Tag: InformalEconomy

For years, a familiar narrative has shaped our understanding of South African consumers. It suggests they are over-indebted, under-saving and prone to conspicuous consumption. Statistics often reinforce this view. These include low household savings rates, rising unsecured lending and high levels of personal debt. On the surface, the conclusion seems obvious. However, it remains incomplete.

Standard Bank’s latest Township Informal Economy Report reveals that eight out of ten township traders are not registered. From our work with entrepreneurs, this reflects deeper barriers - not just administrative, but psychological and structural - that keep many businesses trapped in informality.