PODCAST | Unlocking the value and growth of SA’s township economy

The value and growth of SA’s township economy is the focus of this edition of Business Day Spotlight. Host Mudiwa Gavaza is joined by Bulelani Balabala, founder of the Township Entrepreneurs Alliance (TEA).

A Lesaka report estimates that the informal sector, made up in large part of the township economy, contributes more than R600bn to the country’s income, translating to more than 6% of GDP. 

Balabala says the actual figure is probably higher. His organisation posits the sector to be valued at more than R900bn.

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The businessperson says SA continues to have a troubled relationship with townships, often underestimating the value that it creates and brings. He advocates for greater support of entrepreneurs that takes into consideration the challenges that have to be overcome daily by the country’s small businesses. 

He points to alternative lenders, those seeking to offer credit to people who traditionally do not qualify for traditional bank loans as examples of what can be done to take the sector forward. 

Through the discussion, Balabala outlines the size and scope of the informal sector; the country’s relationship to townships; opportunities for small businesses; ways in which consumers and corporates can show support; and the place of alternative finance models. 

TEA is gearing up to hold a two-day summit and awards event centred on the township economy. 

Business Day Spotlight is a MultimediaLIVE Production. 

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