Assistance and Market Opportunities for Growing Township Businesses

Johannesburg – A duo of emerging black-owned enterprises has received support to enhance their presence within the local township economy, thanks to an initiative by Tiger Brands designed for business development and market access.

The innovative start-ups, Bloodline and Barcode, have profited from an extensive Enterprise Supplier Development program provided by Tiger Brands, which aims to transform informal businesses into successful, sustainable ventures.

The companies gained market access through a partnership with Tiger Brands to embellish the walls of 50 spaza stores in Tembisa, Alexandra, and Soweto with colorful murals that serve as visually impactful township billboards, showcasing some of South Africa’s renowned brands produced by the company.

“By offering targeted support and market access initiatives, we endeavor to ensure these businesses thrive and make a meaningful contribution to economic transformation,” asserts Maanda Milubi, Enterprise and Supplier Development Director at Tiger Brands.

The South African marketing agency Mega-vision has been brought on board to mentor these smaller firms, aiding them in crafting high-quality wall murals while simultaneously improving their professional capabilities and operational competencies.

“The firms have undergone substantial training in areas such as financial management, client relations, relationship building, and optimizing operational processes,” Milubi notes.

“We have equipped them with digital tools, including laptops, printers, and cameras, to enhance their operational efficiency and overall capabilities.”

The spaza store branding initiative plays a pivotal role in Tiger Brands’ strategy to penetrate the township economy, with the goal of enhancing its visibility and presence across 130,000 targeted general trade outlets over the next five years.

This strategy includes spaza stores, mini- and midi-wholesalers. As of the fiscal year ending 30 September 2024, Tiger Brands had collaborated with 91,000 general trade stores as part of its market outreach efforts.

According to retail research firm Trade Intelligence, over 70% of South African households obtain groceries and other essentials from the informal sector, which makes up approximately 26% of the overall R716 billion South African Fast-Moving Consumer Goods market.

The growth rate of this sector exceeds that of conventional supermarkets.