[This article’s points are taken from my fifth book Township Biz Adjacent (newly updated) and it is available in all bookstores nationwide.]
I call townships an ECONOMIC CYCLONE.
The population keeps growing and will keep growing.
This means money-making.
Because they will keep needing basic goods and particularly FMCG products (Fast Moving Consumer Goods), e.g. nappies, bread, electricity, airtime, clothes, entertainment.
Corporate South Africa has been making billions in townships forever.
‘Soweto has a R34 billion consumption and a population of 2.2 million people. Tembisa has R20.4 billion and Soshanguve has R19 billion,’ says a Fraym analysis of granular retail spending data (2019) over the past ten years.
It’s time township entrepreneurs challenged Corporate South Africa.
REASONS WHY BILLIONS ARE MADE AND WILL BE MADE IN TOWNSHIPS – AND SHOULD BE BY BLACK ENTREPRENEURS
- Townships have more people per km2 than cities, rural areas and suburbs.
- E.g. Johannesburg is 134-78 km2 larger than its adjoining township Soweto – which has 3497-53 more people per km2 than Johannesburg.
- This trend where a township has more people – yet smaller area size/km2 – than its adjoining town plays out throughout most of the townships. It is true with (township versus adjoining town/city) Tembisa versus Kempton Park, Soshanguve versus Pretoria, Thembalethu versus George, Sharpville versus Vereeniging, Mahwelereng versus Mokopane, Umlazi versus Durban, etc.
- Therefore townships have more consumers for your consumer products – (FMCG products are the gateway).
- Therefore you have more people to market to within a small area – and thus it is cheaper. It is cheaper paying someone to hand over flyers to passersby or renting someone’s front wall to brand with your product/business. All in all these all is cheaper compared to a big signage. It is still cheaper even with social media ads over Facebook or Instagram, e.g. for as little as R10 a day.
- To put it in another way, townships have more traffic of people who can see your advertising displays.
- It is cheaper to stay in townships than cities and suburbs, e.g. cheaper municipal rates/levies and cheaper rentals.
- Cheaper rental means it is an attractive and affordable place for people looking for greener economic opportunities in industrial and urban areas (college, factories, etc.).
- People from rural areas flock to townships in order to work, school or look for employment. It is like that in good and bad economic times.
- For you as the business owner, business premises are cheaper to rent than affluent areas.
READ ALL THIS AND MORE IN TOWNSHIP BIZ ADJACENT BOOK AVAILABLE IN ALL BOOKSTORES
Township Biz Adjacent book available nationwide at Exclusive Books, Bargain Books, Takealot.com, Protea Books and Loot.co.za.
Find more info on the books here www.tiisetsomaloma.com/books.
Here is a free book from me to you (click the link to get it): HOW TO START A BUSINESS SIMPLE & EASY http://tiisetsomaloma.com/businesseasy.
MORE INFO ABOUT TOWNSHIP BIZ ADJACENT BOOK
The Township Biz Adjacent book brings a never before analysis of the billions worth township economy – including the rural areas and the ghettos – through the Adjacent Possible Theory.
The book purports that, the billions generating townships are a goldmine that now unlike before, is favourable and ready to be mined by young black startup entrepreneurs, especially those dealing in B2C (Business to Consumer) and FCMG (Fast Moving Consumer Goods) products.
The booklet shows that understanding the economics of townships through the adjacent possible theory can help us innovate and create suiting products that townships consumers can support virally and continuously, i.e. products that are adjacent to township consumers’ behaviour and metric of uptake.
The Adjacent Possible Theory has its genesis in evolutionary biology and was coined by Dr Stuart A. Kauffman.
The way to making billions is through innovating and the Adjacent Possible Theory is a powerful way to understand innovating of the future.
Ohh by the way, to the MBA and chartered accountant corporate guys, the only way to get ownership of this sort of businesses is if you invest your own money into consumer goods businesses.