craighannabus.com

Tag: township

  • Load shedding: Forcing the township economy to go international?

    Load shedding: Forcing the township economy to go international?

    While the protests in 2021 were expected to bring the Kasi economy to its knees, quite the opposite happened. Entrepreneurs who had cut their innovation ‘teeth’ during Covid faced the new challenge head on.

    Township delivery networks sprang up, filling the gap that Mr. Delivery was struggling to fill. Spaza shops went from strength to strength. New eateries sprang up, mimicking those found in the affluent parts of Jo’burg. These, and many other innovations provided a foundation for big brands to partner with entrepreneurs in new and exciting ways.

    Load shedding in real numbers is devastating

    However, the fairytale has been short-lived. According to a recent News24 article, since Eskom has stepped up its load shedding schedule, 66% of township businesses have had to cut jobs, with 60% unable to operate during load shedding hours.

    The implications are massive. Not only does the township economy contribute 5.2% to South Africa’s GDP, but it also employs over 2.6 million people. Load shedding in real numbers is devastating.

    Hyper-local brands

    The township economy is also built partially on a reawakened love of local brands. We’re not talking South African brands (although that’s a thing too), we’re talking hyper-local brands. As in, something your neighbour makes.

    This serves to keep cash circulating within the township, which means that one transaction enriches a long line of people, all living around you. One of the measures of a community’s wealth is the lifespan of cash within that community before it exits into the world.

    With a load shedding economy, township residents with money to spend will have to look outside the township for premium goods and luxury experiences. It’s a double whammy when load shedding and a fairly closed consumer ecosystem come to blows. Load shedding always wins.

    The one saving grace

    One saving grace is that with an increase in internet availability and a high unemployment rate, many are turning to web-based businesses to generate an income.

    According to the World Bank, a growing body of research shows that access to Wi-Fi has a positive effect on an embattled economy by providing access to global markets.

    Are global markets hungry for South African products? The international success of Maxhosa Africa proves that.

    With higher demand, stronger international currencies, and a hungry populace, the Kasi economy may be saved after all.

    We live in hope

    When it comes to things like fashion, we have the government to thank for where we are today. Nearly 15 years ago, the government instituted ridiculously high import duties on clothing in an effort to curb the influx of cheap brands from China.

    The plan was to stimulate the local fashion economy and it seems to have worked. What needs to happen next is the cutting of export taxes to support township entrepreneurs. While it would serve the country to lower both these (and other taxes), there’s been no word as to whether this will happen.

    How does this affect marketers? Well, should South Africa begin exporting locally made items (like fashion), in bulk, we may need to start understanding the international consumer a lot more. We live in hope.

  • Digital Marketers don’t forget to look up

    Digital Marketers don’t forget to look up

    In 2021 we released our very first Township CX Report. It went well. It wasn’t a spectacular success, but it was good enough to motivate us to do it again in 2022. This time around, we wanted it to be bigger and better.

    An injection of authenticity

    We decided that part of the bigger and better was an injection of authenticity. It’s one thing to see some data on a spreadsheet, but it’s quite another to go to where the people are. To sit with them, to talk about their experiences, to connect. We chose three townships, Alexandra, Soweto, and Katlehong, and we planned our expedition.

    I call it an expedition because, for me, it was. If you can’t tell by my profile picture, I’m white. I’m suburban in every sense of the word. A trip to a township is not an everyday occurrence for me. It’s a thing. It’s an expedition. It’s new and alien and daunting. What is every day for most of South Africa, is not every day for me. In many ways, I’m a tourist in my own country. And that’s not okay.

    2021 was not a great year for South Africa. Covid-19, the riots, and a bunch of other things led me to believe that this country was in dire straits. I didn’t hold much hope. I expected our township visits to be depressing. I expected to see economic hardship, strife, and suffering. Sure, some of that was there. But there was also something else.

    A masterclass in entrepreneurship
    In Soweto we saw spaza shops and restaurants rebranding to their own unique look-and-feel. A shift away from the branded cold-drink signs we’ve seen so often. No, they had their own brand identities. We saw entrepreneurs coming up with new and innovative ideas, from bespoke food delivery services to unheard of financial services.

    If you want to attend a master class in entrepreneurship, downtown Alex is where it’s at. In Katlehong we met a man that has managed to connect spaza shops together through his distribution network, all while inventing a cold drink that’s just as healthy as it is delicious.

    In a way, 2021 was a blazing inferno, burning through the lives of South Africans, leaving ruin in its wake. But entrepreneurship and innovation were birthed in that fire, and they rose like the proverbial phoenix, carrying the township economy upward with it.