Ensuring Support and Market Access for Growing Township Businesses

Johannesburg – A pair of emerging black-owned businesses have received support to expand their footprint within the local township economy, courtesy of Tiger Brands’ initiative aimed at business support and market access.

The creative start-ups, Bloodline and Barcode, have benefited from a comprehensive Enterprise Supplier Development program from Tiger Brands, which focuses on transforming informal businesses into thriving, sustainable operations.

The agencies gained market access through a contract with Tiger Brands to decorate the walls of 50 spaza stores in Tembisa, Alexandra, and Soweto with vibrant murals that act as visually striking township billboards, promoting some of South Africa’s beloved brands produced by the company.

“By offering specialized support and market access programs, we aim to ensure these enterprises flourish and contribute significantly to economic transformation,” states Maanda Milubi, Enterprise and Supplier Development Director at Tiger Brands.

The South African marketing firm Mega-vision has been enlisted to mentor these smaller agencies, assisting them in creating high-caliber wall murals while also enhancing their professional skills and operational capabilities.

“The agencies have received extensive training in areas such as financial management, client relations, relationship building, and optimizing operational processes,” Milubi adds.

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

The spaza store branding initiative forms a crucial part of Tiger Brands’ strategy to penetrate the township economy, aimed at boosting its visibility and presence across 130,000 targeted general trade outlets over the next five years.

This strategy encompasses spaza stores, mini- and midi-wholesalers. As of the fiscal year ending 30 September 2024, Tiger Brands had engaged 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 procure groceries and other essentials from the informal sector, which constitutes approximately 26% of the overall R716 billion South African Fast-Moving Consumer Goods market.

The growth rate of this sector surpasses that of formal supermarkets.