The value of the township economy is estimated at R1 trillion a year, but a new survey finds that nearly 80% of township businesses are unregistered, which excludes them from access to finance, formal markets and digital tools, that could enable them to grow.
According to Statistics South Africa (Stats SA), unregistered businesses are those that operate outside formal regulatory frameworks, including VAT registration, labour regulations, and tax compliance.
Stats SA finds that the informal township economy accounted for nearly 19.5% of total employment in the last quarter of 2024. For scale, South Africa’s nominal GDP in 2024 was R7.3trln.
A survey by Standard Bank conducted across Gauteng, KwaZulu-Natal, Western Cape, Limpopo and North-West, in townships that include Meadowlands, Cosmo City, Langa, Khayelitsha, Lebowakgomo, Phoenix, among others, showed that these…