formal trade also provides unique opportunities for partnership and collaboration with fast-moving consumer goods manufacturers and service providers in the formal sector.
Like most emerging markets, South Africa has a large informal business sector, often referred to as the “hidden economy”. As much as 40% of total food bought by consumers each year is from informal traders, who service 77% of the population. Although this channel is constantly confronted with challenges, it is a resilient one, the value of which was estimated to be R157 billion in 2019.
According to a report from Yebo Fresh e-commerce store in collaboration with survey company Ask Afrika: Trade Intelligence aims to enable collaboration and has identified certain areas within the trade and opportunities where suppliers, services providers and traders can work together to enable development within this largely untapped market:Although customers enjoy the consistency of leading brands, shrinking wallets have forced them to consider alternative products.
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