Article by Lonwabo Mtyeku (GP News Media – Community Newsroom) | Johannesburg | 14 October 2025
Johannesburg, South Africa – 14 October 2025
Standard Bank has released its first-ever Township Informal Economy Report, unveiling critical insights into South Africa’s bustling yet under-supported informal business sector. The report shows that nearly 80% of township businesses remain unregistered, operating outside formal regulatory systems such as VAT registration, labour laws, and tax compliance.
According to Statistics South Africa (Stats SA), these unregistered enterprises fall outside the country’s formal economy — a status that excludes them from access to finance, digital tools, and market opportunities that could enable them to scale. Despite this, the informal economy continues to play a vital role in job creation, accounting for 19.5% of total employment in the final quarter of 2024, and is estimated to be worth close to R1 trillion.
“This report shows the structural challenges facing township entrepreneurs and what it will take to overcome them,” said Simone Cooper, Head of Business and Commercial Banking South Africa at Standard Bank Group. “It highlights the importance of market access, funding, and digital enablement. With the right partnerships, township SMEs can move from survival to scale.”
Key Findings
The survey, conducted across Gauteng, KwaZulu-Natal, Western Cape, Limpopo and North West, covered enterprises with annual turnovers ranging from R100,000 to R50 million. Some of the notable findings include:
- 80% of businesses remain unregistered, locking them out of finance and formal growth opportunities.
- Entrepreneurs often face up to 20 similar competitors per community, driving down margins.
- Only 9% have access to bank loans, with most relying on personal savings or family support.
- While cash remains dominant, more than 56% of respondents prefer EFT or digital transfers, showing readiness for safer, digital payment solutions.
- Nearly half (49%) operate from homes or garages, with only 11% based in commercial premises.
- Township enterprises are integral to local economies, frequently supporting youth and community initiatives.
“The insights reflect the lived realities of township entrepreneurs — their resilience, contribution, and the barriers that hold them back,” said Naledzani Mosomane, Head of Enterprise and Supplier Development at Standard Bank Group. “For us, it reinforces the importance of building close relationships, listening to their needs, and supporting them throughout their journey.”
Driving Inclusion Through Tailored Solutions
Standard Bank says the report will guide its strategy in designing solutions that respond directly to the challenges of township SMEs. It will also inform the bank’s collaborations with government, corporates, and development agencies aimed at unlocking township growth.
To support small business development, the bank offers products such as:
- MyMoBiz, an entry-level transactional account for township entrepreneurs.
- SimplyBlu, an all-in-one merchant platform for card acceptance, invoicing, and online sales.
- Small business lending and insurance products, designed to provide working capital and risk cover suited to informal business realities.
“This is about enabling township businesses to formalise, digitalise, and thrive,” Cooper added.
About Standard Bank Group
Standard Bank Group is Africa’s largest bank by assets, with operations in 21 African countries, 4 global financial centres, and 2 offshore hubs. The bank employs over 50,000 people, serves 19.2 million clients, and operates more than 5,400 ATMs across the continent. Its strategic partner, the Industrial and Commercial Bank of China (ICBC), holds a 19.7% shareholding.
For more information, visit www.standardbank.com