One of the greatest misconceptions about the township economy is that its businesses are only meant to serve township communities. Somewhere along the way, we accepted that if a business was born in a township, it should remain there. We celebrated survival more than we celebrated scale. We measured success by longevity instead of growth.
But what if we’ve been asking the wrong question? Instead of asking, “How do we create more township businesses?” perhaps we should be asking, “How do we build township businesses that compete nationally, continentally, and globally?”
The township has never lacked entrepreneurs. It has lacked pathways to scale.
Every day, extraordinary businesses are born in our communities. Fashion brands are redefining African style. Food businesses are creating products people love. Furniture makers, manufacturers, beauty brands, technology start-ups, logistics companies, creative agencies and artisans are solving real problems and creating real value.
Yet too many of these businesses remain trapped within the geographic boundaries of the township. Not because they lack ambition, but because the ecosystems that support growth often stop at the township’s edge.
Scaling a business is about far more than increasing sales. It is about building systems, strengthening operations, embracing technology, accessing finance, protecting intellectual property, developing strong leadership and, most importantly, finding new markets.
The township should be a launchpad, not the finish line. Imagine a clothing brand that starts in Tembisa and supplies retailers across Southern Africa. Imagine a bakery in Khayelitsha whose products are stocked in supermarkets nationwide.
Imagine a furniture manufacturer in Soweto exporting proudly South African craftsmanship to the rest of the continent. Imagine township technology companies building software used by municipalities, banks and multinational corporations.
This is not wishful thinking. It is entirely possible. But scaling requires intentional support. The private sector must move beyond supplier development programmes that tick compliance boxes. Businesses need market access, procurement opportunities, mentorship, technology transfer and long-term commercial partnerships.
Government must continue creating an enabling environment through infrastructure, export readiness programmes, simplified regulations and procurement policies that intentionally include high-growth township enterprises. Financial institutions have a critical role to play by developing funding products that reward growth, not just survival. Capital should be available to entrepreneurs who are ready to expand production, enter new markets and create jobs.
Universities and innovation hubs should become partners in commercialisation, helping township businesses improve products, embrace digital technologies and compete in increasingly sophisticated markets. And entrepreneurs themselves must shift their mindset. Your postcode should never determine your potential. Being a township business should describe where your journey began, not where it ends.
South Africa’s economy cannot reach its full potential if millions of entrepreneurs are only encouraged to trade within the communities they call home. The formal economy and the township economy are not separate worlds; they are interdependent. When township businesses scale, they create stronger supply chains, generate sustainable employment, expand the country’s manufacturing base and contribute meaningfully to South Africa’s GDP. The future of the township economy will not be measured by how many businesses remain local. It will be measured by how many businesses become national champions.
How many become African brands.
How many become global exporters.
That is the opportunity before us.
Because when township businesses scale beyond local markets, they do more than grow revenue. They change the narrative. They prove that world-class businesses can emerge from places that were once overlooked. They inspire the next generation to dream bigger. And they remind us that greatness has never been confined by geography.
The township is where the story begins. It should never be where ambition ends.
