There’s no shortage of economic activity happening in township streets, backyards and houses: there are spaza shops on every corner, metal fabricators spilling sparks out of garages, hair-braiding on the sidewalk and a shisanyama – and a beer – are never far away.

Despite this apparent dynamism, however, most economic activity in townships is trapped within a narrow band of informal activities. The returns are often low and so are the employment multipliers. The single biggest category of activity is retail, made up mainly of street-traders, spazas and shebeens: many operating from homes on a very small scale.

Hardware and building supply stores can, however, also be found.

Township Economies Series – is produced by the Cities Support Programme of National Treasury and explores strategies for township economic development. The first in the series is focused on the factors that constrain such development – and considerations for the development of strategy