Township Brands

South Africa's township economy, a vital component of the country’s informal sector, has become a high-stakes battleground for major retail players in 2025, with major grocery retailers Shoprite and Boxer leading the charge. With Boxer’s recent listing on the JSE and aggressive expansion plans, 2025 promises a fierce competition between these two giants for dominance in the rapidly growing township market. In 2024, Usave sales shot up by 13.2%, making it Shoprite’s fastest-growing brand. The group’s acquisition of Massmart’s Cambridge Foods shops in 2021 has further bolstered its position in the township market, as many of these outlets were converted into Usave and other formats. Boxer, owned by Pick n Pay, is also targeting the township economy with an ambitious plan to open more than 500 new shops over the next seven years. Boxer now operates 500 shops nationwide, including 308 Superstores, 162 Liquor Stores, and 30 Build Stores. Uber | The South African Breweries| The Shoprite Group of Companies| Pick n Pay | Unilever| Coca-Cola Beverages Africa |SPAR South Africa | Trade Intelligence | Massmart | #TownshipEconomy https://lnkd.in/d9xzgQF2

With around 8% of the population still unbanked in South Africa, the township economy and related services is still predominantly driven by cash. Merchants operating in townships and rural areas remain underserved by the mainstream financial services sector. This has driven a vibrant development opportunity within the Fintech sector with companies looking to address their pain points with innovative solutions that help them to, in turn, serve their customers more efficiently and effectively. According to Lincoln Mali, CEO of Lesaka Technologies, who was speaking at the Township Economy Summit 2024, hosted by the Township Entrepreneurs Alliance (TEA). “South Africa’s merchant market remains underpenetrated, with huge addressable opportunities,” he says. Lesaka Technologies Inc. | Kazang https://lnkd.in/dK35fnr2

Tiger Brands partners with Kota Festival Tour to boost township economies Tiger Brands’ premium bread brand, Albany, has announced an exciting commitment as the title sponsor of the Kota Festival Tour, aimed at uplifting South Africa’s informal sector over the next three years. This innovative initiative shines a spotlight on one of the country’s cherished street foods, the kota — promising to create over 2 000 job opportunities and invigorate the township economy. The inaugural edition of the Kota Festival Tour, launched in Gauteng in 2023, celebrates the growing popularity of the kota, a delicious local delicacy that encapsulates the essence of South African street cuisine. Moving forward with the brand as its title sponsor, the festival is set to expand nationwide, fostering a climate of entrepreneurship and community spirit in towns across the nation. Tiger Brands | #Kota | #Gauteng | #Albany | #Festival | #Entrepreneurship https://lnkd.in/dYDvUpC5

The recent deaths of children from consuming unsafe food sold in unregulated spaza shops has shocked us all, creating outrage and emphasising the need for change in the informal food retail sector. These heartbreaking events demand immediate action and President Cyril Ramaphosa’s decisive mandate to register all spaza shops within 21 working days is a critical step toward ensuring consumer safety and fostering a vibrant, inclusive economy. This is a wake-up call that we must all heed. The economic significance of spaza shops South Africa is home to about 100 000 spaza shops, with a significant portion operating informally. Many operate outside regulatory frameworks, contributing to health risks, counterfeit food distribution and unfair competition. Recent investigations by the department of small business development highlighted the circulation of counterfeit and unsafe food products. Compounding the issue, many of these shops are run by undocumented foreign nationals, which adds layers of complexity to enforcement and compliance. Cyril Ramaphosa | Parliament of the Republic of South Africa| #SpazaShops | #SmallBusinessDevelopment | #Food | #TownshipEconomy | #Economy https://lnkd.in/dS4fZg8e

R500 million payday for rural and township businesses The government has unveiled a R500 million fund to support businesses in rural and township areas, recognizing the sector’s food security challenges. The fund has outlined the criteria these businesses must meet to qualify. Acting DDG at the Department of Trade and Industry, Susan Mangole explained on Newzroom Afrika that this fund is a collaborative effort involving the Department of Trade, Industry, and Competition and the Department of Small Business Development. While the Small Business Development department contributed as much as its budget allowed, the Department of Trade and Industry stepped in to enhance the funding to R500 million. Mangole said the fund aims to address two primary goals. In the first place, it aims to help small enterprises, including spaza shops, provide affordable food to their communities. The initiative also seeks to support these shops in refurbishing their premises, adhering to food hygiene standards, and complying with laws and regulations. Additionally, the fund will focus on creating wholesale aggregation opportunities, enabling these businesses to access products at lower prices and enhance their competitiveness. the dti (Department of Trade and Industry: Republic of South Africa) | The Competition Commission South Africa | CIPC - Companies and Intellectual Property Commission (a member of the dtic Group) | https://lnkd.in/dWMGkrtt

