Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Why South Africa is turning its back on 'screwdriver' car plants - Parks Tau

      Why South Africa is turning its back on ‘screwdriver’ car plants

      15 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      Armoured cars and cyber cover: the new executive perks in South Africa

      Armoured cars and cyber cover: the new executive perks in South Africa

      15 October 2026
      Your car's ADAS may be seeing skew

      Your car’s ADAS may be seeing skew

      15 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • World
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
      The AI PC is finally here. It's just very expensive - Jensen Huang, Satya Nadella

      The AI PC is finally here. It’s just very expensive

      8 October 2026
      The memory crunch is making Samsung fabulously rich

      The memory crunch is making Samsung fabulously rich

      8 October 2026
      SpaceX to borrow $40-billion to buy Nvidia chips

      SpaceX to borrow $40-billion to buy Nvidia chips

      7 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Retail and e-commerce » How to succeed in township e-commerce
    Bob Group MD Andy Higgins

    How to succeed in township e-commerce

    By Andy Higgins30 October 2024

    Research by retail analyst Trade Intelligence earlier this year indicated that township trade brings in about R200-billion annually.

    This is a staggering figure considering that high unemployment rates, poverty and crime blight South Africa’s townships. Moreover, e-commerce is growing rapidly in townships and informal settlements, with the 2023 Township CX Report finding that 60% of survey respondents either sell products and services online or know someone who does.

    That said, township e-commerce still faces many challenges, primarily infrastructural.

    Security concerns can be alleviated by limiting distribution to more secure locations using a pickup point network

    In township economies, the consumers range from informal traders and small business owners to everyday individuals looking for affordable goods and services.

    Many of these consumers face financial constraints and limited access to digital infrastructure, so e-commerce platforms must prioritise affordability, ease of use and trust. Some of the biggest obstacles e-commerce businesses face in township economies are limited internet access, lack of trust in digital payments, security and logistical challenges.

    Platforms should offer:

    • A wider variety of products not currently available in local townships. They should also provide goods at more competitive pricing.
    • Mobile-friendly interfaces that cater to users relying on low-cost smartphones.
    • Flexible payment options.
    • Affordable delivery solutions such as pickup points or courier aggregators that lower logistics costs.

    Businesses should consider low-data platforms that function well even with minimal internet connectivity. These platforms allow users to shop and complete transactions without heavy data costs.

    Another solution is integrating mobile money platforms and educating people on using them.

    Digital literacy campaigns are essential. Partnering with educational institutions, government bodies or community centres to run workshops on e-commerce, digital payments and basic digital skills will help bridge the digital literacy gap. Local distribution channels should be used to minimise delivery costs.

    Nuances

    Regarding affordable delivery solutions, partnerships with local couriers or logistics services that understand the nuances of township delivery can be a gamechanger for township businesses. In addition, pickup points can overcome the lack of formalised addresses in these areas.

    Likewise, security concerns can be alleviated by limiting distribution to more secure locations using a pickup point network.

    Read: Naspers boss says group to ‘reimagine e-commerce’ through AI

    A further aspect to consider is leveraging online/offline hybrid models, where customers can order online but pay or collect in person, bridging the digital divide.

    Timing is critical for e-commerce entrepreneurs when expanding into township economies. They need to assess demand using data-driven insights to evaluate consumer interest in the products or services offered. They also need to ensure that digital and physical infrastructure can support their e-commerce operations.

    Image: Midjourney

    Look into mobile penetration and payment method adoption rates. Expanding too soon without considering these factors could lead to a high failure rate. This can be achieved by piggybacking off service providers already established in the township economy.

    There are various channels for entrepreneurs in township economies to find support to establish their e-commerce platforms.

    These include:

    • Government initiatives like small business grants, digital skills training and broadband expansion projects;
    • Private sector partnerships, especially with telecommunications and payment providers;
    • Community-driven programmes that offer mentorship, resources and access to e-commerce tools; and
    • Collaborating with NGOs that have a deep understanding of local needs.

    Get breaking news from TechCentral on WhatsApp. Sign up here

    • The author, Andy Higgins, is MD of Bob Group

    Don’t miss:

    South Africa needs the Post Office, e-commerce pioneer says

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Andy Higgins Bob Group
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDomains.co.za introduces South Africa’s first AI domain name generator
    Next Article Microsoft security: know your business, know your data

    Related Posts

    Bob Group MD Andy Higgins

    Andy Higgins to move into new role at Bob Group

    5 March 2026
    Malatsi buries Post Office's long-dead monopoly

    Malatsi buries Post Office monopoly the market ignored

    18 December 2025
    Woolworths and Takealot eat up Black Friday spoils

    Woolworths and Takealot eat up Black Friday spoils

    2 December 2024
    Company News
    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    15 October 2026
    Data sovereignty in South Africa is not an address - Ascent Technology, Johan Lamberts

    Data sovereignty in South Africa is not an address

    15 October 2026
    AI is only as good as your asset data

    AI is only as good as your asset data

    14 October 2026
    Opinion
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Why South Africa is turning its back on 'screwdriver' car plants - Parks Tau

    Why South Africa is turning its back on ‘screwdriver’ car plants

    15 October 2026
    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    15 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026
    Armoured cars and cyber cover: the new executive perks in South Africa

    Armoured cars and cyber cover: the new executive perks in South Africa

    15 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter