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Image courtesy of Town View
I experienced a professional euphoria and a sense of validation from my peers when a new report revealed that the township informal economy is worth R750 billion, the report even cited insights from some of my recent speeches, don’t worry, I don’t want credit. I also produced a comprehensive analysis of my own latest, well-researched insights, an intellectual property in The Township Perspective, written by Kabelo Kale. In illustrating an often overlooked point, it became clear that South Africa’s focus on urban townships may be missing a key point – the regional dynamics of the township economy is where significant growth has occurred. Much of this growth has come from the unseen, unheard and untold economies that have flourished in forgotten corners since the end of apartheid.
This photograph, taken in the suburbs of Yeoville/Berea, South Africa, courtesy of Township Views by Cabello Kell, effectively illustrates the unseen, unheard and unknown economy that thrives in the forgotten corners of South Africa’s informal markets.
The collapse of apartheid has instilled fear in some of those who benefited from the apartheid system, prompting them to flee the country, leaving behind vacant residential and commercial spaces that are now mostly occupied by foreigners. Significantly, areas such as Yeoville, Berea, Hillbrow, Balfour Park and Bramley in Johannesburg and various metropolitan central areas have transformed into vibrant informal economies, contributing at least one-third of the recent R750 billion in informal economic activity. These economies that exist outside the formal economy have effectively become part of the township informal economy and play an important role in the marketing and branding of many businesses interested in this market and economy.
This photo, taken in the suburb of Yeoville, South Africa, shows the prime locations of numerous convenience stores dotted along one of the many streets in Yeoville and many other similar suburbs that are unknown to brand owners and media practitioners.
While research attention tends to focus on well-known townships such as Soweto, Tembisa, Umlazi, Gugulethu and Mitchells Plains, the hidden informal economy in Yeoville, Hillbrow, Berea and similar townships across the country contributes significantly to South Africa’s total informal economy, which is worth R250 billion in these townships alone. It is worth noting that while these markets are mainly run and shopped by foreigners, their makeshift shops (also known as spaza shops) specialize in locally made products and brands and are part of the township’s retail sector and an important part of South Africa’s informal economy as a whole.
This image, courtesy of Kabelo Kale’s Township View, effectively depicts what services are typically available within a two-minute walk from your residence to a grocery store, including airtime, betting, and branded merchandise.
“It is important to note that while these markets are predominantly run by foreigners, their makeshift shops (also known as spaza shops) specialise in locally made products and brands and are part of the township retail sector and an important part of South Africa’s informal economy as a whole.”
The unknown and unseen spaza basket worth R250 billion, this image was taken from an immersive location, courtesy of Kabelo Kale’s “View from the Township”.
The unknown and unseen spaza basket worth R250 billion, this image was taken from an immersive location, courtesy of Kabelo Kale’s “View from the Township”.
The unknown and unseen spaza basket worth R250 billion, this image was taken from an immersive location, courtesy of Kabelo Kale’s “View from the Township”.
“Generally speaking, specialty products are consumer packaged goods or fast-moving consumer goods, suitable for occasional visits or replenishment purchases. As long as convenience stores can conveniently meet the behavior of these shoppers, they will continue to be an important part of the township economy despite the growth of formal supermarkets and malls.”
Image of spaza shop in Yeovil CBD filled with a variety of single knock-out units from different manufacturers and local brands, courtesy of ‘Township Views’ by Kabelo Kale.
Despite the presence of locally produced unknown and lesser-known products in these lesser-known corners of South Africa’s informal markets, we still saw an extensive list of brands and products from: The Coca-Cola Company, Quality Food, Pepsi, Food Company Ltd., Pioneer Foods, Shamrock Co., Ltd., Mondelēz International, Unilever, Nestle, Tiger, AVI Co., Ltd., Danoneincluding gaming, airtime, satellite TV and electricity bills, etc. television, South Africa’s State Electricity Holding Company, Supabets Gaming Group (Pte) Ltd, Betfred, Betfred South Africaand many others.
“This highlights that the engine of the informal economy is the spaza shop, which specialises in fast-moving consumer goods or FMCGs and plays a vital role in the R750-billion township economy by satisfying shoppers’ habit of quick and convenient purchases.”
This invisible, untold informal ecosystem (in Yeovil, Hillbrow, Berea, Balfour Park, Bromley and elsewhere across the country) includes not just small shops but a wide variety of businesses such as pharmacies, hardware stores, bakeries, pubs, bottle shops, independent studios, back rooms for rent, barbers, hair salons, funeral societies and sheet metal workers, demonstrating the resilience and entrepreneurial spirit that thrives in these hidden economies. Kabelo’s Small Town Horizons is happy to give you instant access to this market, including immediate attention and sales growth that your competitors will praise as an unprecedented move.
If the content of this article aligns with your desired brand outcomes and goals, or you think you could benefit from this growth perspective, please reach out to me via DM or send me an email via my general email moc.liamg@oranbak Or contact me directly via WhatsApp +27 (0) 71 069 6457…Sharpo Ge!
#ViewsFromTheTownships #TownshipEconomy @Branding #OOH #DOOH #Marketing #SpazaShop #WallMurals #KabeloKale
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