Latest news with #townships
Zawya
22-07-2025
- Business
- Zawya
Fintech fuels growth for South Africa's grassroots retailers
According to Stats SA, the informal sector is a cornerstone of the South African economy, providing nearly a fifth of total employment. Accounting for roughly half of informal businesses, traders such as spaza shops and tuckshops form a key part of vibrant economies in townships, rural areas and, peri-urban settings. In addition to creating jobs and helping earn an income for millions of families, these businesses bring services closer to people and keep cash circulating in the community. Yet these micro-businesses operate under tough conditions and were historically excluded from digital infrastructure and financial services formal retailers take for granted. Challenges such as low margins, exposure to cash crime, and poor access to financing and working capital put informal traders' resilience to the test. This is where modern fintech solutions and digital technology have a valuable enabling role to play. Simple, affordable devices and mobile connectivity are helping micro-merchants to run better businesses. Fintechs such as Kazang have come to market with solutions that enable micro merchants to profit by vending prepaid services as well as improve efficiencies through digitalisation. We have seen first-hand how these digital tools are reshaping the township and rural economies. Here are some ways these solutions make a difference. 1. Creating new revenue streams Transactions are small and margins are low in the informal sector. Value-added services (VAS) terminals enable merchants to sell prepaid services such as electricity, airtime, data, lottery tickets, and gaming vouchers. The merchant earns commission on each transaction, improving revenue and profits. 2. Boosting customer footfall and loyalty Informal traders can attract more foot traffic by offering a single place for customers to shop for basics as well as draw cash, pay bills, or purchase prepaid services. This gives traders a chance to upsell and grow their baskets — without spending more on advertising or stock. Once customers know they can withdraw cash, pay DStv, or recharge electricity from a local vendor, they will keep coming back. 3. Reducing reliance on cash At Kazang, around 60,000 of our 90,000 devices now accept card payments, with many also supporting cash-out functionality. Merchants can also use a digital wallet linked to a Kazang terminal to pay suppliers from wallet funds. Less cash on hand means less exposure to theft; it also reduces fees associated with cash withdrawals and deposits. 4. Enabling access to financial services When a merchant uses a VAS terminal regularly, they will start to build a digital transaction record. That opens the door to microloans, insurance, and other financial services that were previously out of reach. By helping informal businesses go digital, we can lay the groundwork for future access to working capital and growth finance. 5. Driving economic growth and consumer benefit A successful network of informal traders helps to foster more prosperous communities. Customers no longer need to travel long distances or pay taxi fares to withdraw money, buy electricity, or make bill payments. This translates to tangible savings in time and transport costs for consumers, while keeping money circulating within local economies. Affordable fintech tools bring the best modern tech to the informal market Businesses are bringing modern fintech tools to the informal market, enabling small traders to digitise, diversify, and grow. These solutions are designed to be easy to use, affordable, and accessible, bringing financial services to the doorsteps of excluded South African populations while helping informal traders to grow their businesses. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
02-07-2025
- Business
- Zawya
South Africa: Sappi boosts local enterprise with MSME investment
South Africa's rural and peri-urban areas are home to a vibrant informal economy - an enterprising ecosystem of spaza shops, street vendors, barbers, mechanics, and countless micro-enterprises that shape daily life in the townships. It's a space defined not only by survival, but by creativity and community-rooted resilience. And there's a name for it: kasinomics. Coined by South African marketer and author GG Alcock, kasinomics speaks to a R1tn economy built on grit, trust, hustle, and lived experience. With support from Sappi, Baleti Estate in Mpumalanga has diversified into honey production—selling at Ngodwana Farm Stall and gaining skills through ongoing training and certification. Mpume Gumede was able to invest in heavy machinery needed to secure a contract at Stanger Mill. On International Micro-, Small and Medium-sized Enterprises (MSME) Day (27 June), Sappi Southern Africa is proud not just to acknowledge the impact of kasinomics - but to be an active partner in sustaining its momentum and unlocking its true potential. 'MSMEs are the oxygen of the South African economy,' notes Lesiba Lamola, regional ESD sourcing manager at Sappi. 