Zuko Komisa

- 80% of South African township businesses are unregistered, locking this vital R1 trillion informal economy out of formal finance and growth tools.
- The Standard Bank report highlights this paradox, noting the informal sector accounts for one in five jobs despite being mostly unsupported.
- Standard Bank’s ESD Head, Naledzani Mosomane, stressed the need to move these enterprises from “survival to scale” through formalisation pathways.
A groundbreaking report by Standard Bank has exposed the vast untapped potential of South Africa’s township economy, revealing that nearly 80% of township businesses remain unregistered, effectively locking them out of formal finance and growth opportunities.
The bank’s first-ever Township Informal Economy Report highlights a paradox: this informal sector contributes a staggering R1 trillion in value and accounts for one in five jobs nationwide. Yet, its lack of formalisation keeps the majority of enterprises stuck in a survival mode.
Kaya Biz with Gugulethu Mfuphi spoke to Naledzani Mosomane, Head of Enterprise and Supplier Development (ESD) at Standard Bank, explained that the failure to register businesses prevents township entrepreneurs from accessing crucial benefits.
The report seeks to explore both the barriers, including lack of access to capital and formal business infrastructure, and the innovative ways these entrepreneurs are operating despite limited resources.
“Unregistered businesses are locked out of formal markets, financial services, and digital tools that could truly fuel their growth,” Mosomane stated.
Listen to the full conversation here:
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