The Township Economy Report

The Township Economy is a R900 billion market that represents nearly a third of South Africa’s population and plays a vital role in shaping the country’s social and economic fabric.

Far from being marginal spaces, townships are hubs of innovation, entrepreneurship, and resilience. From spaza shops and fast-food outlets to digital adoption, tourism, housing, transport, finance, healthcare, and education, townships mirror the formal economy while adapting business models to the realities of their communities.

Yet, despite this dynamism, structural barriers — including weak infrastructure, spatial legacies, limited finance, and competition from large corporations — continue to constrain growth. This article provides a snapshot of township economic activity, highlighting both the scale of opportunity and the challenges that need to be addressed. It argues that unlocking the full potential of township enterprises will not only strengthen local livelihoods but also drive inclusive national growth.