contribution to South Africa’s GDP, the informal sector is one of the most important parts of the entire economy, both as a means of employment and how millions of people obtain goods and services. This sector is also severely under-digitized and trade is still highly dependent on cash.
Financial inclusion is one of the main priorities of the South African Reserve Bank’s Vision 2025. Electronic, digital, and mobile payments are highlighted as critical elements of financial services in the coming years. “Digital alternatives to cash need to be able to offer the same features and benefits to gain traction in the informal economy. There is ample opportunity for mobile transactions to become completely trusted, simple to use, easily understood as well as immediate, and affordable with no hidden fees,” says Miya.
He mentions that, while there are numerous challenges facing township communities, a number of fledgling businesses are making their mark such as local fashion brands, food delivery alternatives, together with entrepreneurial barbers, beauticians and even services like internet cafes and laundromats.