Psssst! Brand Owners, Advertising Clients, Marketeers and Media Practitioners! Comes this side! Here's a plug from The Township Economy.

unseen, unheard, and unknown economies that have thrived in forgotten corners of the South African Informal Market.

It is only last year that the South African Township Informal Economy was pegged between a R150 - R180 billion by the World Bank. In a recent discussion with my knowledgeable Out-of-Home (OOH) industry peers Kirsty Carlson and Livia Brown of Beyond the Billboard , I suggested that we should amplify every commercial estimate concerning the township economy by threefold or even fourfold. I experienced a sense of professional joy and validation to be proven right by my peers when a new report revealed that the Township Informal Economy is valued at R750 billion, the report even taking insight from some of my recent presentations, don’t worry I don’t wish for credit. I further possess a comprehensive breakdown of my own updated and well researched perspective, a piece of intellectual property housed within Views from The Townships by Kabelo Kale. In shedding light on an often-overlooked perspective, it becomes evident that South Africa's focus on urban townships may be missing a crucial point - the regional dynamics of the Township Economy are where significant growth is emerging. Following the end of apartheid, a substantial portion of this growth stems from the unseen, unheard, and unknown economies that have thrived in forgotten corners.

The fall of apartheid caused fear among some who had benefited from its privileges, prompting them to flee the country and leave behind vacant residential and commercial spaces, which are now largely occupied by foreign nationals. Notably, areas like Yeoville, Berea, Hillbrow, Balfour Park, and Bramley in Johannesburg, amongst others in various metro CBD.s, have since transformed into vibrant informal economies, contributing at least a third to the recent R750 billion informal economic activities. These economies, existing outside the formal economy, have effectively become part of the Township Informal Economy and play a significant role in the marketing and branding efforts of numerous businesses interested in this market and economy.

While attention often gravitates towards well-known townships like Soweto, Tembisa, uMlazi, Gugulethu, and Mitchells Plain due to accessibility for research, the hidden informal economies in Yeoville, Hillbrow, Berea and its counterparts across the country contributes significantly to the total South African Informal Economy, amounting to R250 billion just by themselves. It is fascinating to note that despite being primarily run and shopped by foreign nationals, these markets exclusively deal in locally manufactured products and brands at their makeshift shops, also known as the spaza shop, a part of the township retail and significant portion of the entire South African Informal Economy.

"It is fascinating to note that despite being primarily run by foreign nationals, these markets exclusively deal in locally manufactured products and brands at their makeshift shops, also known as the spaza shop, a part of the township retail and significant portion of the entire South African Informal Economy"         

Generally featured products are Consumer Packaged Goods or Fast Moving Consumer Goods, suitable for an occasional pop-in or top-up purchase. As long as the Spaza Shop conveniently feeds these Shopper Behaviours, it will always be a significant part of the Township Economy, despite the growth of formal supermarkets and malls.        

Despite locally produced uncharacterised and unknown products at these unknown and unseen corners of the South African informal market, we continue to witness a wide-listing of products and brands from the likes of 可口可乐公司 Premier Foods 百事 FOODCORP LTD Pioneer Foods Clover S.A. Proprietary Limited 亿滋食品 联合利华 雀巢 Tiger Brands AVI Limited 达能 including betting, airtime, satelite tv, electricity payments et all from the likes of DStv Eskom Holdings SOC Ltd Supabets Gaming Group (PTY) Ltd Betfred Betfred South Africa and many others.

This highlights that the informal economy has its engine in the Spaza Shop, and with their focus  on CPG or FMCG, play a crucial role in the R750 billion Township Economy, by catering to the quick  and convenient purchasing habits of the shopper.        

This unseen and unknown informal ecosystem (in Yeoville, Hillbrow, Berea, Balfour Park, Bromley and others countrywide) not only includes the spaza shop, but also encompasses a variety of businesses such as pharmacies, hardware stores, bakeries, taverns, liquor stores, independent workshops, back-room rentals, barbershops, hair salons, funeral societies, and panel beaters, showcasing the resilience and entrepreneurship thriving within these hidden economies. Views from the townships by Kabelo is happy to give you instant physical access to this market including immediate traction and sales growth, a step your competitors will hail as unprecedented.

If the contents of this article meet your desired brand outcomes and objectives, or if you think you can benefit from this growth perspective, hit me up on the DM's, or drop me a mail on my universal mail [email protected] or just WhatsApp me at +27 (0) 71 069 6457 ... Sharpo Ge!

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