FNB, Selpal target townships
FirstRand’s First National Bank and a start-up financial technology company in South Africa are partnering up to connect informal traders in townships with fast-moving consumer-goods companies.
FNB is seeking to tap into a market it estimates could consist of as many as one million enterprises which have largely been ignored and fall into the “unseen economy”, it said in a statement.
FNB business chief executive Michael Vacy-Lyle said: “With 50% of South Africa’s urban population living in townships, the ecosystem supporting these communities warrants significantly greater focus from the banking sector.”
The bank estimates about 300 000 of these traders are “survivalist” in nature, employing three or more people and relying on cash payments.
The company has partnered with Selpal, which connects informal merchants ranging from bars and grocery stores to hairdressers and micro-manufacturers.
Selpal CEO Stephen Goldberg said the traders are provided with a point-of-sale device “that lets them view, order, pay for and sell stock and value-added services without needing to leave their shop, and unlocks extra revenue for them”.
He continued: “It changes the way customers buy from them, extending the benefits and value to the end consumer.
“Our partnership with FNB Business will help expand our network and supercharge our growth.”