The Opportunity Market Overview
A 2017 study by Unisa’s Bureau of Market Research (BMR) estimated 300,000 jobs are created by the spaza economy and it further contributed R9 billion to the economy per annum. SA has 2,500 modern trade outlets, including supermarkets, and 140,000 traditional trade outlets, including spaza shops. This contributed to annual retail sales of R316.5bn to March 2017. Traditional trade in urban and rural areas accounted for 22.3% of this, or R70.5bn.
According to Statistics SA, the informal sector accounted for 5.2% of South Africa’s GDP in 2015 and employed 2 641 000 individuals (17% of all employed) in 2016. Other estimates place it as high as 15% to 18% of GDP.
The informal ‘muti’ market is estimated to be worth between R3 and R6 billion, while there are about 140 000 Spaza shops contributing between R100 and R200 billion per year. The township fast-food market alone is worth an estimated R80 billion per year.
The Size of the Market
AT LEAST 54% OF SA’s POPULATION FALL into the main market segment.
With an estimated 13 million shoppers in the independent and informal retail sector.
Connecting brands with a large consumer segment nationally by delivering relevant messages in proximity to where they live and shop.
1 MONTH PERIOD
15 538 150
933 604 064
44 major Townships across SA
Estimated 2020 population of 10,3 M people
71% of Township residents live in the
3 main provinces.
Gauteng Townships make up 48% of all
Township residents, across 21 townships.