The Digital Convergence of Fintech and Proptech in 2025
Strengthening the township economy is essential and can be achieved with a unique blend of technology and trust.
The South African township economy is defined by its entrepreneurial spirit. Today, this economy is valued at nearly one trillion making it one of the most significant contributors to the country’s broader economic environment. These township businesses now number nearly two million and they directly or indirectly support more than 2.6 million jobs. And yet, this economy still contends with daily realities that make business growth difficult such as cash dependency, theft, infrastructure limitations and slow working capital cycles.
Most of these small businesses operate within the informal sector which limits their access to finance, formal support and market opportunities. They also remain reliant on cash. However, there are changes afoot. Growing digital and cashless transaction momentum is being driven by digital payment providers and by ongoing investment from the South African Department of Trade, Industry and competition (DTIC), IDC and NEF. Over the past four years, R6 billion has been invested in projects designed to support the township economy and the surrounding communities.
Another initiative, the Township Economy Awards and Summit (TEAS), has become one of the few national platforms dedicated to addressing these challenges head on. Hosted annually by the Township Entrepreneurs Alliance, TEAS convenes hundreds of micro and small business owners from every province over two days.
The event, an official G20 StartUp20 side event, is endorsed by South Africa’s G20 task force on township and rural development and is not a corporate event transplanted into the townships. It is a township-led summit which is recognised at a global level. It gives South African township entrepreneurs a space to pitch and connect and research from the event has shown that 38% of participants form new business partnerships within six months of attending. With more than 36 data points captured from each attendee across areas like banking access and operating locations, it’s possible to get a real-time view of the township market. And this is exactly the kind of data the Financial Sector Conduct Authority has emphasised in its guidance on responsible digital innovation that supports underserved communities.
This data has also shown a growing move towards formalisation and collaboration. Entrepreneurs want to create structures that allow them to operate safely in environments where cash risk remains high, and to build more sustainable foundations. All of which are indicators of a healthy entrepreneur ecosystem.
TEAS is attended by companies and entrepreneurs. Organisations like Shop2Shop have joined in because it aligns with the practical realities their users face every day. The company has designed systems around low-cost, secure transactions that reduce cash exposure and help entrepreneurs to build a digital transaction history. This is a key step for many operating in the sector because traders can use data like this to access working capital advances that have remained out of reach.
When entrepreneurs have access to short-term finance and when their daily takings aren’t held as physical cash, the risk profile of an entire market changes. Security improves and trading gets easier and growth is less fraught with risk.
Collaboration across companies at events like TEAS are important in South Africa right now. The economic environment is mercurial at best, and there remains considerable geopolitical friction which trickles down through all layers of society. When entrepreneurs get access and exposure to networks and information they can apply immediately, they get insights they can use to instantly change business processes.
What emerges from TEAS is a picture of an economy that is asking for functionality. Entrepreneurs want safer ways to transact. They want the ability to formalise incrementally. They want access to finance which reflects local realities rather than formal-sector assumptions. And they want systems that acknowledge the risks they navigate daily.
The township economy is moving slowly but meaningfully in that direction. The combination of community-led events like TEAS, and public-sector investment and private-sector participation from organisations like Shop2Shop, points toward an ecosystem that is becoming more coherent and connected. What matters now is sustaining environments where township entrepreneurs can build continuity instead of hustling for survival.
