholders, it is clear that while funding and infrastructure improvement are necessary, they are not suf cient on their own. It is also clear that for the Spaza Shop Support Fund to truly succeed, the compliance model must be overhauled. It needs to better re ect the everyday realities of township trading and support honest, upward mobility rather than entrenching bureaucracy.
As Dayimani summarises: “The goal isn’t just about money; it’s about empowering local operators to reclaim their place in the market and rebuild township economies on stronger, safer and more competitive foundations.” Or, as Seitlhamo puts it: “It’s about making sure township entrepreneurs don’t just survive, but thrive – with dignity and compliance.”
APPLY
SPAZA SHOP SUPPORT FUND
Benji Seitlhamo
HOW TAVERNS ARE REDEFINING THE TOWNSHIP ECONOMY
Once seen as problematic or peripheral, South African taverns are undergoing a radical transformation – one that’s reshaping communities, challenging stereotypes and formalising township enterprise.
By BUSANI MOYO
When the invitation to the Tavern Transformation in Action event from HEINEKEN Beverages landed in my inbox, my reaction was mixed. The phrase sounded ambitious, perhaps even idealistic. Like many South Africans, my mental image of taverns was tainted by the usual headlines: concerns about safety, noise and the challenges of regulation. Could these spaces truly be transformed – economically, socially and in perception? With curiosity (and a dose of scepticism), I accepted the invitation. Nothing, as it turned out, could have
Community Policing Forum representatives, partners, such as the Primedia Group, South African Police Services and the Gauteng Liquor Board, and local business owners all converged for this event. This cross-section of stakeholders was a testament to the programme’s collaborative DNA – a fact that would become pivotal as the day unfolded.
Our rst stop was Thathe Restaurant, owned by Florence Rambuda – a proud participant in the HEINEKEN Beverages Tavern Transformation Programme. The morning kicked off with a township breakfast: think magwinya (vetkoek), spicy polony and other local favourites, and you get the idea. In a space that radiated authenticity and professional polish, it was easy to let go of my preconceived notions.
A NEW MODEL FOR TOWNSHIP ENTREPRENEURISM
Like many others, Rambuda’s success story reveals what can happen when township entrepreneurs are given genuine support.
“The community loves food from Thathe,” she proudly told us, “before we even mention alcohol. The tavern transformation has allowed us to grow. The most important thing is the safety of our patrons. You can safely invite your friends and family to our restaurant. The service is also good.”
Rambuda’s words underscore a core truth: township entrepreneurs aren’t just running
businesses, but stewarding community spaces. Compliance, she emphasised, isn’t a bureaucratic burden, but a path to dignity and sustainability. “I think tavern owners should take responsibility by obtaining licences.
They should comply because the same communities are our customers. I would like to tell my colleagues and fellow tavern owners that it doesn’t matter whether you are male or female; you can run a tavern if you have the necessary papers.”
THE CULTURE SHIFT EXPLAINED
As the HEINEKEN Beverages corporate affairs director, Millicent Maroga explained: “With the tavern transformation, we cannot have a South Africa that’s prospering but leaving the success of the township economy behind. These businesses are shaping popular culture and in uencing consumer practices and preferences.”
She described scenes that challenge stereotypes: “When outlets are premium, sanitation is good, there’s quality food, and the environment is comfortable, customers’ consumption behaviour changes. They’re not just there to drink; they want fun, good food, conversation and entertainment. By changing how outlets operate, we in uence patrons’ consumption.”
The emphasis on partnership – “we can only do this with partners” – was echoed by many throughout the day. Listening to different speakers at the event, I realised it’s not about HEINEKEN swooping in as saviour, but about co-creating solutions that enable local traders to be legal and admirable. “Let’s work together, let’s co-create, let’s coshape,” Maroga invited, “because ultimately, when we lift the standard of our taverns, we’re changing a lot of things.”
Gift Sedibeng
BUILDING SUSTAINABLE IMPACT
Our next stop was Siga Culinary, owned by Gift Sedibeng. This wasn’t just a tavern, but a transformed hospitality enterprise –modern aesthetic, well-trained staff and impeccable service. The upgrades are not hard to see, from a well-arranged parking space and bright signage to advertising screens you only nd at airports. Gift shared: “Since the transformation, we have created job opportunities within the community. Before the programme, we had only two staff members. Now, we have over fteen, both permanent and part-time.”