Standard Bank is empowering township entrepreneurs with practical training to combat high SME failure rates. Through expert-led sessions, networking opportunities, and tailored tools, the initiative equips business owners with skills, market access, and funding guidance. Launched in key provinces, the programme aims to foster sustainable business growth, with plans to expand nationwide in 2025. "Standard Bank aims to reverse the trend that sees a staggeringly high number of small businesses failing within their first five years," says Cliff Mayinga, Provincial Head: Coverage for Business Banking (Western Cape), at Standard Bank Business and Commercial Banking. Nationwide training rollout The programme was recently launched in Gauteng in Soweto on Monday, 18 November 2024 and moved to KwaZulu-Natal in Umlazi on 25 November, and in the Western Cape on 28 November in Khayelitsha, and will expand into the rest of the country in 2025 Standard Bank South Africa | Standard Bank Group https://lnkd.in/dSjTEFEp

We are beyond excited to announce the opening of our very first international store in Maerua Mall, Windhoek, Namibia. This marks a groundbreaking milestone for Bathu as we take the next step in our journey of growth and innovation by expanding beyond South African borders. Here, Bathu consumers will have access to a curated selection of our iconic sneakers, including favourites like the Khalanga, Ndofaya, and Journey 2.0, as well as our latest collections that celebrate African innovation and craftsmanship. Bathu Group (Pty) Ltd https://lnkd.in/d3QjzHvM

City of Ekurhuleni, South Africa – The Township Entrepreneurs Alliance (TEA) proudly unveiled the winners of the 2024 Township Economy Awards at an extraordinary gathering celebrating innovation, resilience, and the relentless spirit of township entrepreneurs. The awards recognised game-changers making an impact in their communities while contributing to South Africa’s economic development. Awards Overview: The Township Economy Awards 2024 celebrated businesses and individuals excelling in areas such as innovation, entrepreneurship, and social impact. This event highlighted the critical role of the township economy in driving inclusive growth and fostering sustainable development. Awards Highlights: The gathering featured a compelling lineup of speakers who brought fresh perspectives and valuable insights: Township Entrepreneurs Alliance - TEA | Nedbank | Department of Small Business Development (DSBD) | City of Ekurhuleni | Joe Public | Five Star Fire | ANDURA Hardware | Borotho Bakery Enterprise Pty Ltd | The Blend Wellness | KEYMORE GROUP | Delivery Ka Speed SA | https://lnkd.in/dcF6f_9h

KASI entrepreneurs scoop top honours in style. In a powerful tribute to township innovation, local entrepreneurs were honoured on Saturday, 23 November, at the celebrated Township Entrepreneurs Alliance (TEA) awards held at Living Waters Bible Church, Kopanong section in Tembisa, Ekurhuleni. The awards spotlight the vibrant township economy and celebrate those making a significant impact. Khwezi Mthembu from Mpumalanga, founder of Definitive Brand Culture (Pty) Ltd, expressed his excitement upon winning the Entrepreneur with Disability Award. Township Entrepreneurs Alliance - TEA | City of Ekurhuleni | DEFINITIVE BRAND CULTURE | Agrishelves Marketplace | Department of Small Business Development (DSBD) | https://lnkd.in/dNw9Jsqd

South Africa’s township consumers value trust, authenticity, and collaboration as key drivers in their buying decisions. That’s according to the 2024 Township Customer Experience (CX) Report, released by Rogerwilco, in partnership with Field & Insights Africa. Now in its fourth year, the report surveyed over 1,600 township residents across the country’s nine provinces, offering vital insights into consumer behaviour, brand perception, e-commerce trends, and the importance of trust in shaping brand relationships. Mongezi Mtati, senior brand strategist at Rogerwilco, notes, “This year’s Township CX Report underscores that trust is the currency of the township economy. Brands that invest in genuine relationships, address real community challenges, and embrace the cultural significance of township life will stand out in this evolving market.” The findings reveal that township consumers remain deeply connected to sources of trust and familiarity, with word of mouth and television tied as the most influential platforms for brand discovery, each cited by 28% of respondents. Social media follows closely at 27%, reflecting its growing significance as a trusted medium for engaging with township consumers. Rogerwilco, Digital Marketing Agency | Field and Insights Africa https://lnkd.in/dhC8_iQ3