From poverty to prosperity: The hustle behind SA’s thriving township economy
A palpable energy courses through South Africa's townships, from Khayelitsha in Cape Town to Soweto in Gauteng. Often arising from hardship, it’s become a hustling spirit, fuelled by grit, resilience, creativity, and unwavering determination. In these communities, residents deprived of resources such as tertiary education, skills training, job opportunities and capital have had to turn to their own resourcefulness and ingenuity to survive. The result? Places like Soweto, the country’s largest township, have emerged as a hub of enterprise, and the township economy has been valued at around R900 billion, with an estimated contribution of 5.2% to South Africa’s GDP, according to Roger Wilco’s 2022 Township CX Report.
“A lot of people can relate with the hustle of having to grow up in South Africa,” observes Thabiso Mokomele, fashion designer and founder of TSquared. According to Luvuyo Rani, social entrepreneur and founder of Silulo Ulutho Technologies, 60% of youth in Khayelitsha, South Africa’s second largest township, is unemployed. “I see so much unemployment, poverty in the area of Khayelitsha,” he says, “but I also see an abundance of opportunity.” Nomalungelo Sotyingwe is one of those residents who knows how to turn joblessness into joy. After losing both her job and her husband while pregnant with her third child, she refused to succumb to despair and opened her own guesthouse from her home, which has become a renowned tourist destination for visitors to Cape Town. “Lungi’s BnB – it gave the community something to be proud of,” she says.
And make no mistake, a sense of pride underpins the efforts of local entrepreneurs as they focus on the possibilities rather than the obstacles in their path to achieving their dreams. Growing up without shoes, Lekau Sehoana turned to transforming an old, torn sneaker into fancy footwear. Today, the owner of the hugely successful Drip Footwear and Drip Sportif is tapping into people’s aspirations rather than just basic needs with his trendy sneaker line. For Sikelele Dibela, who went from washing dishes in a coffee shop to opening Siki’s Koffee Kafe out of his mother’s garage, it’s all about using your resources, no matter how humble, to offer aspiring entrepreneurs the room to develop. “My coffee shop gives young people a place to meet, work, and grow,” he says. “If I can kickstart my dreams like this, anyone can.” Thusile Celesi, chef and owner of Ekasi Village House, is also on a mission to uplift others. “I want to give back to the community to train more people to become like the ‘Cake King of Khayelitsha’,” he says, referencing the nickname he’s earned from his baking skills.
While the majority of businesses, both formal and informal such as the roadside vetkoek sellers, deal in products and handmade goods, many others are thinking outside the box to provide services. When Leon Qwabe had a craving for traditional food after a big night out and struggled to order to his home, even though services such as UberEats are prevalent in urban areas, he knew he had a business on his hands. “Other delivery services won't operate in the townships due to challenges of mapping, crime, and knowledge of the township,” he says. “I saw an opportunity to make a difference within these communities,” says the app developer and founder of Order Kasi, which is benefitting drivers, restaurants, and foodies in the township. Similarly, Sizwe Nzima started off in deliveries. “My grandparents struggled to get their chronic medication because of the long queues they had to sit in at the clinic as well as the hours they had to travel. I realised that there were many more like them,” he says. What began as a solo endeavour to deliver medication directly to people’s homes by bicycle grew into a network of drivers doing door-to-door missions, ultimately leading to the establishment of Iyeza Health.
Underlying all of these stories is the importance of not just being a township resident who makes it as an entrepreneur, but also doing it within their hyperlocal communities. For people living in townships which are often situated far outside city centres as a result of South Africa’s spatial planning during apartheid, simply securing a job does not mean an end to financial difficulties. Having to wake up at the crack of dawn to begin the commute to work, often dependent on unreliable and costly public transport, can put residents at a further disadvantage. Creating businesses within the township alleviates this challenge, and also enables money that is made within the township to go back into hiring and empowering people within the township. “Entrepreneurship is the only solution that can actually move the society forward,” Siyabulela Sophi says. Sophi is the founder of clothing brand MK Originals, and has hosted numerous pop-up events in Khayelitsha to support local businesses. For him, it’s imperative to operate close to home. “I want to inspire young people by ensuring that I run a successful business within their community because there was an opportunity for me to go and run this business in the CBD which would be easier, but whenever they have a question to ask me, it’s easy, I’m accessible,” he explains.
From fashion and food to health and technology, these are just some of the thousands of enterprising individuals that are shaping South Africa’s economy while inspiring others to believe in their capabilities and join them in doing so. “We are brilliant in coming up with solutions. We have got what it takes, it’s in our DNA as a South African,” Rani says. “We are a country full of possibilities.” And indeed, these entrepreneurs and the thousands more that are thriving among them are proof of what people are capable of achieving, and not just for themselves. “Where there is a need, South Africans will always make a plan to help one another,” Nzima says. Together, they’re sharing in both the commitment and the rewards. “Success is meaningless if I’m going to be the only person successful within my community,” Sophi says. “Success makes sense when we move forward as a collective.”
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