'They create jobs, they drive innovation, and most importantly, they uplift entire communities. Our mission has been to move beyond handouts and into meaningful partnerships.' That mission is reflected in the Abashintshi programme launched in 2018, which introduced 120 young people to Asset-Based Community Development (ABCD) principles, equipping them with the skills and confidence to spot opportunities and ignite enterprise in their own backyards. From that initiative, a wave of local entrepreneurs has emerged - each with a compelling story. In Hlokozi, KwaZulu-Natal, Patrick Gcina Khumalo evolved from a self-taught welder into the owner of a certified carpentry and welding business. With tools, equipment, training, and ongoing mentoring from Sappi's Enterprise and Supplier Development (ESD) team, Patrick now takes on larger contracts and employs others in his community. 'This support has transformed my business, giving me the confidence to take on bigger projects, build a better future, and even create jobs in my community,' he says. Equally inspiring is Nonkululeko Zimba, based in Vimbukhalo near Winterton. A former Abashintshi participant, she used her ABCD training to launch Sehlukaniso (Pty) Ltd, a brickmaking business that helps community members build dignified homes. With funding and technical support from Sappi, her business has expanded its reach - and its purpose. 'I still can't believe my dream has come true,' Nonkululeko shares. 'This is how I bring change to my community.' Mhlekhazi Phoswa, a local contractor, has expanded his operations thanks to a five-year service contract awarded by Sappi. Nonkululeko Zimba's brickmaking enterprise received a boost with brickmaking equipment donated by Sappi's Enterprise Supplier Development (ESD) Department. Sappi's broader ESD strategy, formalised in 2018, continues to catalyse grassroots development with tangible outcomes. In FY2024 alone, the company spent R372m procuring from SMEs - surpassing its target by R250m - while sustaining over 1,500 jobs. A further R57m was spent through subcontracted SMEs, and R900,000 was invested in SME training and development. The results speak volumes. From logistics to construction, lives are changing. Through a strategic partnership with the Ithala Development Finance Corporation, transport entrepreneur Sanele Mkhize took ownership of three new Mercedes-Benz trucks valued at R11.6m. Meanwhile, Mpume Gumede of Thuba Construction was able to acquire heavy machinery after being awarded a five-year Sappi contract to transport bagasse at the Stanger Mill. 'I cried tears of joy when the loan was approved,' she says. 'Now I know I'll meet Sappi's specs and grow my company.' The company's renowned Khulisa programme is an anchor of inclusion across the forestry value chain. In 2024, over 4,100 growers delivered 318,116 tons of timber to Sappi operations - resulting in R332.6m paid to these small-scale suppliers. Over 550 of them completed forestry training during the year, covering everything from safety to silviculture management. Beyond timber, some Khulisa participants - like Baleti Estate in Mpumalanga - have begun to diversify their enterprises. With Sappi's support, Baleti now produces and sells honey at the Ngodwana Farm Stall, while receiving continuous training and certification assistance. 'Our perspective has completely changed,' says director Mandla Mooko. 'Sappi's guidance helped us expand and see new possibilities.' Patrick Khumalo, owner of a carpentry and welding business, received tools and a converted container workshop through Sappi's support. Sanele Mkhize, centre white shirt Back in KwaZulu-Natal, the Inkanyezi Yamahobe Trust in Richmond has grown into a successful community-based enterprise with 468 hectares of timber-producing land. With Sappi's help, they've established market access, improved productivity, and now deliver annual dividends of R40,000 per household - with ambitions to double that figure. 'Sappi's partnership has been a game-changer for us,' says chairperson Thando Nxele. 'It's enabled us to grow, thrive, and contribute meaningfully to the local economy.' There's also the story of Nhlanhla 'Mhlekazi' Phoswa, who began as a forestry labourer in 1985 and now runs one of the largest silviculture contracting firms in the KZN South region. Awarded a five-year contract with Sappi in 2022, his company, Mhlekazi Forestry, has grown from 50 to 80 employees - all but one from surrounding communities. 'Our goal is to upskill and employ even more people,' he explains. Through it all, the unifying thread is opportunity - the kind that's shared, earned, and scaled. With 942 MSMEs actively participating in Sappi's supplier value chain, the message is clear: when corporate South Africa builds deliberate, values-led partnerships, transformation takes root. And that's the spirit of MSME Day - celebrating not just small businesses, but the outsized impact they have in reshaping industries, empowering households, and creating intergenerational legacies. Because kasinomics isn't just a buzzword - it's a blueprint for a more inclusive future. And together, brick by brick, hive by hive, tree by tree, that future is already being built.
