South Africa’s township economy is increasingly being recognised not as a problem to be fixed, but as a powerful engine of inclusive growth — provided it is supported with long-term commitment, strong relationships and intentional design.
That was the central message delivered by township economy expert Sifiso Moyo, who delivered the keynote address at the launch of small business development specialist Edge Growth’s 2025 Impact Report.
“For too long, the township economy has been framed in two conflicting ways: either as a problem to be solved, or as a R900 billion opportunity to be exploited,” Moyo said. “What we are now seeing is that through intentional design, blended capital and deep ecosystem leverage, that value can be unlocked in ways that create real, measurable impact.”
The township economy in South Africa is estimated to generate R900 billion annually, serving more than 21 million consumers across over 530 townships. According to Moyo, the shift now underway is moving the sector beyond rhetoric and into data-backed, people-centred growth.
Data and dignity driving impact
Edge Growth’s 2025 Impact Report highlights how a combination of robust data and lived experience demonstrates tangible outcomes for entrepreneurs, families and communities over the past year. The organisation has formally elevated township economies as a strategic area of measurement and investment within its ecosystem.
To deepen this impact, Edge Growth is focusing on three core pillars: sustainability, youth development and township economies — with a specific emphasis on strengthening small and medium enterprises operating in informal and township markets.
“South Africa’s township economy is one of our greatest engines of inclusive growth, and the data now proves it,” said Dan Hatfield, CEO of Edge Growth. “With 87% of the SMEs we support being black-owned, and a growing proportion operating in township and informal markets, we are seeing how access to catalytic capital, skills and market linkages can transform local economies from the ground up.”
Beyond funding: fixing the system
Moyo stressed that the main barriers facing township businesses are rarely just financial. Instead, they are often locked out by fragmented value chains, weak systems, and limited access to mentorship and structured support.
“For township enterprises to scale sustainably, they need more than capital,” he said. “They need access to supply chains, training, mentorship and consistent business support. Growth happens when funding is combined with systems that work.”
He highlighted the importance of policy and funding frameworks such as the Township Economic Development Act, the Spaza Shop Support Fund, the Township and Rural Entrepreneurship Programme (TREP) run by SEDA, and the Township Economy Partnership Fund supported by the Gauteng Enterprise Propeller and the Industrial Development Corporation. These initiatives aim to enable business formalisation, growth and long-term investment in township markets.
Proof that targeted support works
Edge Growth’s report provides concrete examples of how targeted funding and ecosystem support are translating into real-world outcomes.
Photsanang Pharmacy is bridging a 15-kilometre healthcare access gap for more than 20 000 people through blended finance and franchise partnerships. In KwaZulu-Natal, DILEX Purification has established a hazardous waste recycling facility that supports over 200 jobs and supplies electricity to more than 1 000 households. Tolokazi® Craft Beer has raised over R3 million from the Mining Investment Corporation, enabling expansion into the Netherlands, the UK and the United States, while creating township-based micro-distributors.
Programmes such as the Abadali Fund and the Ignite Fund, both managed by Edge Growth, are highlighted as examples of initiatives that go beyond financing by offering mentorship, business development support and access to markets — critical ingredients for sustainable growth.
Impact is a relationship
“Our 2025 Impact Report shows that when township-based SMEs receive the right support, they create jobs, grow revenue and build resilient local economies,” Hatfield said. “This is impact by design — using data with soul to ensure every intervention strengthens the people, businesses and ecosystems that keep our townships vibrant.”
For Moyo, the conclusion is clear. “Supporting SMEs in townships is not a once-off intervention. It is a long-term commitment. Impact is not an event — it is a relationship. And at the heart of that relationship are township entrepreneurs.”
As South Africa continues to grapple with unemployment and inequality, the evidence is mounting that sustained, relationship-driven investment in township economies is not only possible — it is already working.