The impact extended to culinary and hospitality training for locals, raising not just employment, but also skill levels. Customers no longer just purchased takeaways; they
dined in, were greeted and served by waiters and enjoyed an experience reminiscent of the country’s fanciest urban eateries. “It’s important for an outlet to follow rules,” Sedibeng says, “because if you do not, there will be consequences. So, it’s important to comply, renew your liquor licence yearly and operate properly.”
For Sedibeng, compliance is about more than legality; it’s about building “safe, respected spaces where communities can connect and thrive”. His restaurant has become a magnet for positive activity and pride, demonstrating how regulatory diligence translates directly to community wellbeing
REIMAGINING TOWNSHIP ECONOMIES
Cleo Bodibe-Lushaba , client relations director at the Gauteng Liquor Board, put it succinctly: “When I walk into a township tavern now, I am amazed at how much has changed. The township economy is something to be proud of, not pitied.”
She re ected on how, during the COVID-19 pandemic, many tavern businesses couldn’t access relief, not because they didn’t exist, but because too many operated off the books, seen as “survivalist” rather than legitimate. Programmes like HEINEKEN’s, she stressed, are changing that. When tavern operators are compliant, they’re acknowledged as contributors to the economy. “The liquor space alone contributes billions of rand to the economy. We want to be recognised as mainstreamers in the economy.”
Her remarks highlighted a crucial aspect: for decades, township business owners were marginalised, sometimes viewed as the “problem”. Through this transformation effort, they’re being brought into the formal
“WHEN I WALK INTO A TOWNSHIP TAVERN NOW, I AM AMAZED AT HOW MUCH HAS CHANGED. THE TOWNSHIP ECONOMY IS SOMETHING TO BE PROUD OF, NOT PITIED.” – CLEO
economy – lawfully, with dignity, and with the knowledge that their contribution matters.
RESPONSIBLE PARTNERSHIP AND LASTING CHANGE
Throughout the day, a common refrain echoed: “We cannot do it alone.” From Rambuda at Thathe and Sedibeng at Siga Culinary to the regulators and police, everyone recognised the importance of collaboration. This was about creating more than just well-run taverns. It was about shifting mindsets, raising aspirations and enshrining the township tavern as a respected third space, a place neither home nor work, but an engine of culture, commerce and community.
Attending this event left me feeling that HEINEKEN Beverages’ approach is intentional and inclusive. I also discovered that the Tavern Transformation Programme is not charity; it is an investment in unlocking township potential, a blueprint for job creation and evidence that meaningful economic participation is possible everywhere in South Africa.
THE SURPRISE AND THE HOPE
As the day wrapped up, I found myself re ecting: my initial scepticism had been replaced by hope – even excitement. The taverns we visited weren’t just better-lit, more compliant spaces. They were beacons of what happens when vision, partnership and community are given a chance to work together. They provided job opportunities, fostered new social norms and brought dignity to an industry too often misunderstood.
The transformation I witnessed is proof that South Africa’s township economy can be reimagined – not just to survive, but to thrive. Lawful operation and compliance aren’t distant ideals; they are achievable, and real dignity and respect come with them. With initiatives like HEINEKEN Beverages’ Tavern Transformation Programme, township entrepreneurs are claiming their place as innovators, job creators and architects of a future we can all be proud of.
If there was one lesson I took home, it’s this: the next time you think you know what a South African tavern looks like, look again. You might just be in for a surprise.
Cleo Bodibe-Lushaba
FROM SHEBEEN TO SHOWCASE
By investing in taverns, we’re investing in the communities that support us and setting a new standard for what alcohol spaces should be: safer, smarter, inclusive and responsible, writes MILLICENT MAROGA , corporate affairs director at HEINEKEN Beverages
Igrew up between Limpopo and the East Rand – two places that taught me about struggle, survival and spirit. Etwatwa, Daveyton was home, even when the streets weren’t tarred and the lights weren’t always on. My mother sold sweets and snacks on the side of the road to make ends meet. However, my grandmother – a proud shebeen queen in Secunda – taught me about enterprise, resilience and the quiet dignity of earning an income and providing for your family.
My grandmother ran a shebeen from her dining room. It wasn’t ashy – just warmth, music and camaraderie. It was a place where neighbours and local miners gathered, laughter met stories, and women like her kept the lights on when no one else would.
So, when I talk about tavern transformation, it’s not a simple corporate initiative for me.
