City of Johannesburg’s boss Champions Informal Traders and Digital Innovation to Modernise Township Economy
Economic Development Executive Director, Mr. Mathopane Masha, says the City of Johannesburg continues to place significant focus on the informal sector, particularly the thousands of traders operating across the inner city.
Speaking at the United Nations Development Programme (UNDP) and Wakanda NPC (a non-profit organisation) official launch of the Digital Innovation for Modernising the Independent Economy (DIME) initiative on Monday, Masha emphasised that informal trading should never be interpreted as illegitimate or unprofessional. He said informal trading merely reflects a mode of operation, not a lack of compliance, legitimacy, or professionalism.
“These businesses have a substantial economic footprint, and many are owned by foreign nationals who bring trade, product flow, and commercial linkages across the continent. We recognise and value the contribution they make to our economy,” said Masha.
He noted that while the City serves as a regulator through permits and enforcement measures, regulation must balance order with economic realities.
“When registration opened in Central Johannesburg, the City received more than 4,000 applications, demonstrating the strength and scale of the sector, a great deal of innovation continues to emerge from informal retail environments,” he said.
UN Assistant Secretary-General and Director of the Regional Bureau for Africa, Ahunna Eziakonwa, highlighted that limited access to finance remains one of the biggest challenges facing township retailers, who are often considered high-risk due to limited digital systems and traceable business data. She said the DIME programme is intended to close this gap by introducing digital tools that improve business management, visibility, and competitiveness.
Eziakonwa explained that the initiative emerged in response to tragic incidents late last year, where children died after consuming unsafe food from informal shops. UNDP identified the need to support township retailers to modernise operations, improve compliance, and strengthen food safety practices. To achieve this, the programme includes Sphazamisa an AI-enabled web-based platform that allows traders to onboard digitally, monitor health and safety compliance, and modernise operations using integrated camera systems. Sphazamisa is supported by youth digital ambassadors who serve as on-the-ground support to shop owners, helping them adopt digital tools, navigate compliance processes, and strengthen business operations. The approach not only improves food safety but increases the business visibility required for financial institutions to assess creditworthiness and extend access to funding.
Eziakonwa said the initiative also provides pathways for township youth, who are trained as digital support agents in participating communities. She noted that the programme is anchored in partnership with the City of Johannesburg, as neither UNDP nor Wakanda NPC could achieve sector-wide transformation without government collaboration.
In addition to the programme launch, the delegation conducted an immersion visit in Alexandra township to demonstrate how digital innovation is being applied on the ground. One of the stops included a local spaza shop operated by a trader who rebuilt his business from scratch after returning from incarceration. His journey reflects the resilience of township entrepreneurs who often start with limited resources yet build sustainable businesses serving their communities.
Through platforms like Sphazamisa, traders such as this are gaining visibility, digital support, and compliance guidance addressing shared challenges relating to safety, regulatory understanding, and financial strain. The immersion highlighted how digital tools can meaningfully improve operations for small retailers while enabling stronger support networks, access to services, and a clearer growth pathway for township businesses.
Ends
Issued by the City of Johannesburg
For all media queries, send an email to mediaqueries@joburg.org.za
