Fintech can bridge the gap in SA's township and rural economy

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That’s according to Lincoln Mali, CEO of Lesaka Technologies, who recently spoke at the Township Economy Summit 2024, hosted by the Township Entrepreneurs Alliance (TEA).

“South Africa’s merchant market remains underpenetrated, with huge addressable opportunities,” he adds.

“Merchants are struggling with pain points that the legacy providers are not equipped to address.”

These include limited access to viable solutions for digital payments, a lack of access to growth capital, and a lack of secure, automated cash management solutions tailored to micro or informal merchants.

The untapped potential of SA’s billion-rand informal economy

The costs of transport, the competitive pricing offered by informal merchants, and improved offerings and customer experience at townships and spazas are powering growth.

With more than 500 townships across South Africa and an informal market estimated to be worth around R900bn, this is a sector that shouldn’t be ignored.

Championing the township economy with Bulelani Balabala, founder of Township Entrepreneurs Alliance (TEA)

Evan-Lee Courie  12 Nov 2024

Mali says that this gap has created significant opportunities for organisations like Lesaka and its subsidiary, Kazang to step in.

“South Africa’s township economy is a remarkable ecosystem of innovation, resilience, and entrepreneurial energy. Informal traders offer essential goods and services while sustaining countless livelihoods,” says Mali.

“Yet these entrepreneurs face unique challenges that require innovative solutions and fresh perspectives. Big businesses need to see township entrepreneurs in a new light, recognise their value, and to partner with them to offer better solutions to their needs. This in turn, will enable entrepreneurs to provide better services to their communities."