Taverns have always been part of the townships’ story. They came out of resistance, alternatives to the apartheid beer halls, places of music, social engagement, solidarity and melting political dialogue. Over the years, some of them became chaotic, unsafe and dominated by reckless drinking. Somewhere along the way, we lost the heart of what these spaces used to be, and could be. However, it doesn’t have to stay that way. The township is not a problem to be solved; it’s a place full of beauty, culture and economic potential.
In the heart of many South African townships, the tavern is more than just a place to drink. Yet too many of these taverns still operate in the shadows: under-resourced and lacking the infrastructure that ensures safety and dignity for their patrons. This legacy of marginalisation has allowed poor perceptions to persist. Instead of being seen as places of social cohesion or local pride, township taverns are often reduced to headlines about crime, noise and underage drinking.
The perception that taverns only harm is inaccurate. It limits investment, entrenches stigma and leaves a critical piece of our social and economic puzzle stuck in the past. It’s time for a reset.
THE PROBLEM WE’RE SOLVING
Today, South Africa has more than 30 000 taverns, many of which continue to operate informally. Many taverns lack the basics: the ability to safely transact, secure storage and kitchens, proper lighting or suf cient sanitation facilities. These gaps don’t just affect business performance; they create environments where safety is compromised and responsible drinking is nearly impossible to promote.
Women, in particular, are often excluded from these spaces, not by rule, but by culture. When taverns feel dirty or dangerous, when the only narrative is of disorder, women opt out. And when women opt out of a space, we all lose something.
At HEINEKEN Beverages, we believe where and how people drink matter as much as what they drink. That’s why we launched our Tavern Transformation Programme to help reimagine township taverns as elevated, inclusive and responsible social spaces.
FROM STIGMA TO SHOWCASE
Our vision is clear: township taverns should be aspirational, not hidden. They should be places where men, and especially women, feel safe, where the community gathers with pride and where consumers engage with alcohol in a more conscious and moderated way. Food should be at the heart of the space, not only alcohol.
TOWNSHIP TAVERNS SHOULD BE ASPIRATIONAL, NOT HIDDEN. THEY SHOULD BE PLACES WHERE MEN, AND ESPECIALLY WOMEN, FEEL SAFE, WHERE THE COMMUNITY GATHERS WITH PRIDE AND WHERE CONSUMERS ENGAGE WITH ALCOHOL IN A MORE CONSCIOUS AND MODERATED WAY.
Just as elegant bars and wine estates have built an experience around alcohol – they embrace dignity and cultural pride – so too can taverns. There is no reason a township venue cannot host a birthday celebration, an art exhibition, a jazz night or even a quiet coffee during the day. These are not pipe dreams; they are the future of local enterprise and township vibrancy.
This shift is not only about compliance, although that is core. It’s about identity. It’s about reclaiming the township tavern as a place of dignity and connection. And, it’s about rede ning what responsible alcohol consumption looks like in our local spaces.
MARCHELLE ABRAHAMS spotlights the bold ideas, sustainable models and homegrown solutions transforming South Africa’s townships, from backyard housing built with recycled bricks to youth-led waste innovation hubs and entrepreneur training programmes with national ambition
When people hear the phrase township economy, many think about spaza shops. However, other sectors fuel the informal economy in small but tangible ways. One only needs to look at innovation hubs such as Hustlenomics.
Founded by Nhlanhla Ndlovu, the impact-driven social enterprise replaces backyard shacks with durable equivalents built using recycled bricks.
Born and raised in Soweto, Ndlovu’s vision is to rid the township of shacks and empower backyard dwellers to fully own their homes via a home nancing model.
YOUTH AND ENTREPRENUERIAL EMPOWERMENT POTENTIAL
Another individual who sees the potential in the township economy is KK Diaz. The author and digital transformation advisor’s latest project is 10 000 Champions. Inspired by the untapped potential he’s witnessed in the townships, he says townships are bursting with creativity, resilience and drive, but are sadly overlooked systematically. “Townships are often treated as sites of poverty, not possibility,” says Diaz. “We wanted to ip that narrative.”
The initiative is a long-term journey involving a two-year training programme that will empower 10 000 young South Africans to become entrepreneurs, leaders and community builders.
Diaz is excited about the prospect of graduates making a success of things: “We want to
see local economies grow because locals are leading the growth.”
