Township entrepreneurs urged to embrace digital ahead of festive season
Despite this, most township and informal retailers remain invisible online, a growing concern as the festive trading period approaches.
Flood, a mobile-first digital commerce platform operating across emerging markets, says digital visibility has become a form of currency for small businesses as South Africa heads into what is expected to be its biggest retail quarter yet.
Without it, many township retailers will struggle to reach the growing number of mobile-first consumers who search for deals, store hours and nearby products on their phones.
Mastercard data shows that e-commerce, including mobile commerce, is projected to reach around 10% of South Africa’s total retail sales, more than R130bn, by the end of 2025.
Yet, according to FinMark, about 60% of informal small, medium, and micro enterprises (SMMEs) operate with turnovers below R100,000 and have limited or no digital adoption.
Flood notes that even when small retailers own smartphones and have access to banking services, they often lack the tools or knowledge to market themselves or become discoverable in mobile search results.
This makes it difficult for them to attract customers who increasingly rely on digital channels to find local products and services.
The company adds that the informal sector does not need to be disrupted but rather recognised and supported through accessible digital tools.
By becoming visible in existing ecosystems, such as apps and platforms already used by consumers, township retailers can strengthen their connection to local customers and participate more fully in the festive economy.