DTIC Pushes Township Economy Transformation

Deputy Minister of Trade, Industry and Competition Zuko Godlimpi speaking at the launch of the 2026 Rural and Township Economy Report in Johannesburg. Image supplied.

Township and rural businesses continue to face significant barriers to growth, including high procurement costs, limited market access, and regulatory hurdles, Deputy Minister of Trade, Industry and Competition Zuko Godlimpi stated..

Speaking at the launch of the 2026 Rural and Township Economy Report in Johannesburg, Godlimpi said addressing these challenges is crucial to South Africa’s spatial transformation and economic inclusion.

He said informal businesses often struggle to access formal distribution channels, and face higher prices when procuring goods, while consumers in townships and rural areas are affected by limited product variety and quality.

“Consumers in townships and rural areas face higher effective prices due to limited product variety and quality,” Godlimpi said.

He highlighted high rental costs, exclusivity arrangements, and strong preferences for national brands as some of the factors preventing township businesses from competing effectively in the retail sector.

Godlimpi also pointed to regulatory barriers, including permits and tax compliance as obstacles to business formalisation, while weak infrastructure and non-compliance limit participation in e-commerce.

He said the decline of general dealers in rural villages was another concern, with only a few remaining in some areas.

Godlimpi stressed that the government’s objective should be to address structural economic challenges beyond metropolitan areas, and ensure that rural and township enterprises can participate meaningfully in the economy.

He said better supply chain management, stock availability, and point-of-sale technology could help local businesses improve competitiveness and customer experience.

“The task before us is therefore not simply to grow the economy. We must transform the economy while growing it,” he said.

Godlimpi added that industrial and competition policies must work together to create opportunities for new and transformed businesses to enter markets, grow, and compete.