Referring to survival innovation at its best, the author describes how entrepreneurs are creating income and solving real problems with little to no resources. “From mobile car washes that use just two litres of water or no water to property stokvels and tuck shop owners doubling as logistics hubs, township entrepreneurs are constantly nding ways to do more with less,” he says.
Alexandra Water Warriors is one of eWASA’s most successful projects. “One of our focus areas is rural. It’s youth, townships, women and people with disabilities,” notes Basson. “The idea is that we use the EPR fees to address some of the challenges these areas face in relation to waste management.” EPR fees denote the amount producers pay the government to cover the costs of managing products in the post-consumer phase.
Alexandra Water Warriors initially started as a community-run environmental group in Alexandra with the explicit aim of ridding the Jukskei River of pollution. “We saw an opportunity to equip and empower it by providing it with additional infrastructure and resources,”
Basson explains.
Today, the initiative has expanded into a central recycling hub. People drop off, sort and manage their waste more effectively. The initiative has also encouraged locals to make a livelihood by selling different waste materials.
eWASA has converted old shipping containers into workstations. One container is speci cally designed for dismantling electrical and electronic equipment (EEE). Residents are invited to drop off their electronic waste. Those working in the containers can dismantle the electronics and sell them off as parts, thereby earning additional income.
10 000 Champions’ goal is to enable more township-born solutions to scale and compete with local and global companies. However, for this to happen, the incubator needs support from the government and corporate South Africa.
WASTE MANAGEMENT
One organisation with government backing is the EPR Waste Association of South Africa (eWASA). The nonpro t organisation (NGO) is responsible for the country’s waste management system and oversees over 70 projects. Etienne Basson, national projects manager at eWASA, says the extended producer responsibility (EPR) fees paid by waste producers cover waste-picker integration, semi-new development, training and awareness.
eWASA’s endgame is to establish township recycling hubs throughout the country, using its EEE-dismantling containers. “We’ll provide the infrastructure, equipment and the training with NGOs or small, medium and micro enterprises, and we’ll walk that journey in terms of empowering them and supporting them to become sustainable,” says Basson.
Despite the challenges their organisations face, Diaz and Basson remain positive about the future. These grassroots programmes are a re ection of township innovation, resilience and opportunity.
Follow: KK Diaz www.linkedin.com/in/kkdiaz, YouTube @KKDiaz1 eWASA www.facebook.com/eWasteAssociationSA www.instagram.com/ewasteassociationsa Alexandra Water Warriors www.facebook.com/AlexWaterWarriors
KK Diaz
Etienne Basson
SHIFTING TRENDS: THE RISE OF E-COMMERCE IN TOWNSHIPS
In townships, e-commerce is not just retail, but also a vehicle for entrepreneurship, job creation and industrialisation. It can be an impactful tool for solving South Africa’s perennial unemployment challenges, writes BONGANI SIBIYA
While many might not immediately associate townships with sophisticated e-commerce ecosystems, a growing digital infrastructure, increasing smartphone penetration and innovative local business models are rapidly changing this narrative. This emerging trend is not just about purchasing goods online; it represents a broader story of technological empowerment, economic inclusion and the entrepreneurial spirit that has always been the hallmark of township innovation.
We follow the shifting trends in the township economy to determine who and what drives them.
BRINGING TOWNSHIPS INTO THE DIGITAL WORLD
Tshepo Marumele, group head of external affairs and public policy at e-tailer Takealot, a key player in the township economy, explains why his company decided to participate in the township economy: “Townships are home to vibrant businesses. However, they have been excluded from the formal and digital economy.” Marumele adds that a lack of resources contributes to high unemployment levels among young individuals.
“High unemployment is experienced, with over sixty per cent of young people not in employment, training or school. As a leading South African e-commerce platform, we saw both an opportunity and responsibility to change that,” he says.
Marumele says the township communities’ response to e-commerce is encouraging, as many people engage in online businesses for different purposes. “Our Personal Shopper Programme, which now has over seven thousand active participants, supports over forty-four per cent of township consumers.” This programme allows individuals to earn an income by helping others with their online shopping needs on the Takealot platform.
THE CHALLENGES
As expected, various factors still challenge e-commerce uptake in the townships.
“We still need to address larger challenges, such as expensive data costs, high levels of crime and lack of sustainable infrastructure, which continues to hinder township residents and entrepreneurs from fully participating
in the e-commerce ecosystem as equals,” Marumele says.
