Views from the Townships by Kabelo

Image courtesy of Views from the Township

I experienced a sense of professional joy and validation in being proven right by my peers when a new report revealed that the township informal economy is valued at R750bn, with 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.

This image taken in the suburb of Yeoville/Berea, South Africa, courtesy of Views from The Townships by Kabelo Kale, effectively shows unseen, unheard, and unknown economies that have thrived in forgotten corners of the South African informal market.

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 CBDs, have since transformed into vibrant informal economies, contributing at least a third to the recent R750bn 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.

This image, taken in the suburb of Yeoville, South Africa, showcases a golden mile of multiple spaza shops in just one of many streets in Yeoville and many other similar suburbs that are unknown and unseen by brand owners and media practitioners.

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 R250bn 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.

This image, courtesy of Views from The Townships by Kabelo Kale, effectively depicts what is generally available within a two-minute walking distance between your place of residence and the spaza shop, from airtime to betting and branded substance.

"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."

The unknown and unseen R250bn spaza basket, this image taken from a site immersion and courtesy of View from The Townships by Kabelo Kale.

The unknown and unseen R250bn spaza basket, this image taken from a site immersion and courtesy of View from The Townships by Kabelo Kale.

The unknown and unseen R250bn spaza basket, this image taken from a site immersion and courtesy of View from The Townships by Kabelo Kale.

“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.”

The spaza shop image filled with various single knockout units from various manufactures and local brands, in the Yeoville CBD, courtesy of Views from the Townships by Kabelo Kale.

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 The Coca-Cola Company, Premier Foods, PepsiCo, Foodcorp LTD, Pioneer Foods, Clover S.A. Proprietary Limited, Mondelēz International, Unilever, Nestlé, Tiger Brands, AVI Limited, Danone, including betting, airtime, satellite tv, and electricity payments 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 R750bn 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 DMs, or drop me a mail on my universal mail moc.liamg@oranbak or just WhatsApp me at +27 (0) 71 069 6457 ... Sharpo Ge!

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