Mail & Guardian
30-06-2025
- Entertainment
- Mail & Guardian
Sbusiso Jaxa's Tuneroyalty and the fight for independent artistry
Sbusiso Jaca developed the Tuneroyalty platform where musicians can upload their work, control their rights and get their fans to invest in their careers. (Photo: Siphesihle Nene '95) There's something deeply spiritual about the way sound travels through the South African landscape. You hear it in the hum of taxi radios, the spontaneous harmonies at train stations, the Sunday gospel flooding township streets. Ours is a country where music isn't background noise, it's testimony. It tells of struggle, joy, survival and, above all, resilience. But somewhere between the studio and the spotlight, too many South African artists get lost. Their dreams are muted by exploitative contracts, drowned by lack of access and discarded by a system that often doesn't care who makes the music, only who profits from it. That's the world Sbusiso Jaca saw — and it shook him. 'I started off as a music producer,' he recalls. 'Working with upcoming artists around KwaZulu-Natal — mostly independent ones. 'What I saw was painful.' Painful, not because of a lack of talent — there's no shortage of that. The pain came from watching brilliant young creatives with no money for music videos, no marketing budget, sometimes not even the R300 needed to distribute their music online. In a country with soaring unemployment, this was more than a career issue. It was an economic crisis. 'Even when artists do get signed,' Jaca explains, 'they walk away with just 10% or 15% of what their music earns.' That is not a deal. That is dispossession. From this frustration, Jaca did what many South Africans do best: he innovated. He built Tuneroyalty, a homegrown tech platform that allows independent artists to upload their songs, maintain control of their rights and invite their fans to invest in their careers. 'We needed something built for us, by us,' he says. 'Americans and Europeans have platforms tailored to their music industries. We didn't. So we built one.' On Tuneroyalty, artists can choose how much of their music rights — be it publishing, master or composer rights — they want to offer. Fans can buy into these rights, sometimes for as little as R100, and become stakeholders in the song's success. 'Imagine if we had invested in [by Mandoza's] Nkalakatha when it first came out,' Jaca says. 'That song is generational. What we're building is a way for fans to be part of the legacy — from the beginning.' This isn't just about streaming. It's about structural power. It's about rewriting the rules of who gets to win. One of the groundbreaking aspects of Tuneroyalty is its use of artificial intelligence (AI), not to replace artists, but to protect them. 'The biggest issue is a lack of knowledge,' Jaca says. 'Many artists don't even know how to register their music properly. That's where labels take advantage.' Tuneroyalty's AI chatbot, trained on South African legal knowledge and music industry best practices, walks artists through the process of song registration, contract review and royalty structures. It even scans contracts for potential loopholes, an affordable legal safety net for those who can't afford traditional lawyers. And the AI isn't just smart, it's local. It understands the slang, the genres, the legal frameworks here, not in LA or London. 'This is technology that speaks amapiano,' Jaca laughs. 'Not corporate-ese.' The emergence of platforms like Tuneroyalty hasn't gone unnoticed by traditional institutions like the Southern African Music Rights Organisation (Samro). As the regulatory body responsible for administering performance royalties in South Africa, it has long been the gatekeeper of the music economy. In a formal response to questions about AI-powered platforms like Tuneroyalty, the organisation acknowledged the shift. 'Samro is dedicated to safeguarding the rights of music creators and copyright owners,' it says. 'We're actively adapting to technological trends, including AI, while ensuring our members benefit first.' Samro emphasises that its systems already integrate audio fingerprinting and global metadata tracking. They're not standing still but they're cautious about decentralised models. 