South-Africa’s Vital Township Economy

Unlocking South Africa's Township Economy Potential

South Africa's township economy offers potential for economic revival, job creation, and poverty alleviation. With a combined spending power of R290 billion, addressing challenges like limited funding, infrastructure, and crime is crucial. Government initiatives, like TREP and Gauteng Township Economy Revitalisation Strategy, aim to improve conditions. Township businesses include retail, rentals, transport, and services. Informal enterprises contribute 6% to GDP, and median income is lower than in the formal sector. By addressing challenges and promoting partnerships, South Africa's township economy can drive social and economic progress for all citizen

Key Takeaways:

The list of businesses within the township economy:

• Retail dominates with Spaza shops, shebeens, fast food outlets,bakeries and hawkers
• Backroom Rental
• Minibus Taxi Operators
• Mechanics Panel Beaters
• Metal Fabricators
• Childcare services
• Barbers & Hairsalons

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Key Figures

Informal enterprises contribute an estimated 6% to GDP.

• the median income of workers in the informal sector is about R2,000 per month, compared to R4,300 in the formal sector.
• Self-employed workers, particularly men, earned more – R6,700 per month, on average.

The township economy has the potential to support job creation and economic growth alongside South Africa's formal business sector.

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