The next phase of the township economy will be about getting connected. It will be about what entrepreneurs can do with that connection.
In our first story, “The Township Is Ready for Its Next Operating System,” we argued that the township economy is entering a new digital chapter.
The question now is no longer whether technology will reach the township.
It is already there.
The bigger question is: How quickly will township businesses turn digital access into real business advantage?
Across South Africa, small businesses are increasingly using digital payments, online platforms, social media, e-commerce and cloud-based tools to operate and reach customers. Mastercard’s 2026 SME Confidence Index, for example, found that 80% of surveyed South African SMEs accepted online payments, while 55% identified the growing application of artificial intelligence and machine learning as a positive influence on their businesses.
But the township economy presents a more complex picture. Digital adoption does not automatically mean digital transformation.
A business may have WhatsApp, a smartphone and a digital payment facility, yet still operate its stock management, marketing, bookkeeping, customer records and business planning manually.
This is where AI enters the conversation.
AI IS NOT JUST FOR BIG BUSINESS
For many township entrepreneurs, Artificial Intelligence can sound like something designed for large corporations, technology companies and highly technical professionals.
But increasingly, AI is becoming a practical business tool. A small clothing business could use AI to develop marketing campaigns, write product descriptions and analyse customer trends. A food business could use it to plan menus, calculate costs, develop promotional content and manage customer communication.
A construction entrepreneur could use digital tools to prepare quotations, organise projects and respond to tenders. A spaza shop or local retailer could combine digital payments, inventory systems and data to understand what customers are buying and when.
A young creative can use AI to develop concepts, edit content, create presentations, translate material and reach customers beyond their immediate community. The opportunity is therefore not simply to teach township entrepreneurs what AI is.
It is to show them what AI can do for the business they already have.
THE DIGITAL DIVIDE IS CHANGING
South Africa has made significant progress in digital connectivity, but access remains uneven. Statistics South Africa’s General Household Survey reported that 82.1% of households had internet access through at least one means in 2024, with mobile devices accounting for 75.6% of access nationally. In Gauteng, internet access through any means was 86.0%.
That mobile-first reality matters.
The township entrepreneur does not necessarily need an expensive office, sophisticated hardware or a large IT department to begin participating in the digital economy. The smartphone is increasingly becoming the business gateway.
But connectivity is only the foundation. The next challenge is digital capability.
Research examining technology adoption among township businesses has identified barriers including digital literacy, infrastructure, financial constraints, trust and security concerns, and limited access to appropriate support. Research specifically examining AI adoption among township small businesses has similarly identified low digital literacy, inadequate infrastructure and distrust of technology as barriers to adoption.
That creates an important distinction:
Digital access gives an entrepreneur the door.
Digital skills teach them how to open it.
AI can potentially change what they are able to do once they walk through it.
FROM USING TECHNOLOGY TO USING DATA
The real opportunity may go beyond AI tools themselves.
It is the creation of digitally intelligent township businesses.
Imagine a township entrepreneur who can understand:
Which products sell the fastest
When customers spend the most
Which marketing messages generate responses
Where customers are coming from
What stock needs to be replenished
Which services are becoming more popular
How much profit is actually being generated
Which opportunities, tenders or markets could be relevant to the business
That information becomes increasingly valuable when it is captured digitally. And when thousands of businesses begin generating structured information, something even bigger becomes possible:
the township economy itself starts generating usable economic data.
This is an important part of the next digital chapter.
The township should not only become a consumer of technology.
It should become a producer of data, innovation and digital businesses.
THE POLICY DIRECTION IS MOVING TOO
The broader policy environment is increasingly recognising the importance of digital transformation for township and rural enterprises.
In its 2026/27 Budget Vote, the Department of Small Business Development identified digital transformation as a priority and highlighted the importance of integrated digital infrastructure, digital payments, financing mechanisms and enabling regulations in building entrepreneurship ecosystems. The department also set targets around formalising informal enterprises, supporting township and rural businesses and expanding digital access.
Gauteng is also investing in digital infrastructure and skills, including plans to connect additional provincial sites, support township-based ICT entrepreneurs and establish an Artificial Intelligence Office to coordinate responsible AI adoption across government.
This means the conversation around AI in the township is moving from an interesting idea to an increasingly important economic conversation.
BUT WHO IS MAKING AI PRACTICAL FOR THE TOWNSHIP?
This is where the conversation needs to change. The township does not need another technology conversation that happens somewhere else, in language that feels disconnected from everyday business.
It needs practical demonstrations.
It needs entrepreneurs to see the technology.
It needs young people to experiment with it.
It needs businesses to understand how AI can improve productivity.
It needs financial institutions, telecoms companies, technology companies, government, universities and entrepreneurs in the same room.
And importantly, it needs the conversation to move from:
“AI is the future.”
to:
“Here is how I can use AI in my business today.”
ENTER THE KASI TECH FESTIVAL
That is the thinking behind the Kasi Tech Festival.
Taking place in May 2027 at Nasrec Expo Centre, the festival is being developed around a simple proposition:
The Township Is Ready for Its Next Operating System.
The festival will bring together technology, AI, innovation, entrepreneurship and the township economy to explore what happens when emerging technology is made practical, accessible and relevant to the businesses and communities that make up the township economy.
The focus is not technology for technology’s sake. It is about technology that can create opportunity. From AI and fintech to digital commerce, connectivity, mobility, smart business tools, cybersecurity, devices and digital skills, the Kasi Tech Festival will create a platform for entrepreneurs and communities to engage directly with the technologies shaping the next economy.
THE NEXT TOWNSHIP ECONOMY WILL BE DIGITAL
The township economy has always been entrepreneurial. What is changing is the toolkit. The entrepreneur who once relied almost entirely on foot traffic can now reach customers digitally. The business that once relied on a cash register can now accept digital payments. The entrepreneur who once had to produce every piece of marketing material manually can now use AI-assisted tools.
The business owner who once made decisions largely from instinct can increasingly use data. The opportunity ahead is to ensure that township entrepreneurs are not simply consumers of these technologies, but capable users, creators and owners of them. The next operating system of the township economy may therefore not be a single piece of software.
It could be an entire ecosystem of people, platforms, data, connectivity, skills, capital and technology. And the race to build that ecosystem has already begun. The question is no longer whether the township will participate in the AI economy.
The question is what the township will build with it.
KASI TECH FESTIVAL 2027
May 2027 | Nasrec Expo Centre | Johannesburg
The Township Is Ready for Its Next Operating System.
Explore the Kasi Tech Festival and follow the journey towards 2027:
