A suggestion on how to spend R500 million in the kasi

Posted by Admin (JS) on 17 September 2026, 13:20 SAST

BY JANICE SCHECKTER, FOUNDER AND CEO, KASIKONNECT

Giving a spaza shop a cash grant to restock is an exercise in futility. It doesn't build the township economy; it simply subsidizes its exit. That money stays in the Kasi for all of two hours before leaking straight back to external FMCG corporate giants.
If we want a real return on this R500 million investment, we must dig past the physical symptoms and fix the foundational crises: the asymmetry of buying power, ecosystem isolation, and a total data deficit.

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Hyperlocalising the Value Chain: The Multiplier Effect in Township Economies

Posted by Admin (JS) on 11 December 2025, 16:45 SAST

The structural legacy of South African townships as "dormitory towns"—labour reserves with limited internal economic logic—has created a persistent phenomenon of economic leakage.1 Income generated by township residents is predominantly spent on goods manufactured and retailed by entities outside the township, resulting in a net capital outflow. This article argues that the "SPAZA Supply+" model, by establishing a closed-loop, hyperlocal supply chain, serves as a mechanism for Township Import Substitution. By integrating local manufacturing, logistics, and retail (spaza shops), the model plugs economic leaks, accelerates the local multiplier effect, and fosters endogenous community development.

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