South Africa’s township businesses face a persistent cash flow crisis that stifles growth, but practical solutions are within reach.
In a continued effort to drive growth in South Africa’s townships, the TEA Kasi Business Workshop kicks off its fourth edition of impact initiatives aimed at tackling challenges faced by micro and small businesses operating within the township economy. This nationwide initiative is dedicated to equipping township entrepreneurs with practical skills, market access and enterprise development support.
South Africa’s township economy is a powerful engine of inclusive growth, with annual consumer spending estimated at nearly R900 billion, a figure we at TEA believe is still a conservative number as our estimation is that the economic activity within this market is above R1,5 trillion. The township economy supports millions of jobs through everyday retail, food, services and transport among many other sectors. However, the market faces severe pressure. Our recent surveys indicate that 60% of micro enterprises reported weak cash flow.
Key Challenges Facing Township Businesses
- Lack of digital transformation: 57% lack formal accounting systems and 77% manage finances manually, leading to poor forecasting, mixed personal/business funds, late payments, and weak credit histories as per Stats SA.
- No access to payment devices: Over 74% of micro enterprises have indicated that they don’t have a payment device within their business.
- Lack of technical funding: 64% of micro enterprises have indicated that they have struggled to access growth funding for equipment and machinery to help scale their operations.
- Low formalisation: Almost 90% remain unregistered and non-compliant, which in turn blocks access to formal markets, grants and growth opportunities.
How to Overcome These Challenges
Successful township businesses shift from survival to sustainable growth; they utilise practical and low-cost steps:
- Providing them with financial management tools: There are a number of low costs and some free to use financial management tools that are in the market that can be utilised by these enterprises.
- Digital transformation support: One of the biggest assumptions is that enterprises operating within the township economy do not want to transform, however the reality is far from the truth. For true and meaningful digital transformation to take place intentional support needs to be offered to these businesses through digitising their payments, marketing and operations.
- Financial literacy: Train the entrepreneurs in the discipline of setting clear payment terms, ensure invoicing is done promptly, separate personal finances from business finances and increase their credit score.
- Mentorship support: The reality of business is that you don’t know what you don’t know which is why at TEA, we take on a hand on approach to providing mentorship and guidance. We believe that mentorship is key to the growth of any successful entrepreneur, funding without mentorship support only yields long-term failure.
- Information: Correct information matters in a market that has an influx of confusion. One of the key challenges we have observed around the lack of payment device adoption is not because they are not needed but there is no clear information in this market to enable the entrepreneurs to make an informed decision, as a result, some abstain from participating in these initiatives.
Township businesses across South Africa remain stuck in survival mode due to cash flow challenges and limited access to funding and digital tools, a gap the TEA Kasi Business Workshop in Atteridgeville aims to address.
With key insights and solutions The TEA Kasi Business Workshop taking place in Atteridgeville, will focus on “How to Manage Your Cash Flow,” in order to assist township businesses to move from a survivalist business to a systemised entity. The City of Tshwane (Pretoria) has a vibrant entrepreneurial community, which has enabled TEA to directly impact 4000+ township businesses, support over 388 black owned business suppliers and provided grant funding in the form of equipment, machinery and technical support in Mabopane, Mamelodi, Atteridgeville, Hammenskraal, Soshanguvhe, Temba and Olievenhoutbosch.
The past beneficiaries from Pretoria are: Bonolo Monakedi of Entle Kiddies, a children focused hair salon. Rosina Masetla of Tau Royal Entertainment, a professional drone and photography studio. Jennifer Marikhela of Nakie Skincare brand, an authentic skincare range with local ingredients. Keletso Tshomarelo Letwakwe of PasswordKid, is a child safety technology company.
The TEA Kasi Business Workshop has five pillars:
- Kasi Pitching Challenge: A competitive platform that enables local businesses to pitch for a share of the grand prize of R55 000 (a blend of cash and business support).
- Kasi Business Exhibition: A local market platform that allows businesses to showcase and sell.
- Masterclass: An In-depth session focusing on the theme of the day, delivering practical business knowledge.
- Mbawula Chat: An intimate conversation with a seasoned Township Economy Champion, profiling a business journey spanning over decades, focused on lessons, resilience and practical wisdom.
- Hacking Networking: A structured and facilitated engagement where entrepreneurs connect, collaborate and work through real business challenges using a social and practical problem solving format.
Event Details:
- Date: Saturday, 25 April 2026
- Time: 09:00am
- Venue: Le’Ashma Lounge, Atteridgeville
- Registration Link (Free): here
- Watch Live Link (Free): here
The “How to Series” will assist businesses in monitoring expenses, protecting profit margins, limiting unnecessary costs and using financial tools to strengthen decision making. The session will also address the importance of separating personal and business finances, introducing simple systems for tracking income and expenditure and building the discipline of forecasting to anticipate challenges and opportunities.