Tana Malinga
Johannesburg, South Africa – 14 October 2025
Standard Bank has shared its first Township Informal Economy Report. This report gives new information about small, local businesses in townships. These businesses are very active but often do not get the help they need.
The report shows that almost 80% of these businesses are not registered. This means they do not follow formal rules like paying taxes or registering for VAT. Because of this, they cannot get loans, use digital tools, or join big markets to help them grow.
Even with these problems, township businesses are very important. They give jobs to almost 1 in every 5 workers in South Africa. Experts also say these businesses are worth almost one trillion rand, which is a big part of the country’s total economy.
The report looked at businesses in Gauteng, KwaZulu-Natal, Western Cape, Limpopo, and North-West. These businesses earn between R100,000 and R50 million each year. The report shows how big the township economy is, but also what problems are stopping it from growing.
Simone Cooper from Standard Bank said:
“This report shows the big problems that township business owners face. It also shows what we need to do to help them. They need better access to money, markets, and digital tools. With the right help, these small businesses can grow.”
The proof is in the stories of two Soweto giants who grew from informal to formal business. Wandile Zondo, co-founder of Thesis Lifestyle, started by selling vintage clothes and built a strong fashion brand. Zwelakhe Mndebele, founder of All in 1 Emergency, grew his black-owned business from a backyard into a national emergency service and auto body repair shop.Their journeys show what Standard Bank calls “growth from the ground.” They prove that township dreams can go global. Yet, like 80% of small businesses, they began with no funding, no formal space, and no digital tools.
Some important points from the report:
Almost 80% of businesses are not registered, so they can’t get loans or join formal markets.
In one area, there can be up to 20 businesses doing the same thing, so it’s hard to make enough money.
Less than 9% of these businesses have bank loans. Most use their own money or get help from family.
Even though most still use cash, over 56% prefer bank transfers, showing they are ready for safer digital payments.
49% of businesses work from homes or garages, and only 11% are in proper shops or buildings.
Many township businesses help their local areas by giving jobs, sponsoring events, or helping young people.
Naledzani Mosomane from Standard Bank said:
“This report shows the real life of township business owners. They are strong and hardworking. But they face many problems. At Standard Bank, we want to stay close to these clients, listen to them, and help them as they grow.”
Standard Bank made this report to help their services fit better with what township businesses need. The bank will also work with government, companies, and other groups to help township businesses grow. The report says that cheap digital tools, easy payment options, and step-by-step help are needed to support these businesses.
Standard Bank has tools to help small businesses. Some of these are:
MyMoBiz – A simple bank account made for township business owners.
SimplyBLU – A platform that lets businesses accept cards, send invoices, and be online.
Insurance and loans – To give money for daily work and protect the business from risk.
