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Townships are what I call an economic cyclone – here’s why:
Townships aren’t just residential areas; they are high-density economic hubs with billions in untapped potential. The population is growing—and will continue to grow—creating massive demand for everyday essentials like:
- FMCG (Fast-Moving Consumer Goods) – nappies, bread, electricity, airtime, clothing
- Entertainment & lifestyle products – music, streaming services, fashion, alcohol
- Essential services – transport, finance, mobile banking, healthcare
Corporate South Africa has been making billions in townships for decades. Now, it’s time for young Black entrepreneurs to claim their share.
Did you know?
- Soweto: R34 billion annual retail consumption (2.2 million people)
- Tembisa: R20.4 billion
- Soshanguve: R19 billion
(Source: Fraym analysis, 2019)
Why Billions Are Made (and Will Continue to Be Made) in Townships
1. High Population Density = More Customers
- Townships have more people per km² than cities and suburbs.
- Example: Johannesburg is 134-78 km² larger than Soweto, but Soweto has 3,497-53 more people per km² than Johannesburg.
- This trend repeats across South Africa:
- Tembisa vs. Kempton Park
- Soshanguve vs. Pretoria
- Thembalethu vs. George
- Sharpeville vs. Vereeniging
- Mahwelereng vs. Mokopane
- Umlazi vs. Durban
2. Cheaper and More Effective Marketing
- You can reach thousands within a small radius at a lower cost.
- Flyer distribution, wall branding, and word-of-mouth marketing are more effective in high-density areas.
- Even social media ads are cheaper—starting at just R10/day on Facebook or Instagram.
3. Lower Operating Costs
- Cheaper rent & municipal rates than urban areas.
- More affordable business premises = lower overheads & higher profit margins.
- Townships attract workers, students, and job seekers from rural areas, meaning constant foot traffic and steady demand.