He adds: “We advocate for lower data costs to make the digital economy more accessible to a broader audience, recognition of e-commerce as a key level for economic growth and transformation by the government, regulators and lawmakers, fair competition frameworks that allow local platforms to thrive and invest in South Africa’s digital future and regulatory harmonisation to ensure township-based sellers, drivers and resellers can participate in e-commerce freely and sustainably.”
A PROMISING FUTURE FOR TOWNSHIP E-COMMERCE
Nathi Phohleli, a young businessman from Bloemfontein, rst ventured into the world of online business by selling sneakers and iPhones. He shares his successful story that illustrates a promising future for e-commerce in townships. “I have seen a signi cant growth in my online business. Within eight months of starting, I was able to buy a car cash. Two months later, I saved enough to x the fence at home, which was my grandmother’s dream. Not only that, but I was able to help with basic needs at home and take care of my uncle’s daughter,” he says.
Phohleli adds that many unemployed graduates he knows have successfully started their online businesses, which have provided an opportunity for individuals to pursue their passions and earn a living while waiting for their dream job.
The stories of e-tailers such as Takealot and young entrepreneurs like Phohleli make it clear that the future of e-commerce in the townships is encouraging. They also show that e-commerce is not just retail, but also a vehicle for entrepreneurship, job creation and industrialisation. It can be an impactful tool for not just transforming townships, but also solving South Africa’s perennial unemployment challenges. However, the government, regulators, private sector and lawmakers must come to the party for this to be a reality.
FIND OUT MORE
Tshepo Marumele
Takealot partner drivers
KASINOMICS
How big business can intentionally integrate township products into their supply chains. By
THANDO PATO
Scaling up a small business and targeting mass consumer markets in the formal retail sector is the goal of many township-based businesses seeking new markets and consumers to buy their products. To do this successfully, businesses need to list their products with major retailers and businesses operating in competitive spaces.
BARRIERS TO ENTRY
According to Kgaugelo Tsoka, acting executive: township economy revitalisation at the Innovation Hub, the requirements for township small, medium and micro enterprise (SMME) owners, particularly those in the manufacturing sector, are steep and require capital, compliance and infrastructure.
Tsoka says some of the biggest barriers to entry for township entrepreneurs include:
• Manufacturing standards compliance, which can consist of of cial certi cation and approvals from municipalities and industry bodies (for buildings, manufacturing processes and packaging) and organisations such as the SABS (for example, food safety, labelling, and so forth).
• Limited nancial support for mass production capacity, quality control and packaging material.
Selaocoe says his business model is currently business-to-business, but he is eager to approach major supermarket retail chains to stock his product line.“
Currently, we can produce one thousand bottles of jam a week, so I am more than con dent that we have the capacity to meet the demands of a retailer. However, our biggest challenge now is that we have been waiting for a couple of months for two critical certi cations, which will verify that our factory meets the required manufacturing standards and our products and processes meet food, health and safety requirements. Without these, I don’t meet the basic procurement and requirements of major retailers,” he says.
Lufuno Rasoesoe is the managing director and founder of Tosh Detergents, a cleaning detergent range formulated with indigenous plants. The product is currently stocked at Pick n Pay, Checkers, Shoprite and a limited number of SPAR franchise stores.
• Inadequate logistics infrastructure.
• Negative perceptions about informal sector goods.
Gontse Selaocoe, founder of All Day Jam, runs a small factory in Orange Farm with eight employees. They process and produce a product line from locally sourced fresh produce.
Rasoesoe says she was rejected by Checkers and Shoprite for two years before being listed. “I was at a conference where a representative from Shoprite Checkers Enterprise Supplier Development programme was presenting, and I challenged them and shared my experience of trying to get listed with them. After that, they revisited the conversation with me, and the rest is history.” Rasoesoe says the listing process is onerous. “One of the biggest challenges of being a township-based manufacturer is that most of the buildings in the township are not compliant and may not meet retail requirements, which means there is a lot of red tape involved in getting certi cations and making sure you become compliant. However, compliance is key, and it gives you a leg to stand on.”
HOW BIG BUSINESS CAN HELP
Tsoka says big business can make the path less difficult for township SMMEs by:
• Providing training and support through supplier development programmes.
• Offering market access channels via temporary stores, digital marketplaces and retail guidance programmes.
