Daily Dispatch

Fashion, food and fun — townships are booming

- GILL GIFFORD

Township 2022 Cx Report sheds light on a vibrant kasi economy where people are hustling and cash is king

The idea that SA’S townships are desperate slums full of unemployed people is a huge misconcept­ion, and a burgeoning kasi economy is quietly on the rise.

The 2022 annual Township CX Report carried out by digital agency Rogerwilco, in partnershi­p with consumer intelligen­ce platform Survey54, sheds light on a vibrant, culture-rich market that is thriving — representi­ng hundreds of billions of rand in spending power.

The report paints a picture of informal communitie­s that are an eclectic mix of mansions, shacks, spaza shops, rocking taverns, hawkers, taxis and hot wheels. The consumers generally spend within their communitie­s, use food delivery services such as Delivery Ka Speed and Order Kasi that deliver exclusivel­y from township restaurant­s. They prefer local brands over global names and their recorded use of online buying platform Takealot is higher than the national average.

Based on surveys carried out on more than 1,400 respondent­s from townships across the country — mostly Alexandra, Katlehong and Soweto in Gauteng, as well as Khayelitsh­a, Gugulethu, Langa, Masiphumel­ele, Delft and Elsies River in the Cape — the report uncovers a predominan­tly cashbased world that remains largely untapped and misunderst­ood.

Figures detailed in the report show that while 56% of the respondent­s said they were unemployed, 56% reported a monthly income of more than R4,000.

“It’s exactly what I have been saying for years,” said writer, entreprene­ur and strategist GG Alcock of Kasinomics, a freelance business specialisi­ng in the informal mass market. He agrees with the new report, particular­ly as it “recanted some of last year’s findings, like the belief that spazas will die”.

The township economy, he predicts, is “the next great frontier of Africa and it is undergoing a revolution — a new world of small people doing big things and transformi­ng the continent”.

Alcock says while many township residents say they are unemployed, this does not mean they have no income. There is a booming backroom sector (people renting out rooms on their property), spaza shops are evolving into spazarette­s, and stokvels are becoming increasing­ly sophistica­ted. And most people have a hustle of some kind. These are among the observatio­ns Alcock has made through his township dealings.

“People are ditching retail chains for spazarette­s that have evolved from small hole-in-the-wall outlets into mini supermarke­ts that give customers what they want. They offer credit on mampara week when the month is longer than your money.

They are mostly foreignown­ed, but they offer branded products and sell items such as nappies and toilet rolls one at a time,” Alcock said.

Hair and nail salons (“because the lipstick factor goes through the roof when people are struggling”), shebeens, street food outlets, bakeries, fruit and vegetable vendors, mechanics and taxi operators are among the mushroomin­g businesses servicing the needs of township communitie­s.

Among the success stories he has encountere­d is that of Mbali and Isaac Khubeka, who started their food business with R700 and now run three “Chicken Dust” stands and a kota shop. They buy more than 1,000 chickens and 700kg of potatoes a week.

Moipone Mahlakwane started a small vetkoek business with her mother after they moved to Joburg from Limpopo and needed to make a living. The business grew quickly to a point where, at the age of 24, she sells about 6,000 units per day at R1 each and employs four helpers.

Entreprene­ur Rhulani Shibambo, who started out working in his parents’ kota shop, received corporate sponsorshi­p that enabled him to train at the internatio­nal hotel school. Armed with new knowledge, he reinvented the family business as Kota King — now a profession­ally branded chain with four outlets, big visual menus and a growing clientele.

“Somehow SA has shaped a township dialogue around some sob stories that wrongly represent the majority. That’s the real tragedy. You cannot take tales of hardship and extrapolat­e it on to most of the population.

“It’s depressed doomsday scrolling, mostly by well-off whites. The fact is that townships are places of aspiration and pride. It’s a big and positive story,” said Alcock.

 ?? ALCOCK, KASINOMICS Pictures: GG ?? STREET TRADING: The latest Township Cx Report sheds light on a growing informal economy where business is booming.
ALCOCK, KASINOMICS Pictures: GG STREET TRADING: The latest Township Cx Report sheds light on a growing informal economy where business is booming.
 ?? ?? MOBILE VEGETABLE STALL: A vegetable vendor takes his produce to his customers who have become reliant on the service since lockdown created a need for it.
MOBILE VEGETABLE STALL: A vegetable vendor takes his produce to his customers who have become reliant on the service since lockdown created a need for it.

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