Unlocking SA’s entrepreneurial potential
Alison Collier, CEO, Endeavor SA joins CNBC Africa’s Zanele Morrison for this discussion.
Fri, 22 Sep 2023 11:44:14 GMT
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AI Generated Summary
- The township economy is a significant driver of job creation and economic growth in South Africa, with tech businesses playing a vital role in addressing mass market problems and expanding into new markets across Africa.
- The digitalization through mobile phones has empowered entrepreneurs in townships to offer cost-effective financial services, with a focus on payment solutions, banking services, insurance products, and security services.
- Partnerships between companies like Halo Group and Aura are revolutionizing the security services sector in townships, providing rapid response systems to enhance safety and security for businesses and communities.
South Africa's township economy is emerging as a powerhouse of innovation and job creation, with tech businesses at the forefront of this growth. In a recent interview with CNBC Africa, Alison Collier, CEO of Endeavor SA, discussed the untapped potential of the township economy and the remarkable impact it is having on the country's economic landscape. Collier highlighted the extraordinary growth of tech businesses in townships and their expansion into other markets across Africa, addressing mass market problems and serving as a lifeline for millions of people. One of the key drivers of this growth is the digitalization happening through mobile phones, enabling entrepreneurs to provide cost-effective financial services to lower income segments. Fintechs and delivery businesses are on the rise in townships, offering payment solutions, banking services, insurance products, and security services like Aura's rapid response system. Partnerships between companies like Halo Group and Aura are revolutionizing the way security services are accessed, providing a vital lifeline for township businesses and communities. The success of businesses like Time Bank, serving 7 million customers with affordable banking products, underscores the demand for accessible and low-cost financial services in the market. Alison also emphasized the role of mobile phone penetration and reduced data costs in driving the uptake of digital transactions among mass market consumers. The ease of doing business digitally has significantly reduced transaction costs and enabled entrepreneurs to capitalize on emerging opportunities. Gender equity is also on the rise in the township economy, with a significant portion of jobs created in tech-enabled businesses going to black South African youth, with a strong representation of female employees. The revenue growth and job creation rates in these businesses reflect the potential of the township economy to drive economic growth and provide much-needed employment opportunities for the youth of South Africa.