• Assisting in product development and providing compliance guidance that adheres to retail standards.
• Allocating funds for common infrastructure such as co-packing, storage facilities and testing laboratories.
• Enabling long-term agreements or consignment arrangements that reduce risks associated with entering supply chains.
To make township supply integration more sustainable, Tsoka says:
“Corporates must also improve and increase the availability of compliance training and certification resources across townships to meet the demand. They also need to enhance funding for township-focused incubators and accelerators that collaborate with local value chains.
And, finally, support entrepreneurs with production and manufacturing facilities to eliminate the need for third-party manufacturing.”
From Sis’ Pinky, who keeps the township stocked with bread, milk and airtime from her spaza shop, to Bra Joe, who keeps your car moving with a quick x or a full engine overhaul, hustle culture isn’t just a buzzword in South Africa’s township economy; it is the backbone of the community. The township streets are a sleeping giant of untapped potential. However, beneath the grind lies a glaring vulnerability. Most of these microbusinesses are underinsured or not insured at all.
While looting and oods have made the headlines, township businesses face several risks that threaten sustainability. Fires from faulty electrical connections, load shedding damage to equipment and refrigerated stock, water damage from poor drainage infrastructure and theft. Additionally, business owners may face unpredictable health emergencies, supplier disruptions or public transport strikes that halt foot traf c. Without insurance cover, many businesses shut down permanently, setting back communities and families and wiping away years of hard work.
With the right tools and resources, microinsurance can unlock growth where it’s needed most, writes ZAMA KWEYAMA , head of operations at Santam Emerging Business MICROINSURANCE CAN PROTECT
Traders, artisans and service providers in the township do more than just business; they are the lifelines of the community. However, most operate without formal insurance because traditional insurance models do not meet their needs. High premiums, paperwork-heavy processes and rigid terms keep township entrepreneurs on the sidelines.
MICROINSURANCE TO THE RESCUE
Enter microinsurance. It is designed to be lean, exible and affordable for low-income markets. It covers speci c, limited risks such as theft, re, oods or illness. Microinsurance can be more than a “band-aid”; it can be an incubator. With access to cover, entrepreneurs can take calculated risks and expand operations, knowing they have a nancial safety net in case of a crisis. It’s not just risk mitigation; it’s economic development.
Insurance can empower township businesses to plan for the worst while working toward the best. When disaster strikes and a payout helps restock shelves or repair a roof, that’s a business that lives to ght another day. By making risk management accessible, we create an ecosystem where businesses and jobs are sustainable and money keeps owing within the community.
Naturally, microinsurance can only work if people understand it. The key challenge is addressing low insurance literacy. Many
township entrepreneurs are unaware that insurance options exist for them. Moreover, they often mistrust insurers due to past poor experiences or misunderstandings.
Insurers have the opportunity, and responsibility, to provide nancial education to this emerging market. Through partnerships with local organisations and community leaders, insurers can build trust and educate entrepreneurs on what insurance is, how it works and why it matters. Insuretech companies are uniquely placed to lead the charge.
With digital platforms, mobile apps and arti cial intelligence-powered assessment tools, they can lower operational costs and deliver tailored, affordable products directly to township consumers. Think WhatsApp claims, airtime-based premiums and biometric ID veri cation.
Product offerings can range from month-to-month cover to on-demand or event-based coverage, for example, weekend-only stock protection for market vendors or ood cover during high-risk seasons. Flexibility creates relevance, and relevance drives uptake.
TAILORED OFFERINGS FOR THE TOWNSHIP MARKET
To win the township market, insurers must design products for the realities of these consumers, not for the boardroom. That means products should be tailored to have low premiums and high transparency, simple language and multilingual communication, easy onboarding, fast claims and community buy-in.
Price is not the only barrier to insurance uptake in township communities; it’s also how people are expected to pay. Township entrepreneurs operate in a mostly cash-based informal economy where debit orders and credit/debit cards aren’t the norm. Insurers can bridge the gap by offering exible, familiar payment methods.
Insurance should not be a luxury item. For township economies, it’s a form of economic infrastructure. Microinsurance can protect dreams, sustain livelihoods and build risk-proof nancial ecosystems.
The township economy isn’t underperforming; it’s underprotected. With the right tools and resources, microinsurance can unlock growth where it’s needed most. Perhaps this time, the next ood or are-up won’t wash away progress but reveal how prepared we’ve become.