'Fan investment complicates royalty splits,' Samro notes. 'If not documented properly, it can cause delays or disputes.' More importantly, Samro highlights that bypassing collective management organisations can result in missed income from live venues, international reciprocal agreements and broadcasting rights. Still, there's recognition that change is inevitable. 'Technology and AI-driven tools are not avoidable,' Samro concedes. 'But they must be regulated to preserve human authorship and ensure fair remuneration.' Where Jaca sees a movement, Samro sees a maze of legal complications. 'Until independent platforms demonstrate compatibility with verified metadata standards,' the organisation explains, 'collaboration remains difficult.' There are regulatory challenges to South Africa's copyright legislation, last updated in 1978, which doesn't account for AI, decentralisation or even the complexities of fan-based ownership models. But reform is underway. Samro is lobbying for clearer legislation on AI authorship, digital royalties, and platform accountability. 'We're working with lawmakers,' its statement says. 'This has to be done right.' While Tuneroyalty is rooted in South Africa, its vision stretches across the continent. Many African artists, from Lagos to Nairobi, face similar challenges — limited infrastructure, poor access to capital and exploitative label deals. 'We're starting here because we know this struggle,' Jaca says. 'But the goal is Africa.' His dream is to scale the model across the continent, using South African lingo, legal precedent and lived experience as the foundation. 'It doesn't talk like an overseas AI,' he smiles. 'It speaks our language.' For Jaca, justice isn't abstract. It's hyper-specific: 'Justice looks like a kid from a township, using a slow old Pentium 4 computer and pirated software, who makes a hit. He doesn't sign a bad deal. He uploads it to our platform. Sells 10% to fans. Gets legal advice from AI. And owns everything.' That's the dream. Not to fight the industry with protests but with platforms. Not to destroy legacy structures but to render them optional. 'One day,' Jaca says, 'that same artist might buy the label.' Samro isn't ignoring the wind of change. The organisation has modernised its licensing with digital platforms such as TikTok, Spotify and Netflix. It has also implemented AI tools to streamline its royalty distribution, all while participating in global networks like the International Confederation of Societies of Authors and Composers to influence international policy. But it also maintains its role as protector of legacy revenue — radio, TV, public performances — income sources that independent platforms often overlook. 'Our priority is transparency, efficiency, and creator-first advocacy.' Still, as more artists gain digital tools to manage their rights, Samro must adapt, not just technically, but philosophically. The future is not either/or — it's both/and. When we talk about music, we often speak of hits, charts and fame. But behind every great South African song is a story of sacrifice and of long walks to dusty studios of late nights and borrowed beats. 'I remember Nasty C talking about how he used to walk long distances just to record,' Jaca says. 'That's the reality. Labels don't understand that kind of pain.' Tuneroyalty is a bridge to dignity, to ownership, to legacy. It says: 'If you've carried the beat this far, you deserve the rewards that come after.' And Samro, for all its formality, seems to be listening. So, here we are, standing at the threshold of a new soundscape. One where artists don't need permission to release, don't need to be discovered to succeed and don't need to sell their souls to survive. As Jaca puts it: 'If we can't own land, let us own our music.' And maybe that's enough. Maybe music is land. Maybe it's inheritance. Maybe it's our last claim to something truly ours. Either way, the message is clear— the beat will go on but this time, it's on our terms.
