Township economy in 2023: how people earn and spend their money

An increase in the number of kasi-based delivery services and a decrease in the age of stokvel participants: these are among the ups and downs of township life that reveal a thriving economy.

The latest Rogerwilco Township CX Report, developed with Survey54, polled more than 1,000 township residents across SA to understand where and how they spend their money. The third annual Township CX Report offers insights and highlights changes and trends that provide invaluable marketing evidence for brands.

The 2023 research builds on the insights from 2021 and 2022 to offer a better understanding of how markets operate in the township. It examines what brands bring to the kasi and gives an indicator of where they are going, as township-based businesses draw on their resilience to deal with the challenges of load-shedding and other economic woes. 

With rising unemployment and food price inflation at 13.4%, the role of spaza shops is more important than ever in the lives of township residents. Compared to 2022, there has been a 15% increase in the number of respondents who shop at spazas, with 51% of respondents shopping at spazas on a daily basis.

Twenty percent of respondents said they spend between a quarter and a half of their income in townships.

Another interesting development is that respondents spent more than R3,000 in the last year on home-grown fashion — a significant amount in a demographic that is highly brand conscious. 

Deeper insights about life in the townships are also available in this report, providing additional value by including actionable outcomes for marketing success in the kasi market.

For more information about how township residents earn money, where they spend it, what trends are developing and where this leaves branding and advertising, register for the online report launch on June 7 2023, where a panel of experts will discuss the report. Marketers, advertisers and brand managers can register at no cost. 

This article was sponsored by Rogerwilco.