The Herald
23-06-2025
- Politics
- The Herald
South Africa's post-apartheid far left has always been a figment of our imagination
According to these people, my decision not to vote meant that I was part of the problem. I have always been conflicted about voting and participating in politics in a way that would not cause a moral conflict. By choosing to be affiliated with a particular political formation, this often landed me in a moral dilemma that somewhat haunted me, because as a journalist, how do I meaningfully provide a voice for the voiceless if I exert my emotions and being towards one organisation? I also decided against casting my ballot as a form of protest, because I had been on the hunt for a political party that would feel like home, in search of a party that was serious about the genuine emancipation of our people. For as long as townships exist and there are those who have to wake up in the wee hours of the morning, to catch two to three buses, taxis or trains to travel to work so that they get there on time, we still have a lot to fight for and the fact that the so-called liberation movement has never earnestly prioritised bringing the economy to the people is disheartening. But after numerous debates about the importance of voting, I have decided that I will be on the hunt for a political party that seeks to address my pan-Africanist needs. I now understand that one can be a member of a party, but not necessarily hold positions. I have toyed with ideas of voting for organisations that seemed to mimic the leftist ideology, but non of them have convinced me to give my vote to them. The recent public spat between axed MK Party secretary-general Floyd Shivambu and his party as well as his former political home, the EFF, has left me believing without a shadow of a doubt that the existence of a true leftist party in South Africa is a figment of our imagination. Confronted by Biko's startling quote: 'Black man, you are on your own.' These words have never rung truer than they do now. In South Africa, the black man exists in silos. If you are unemployed, you remain alone until you take yourself out of that ditch and in the event that the odds are against you and you don't find employment, you stay there and wait for the days to go by until your maker calls you by name. If you are suffering at the hands of a violent man, you will be heard of once your body is found by a passer-by in an open field and you become yet another femicide headline. I could write about these hopeless situations that are the realities of many black men and women until we all turn blue in the face. If we truly did have a pan-Africanist presence in South Africa, we would not be so helpless and hopeless.
Mail & Guardian
16-06-2025
- General
- Mail & Guardian
(Re)centre youths in city planning
Urban jungle: Cities in South Africa are not geared towards making life easy for young people, particularly those who are looking for work. Photo: Delwyn Verasamy The For example, in South Africa, youth (defined as ages 15 to 35) make up just over Despite young people making up a significant demographic in cities, youth are often excluded from policy and decision-making processes. Furthermore they are more vulnerable to some of the most acute problems that have come with urbanisation such as unemployment, poverty and violence. For instance, according to the most recent As 16 June, South Africa's national youth day, approaches, we should reflect on how we can do better for young people and, more specifically, how our cities can be (re)designed to address some of the key challenges that young people face. Specifically in the context of One of the most difficult issues since 1994, for instance, was how to incorporate townships and informal settlements into the formal functions of the city, not just from a service delivery point of view but also from a developmental one. Consider Cape Town. Forced removals, prohibitively high property prices and ineffective transport (and other) policies have A 2022 YouthCapital Urban planning and spatial design can directly address some of these issues by designing and implementing policies that are centred on empowerment, supporting and improving information and communication technology to reduce the need to travel, and to cut travel costs through better designed public transport infrastructure. Outside of looking for jobs, the spatial design and layout of a city can also be used to promote the development of small businesses and entrepreneurship. This is particularly relevant in the South African context as the informal economy accounted for This sector is a key opportunity for local governments to support and facilitate youth entrepreneurship. In light of this, not only is urban planning important for youth in job creation but also for enhancing youth entrepreneurship. Last, urban and spatial design is important for improving and supporting people's As a result, centring youth But the urban experience is often marred by a complex set of issues that intersect across social, economic and historical lines. This has made cities increasingly unfriendly towards young people, especially for the most marginalised. Therefore, there needs to be a greater emphasis on making cities more inclusive and community orientated. Scholarship on Community is important especially when looking to make cities more friendly, because it creates a sense of belonging and support, which can help young people stand against destructive activities such as gangsterism. While these are just a few ways of centring youth in the conversation about urban planning and development, it highlights a crucial need for more inclusiveness in urban policy. Over the past two decades, a number of urban policies and frameworks have been introduced and revised, but there seems to be a misalignment about who these policies are for. Perhaps it's time to rethink who we want to build cities for and what we want our cities to be. Stuart Morrison is a data analyst in the Governance Insights and Analytics team at Good Governance Africa.
