From Informal to Influential: SPAR, KasiD and the Truth About the Township Economy
When people talk about ‘the township economy’, there’s always someone who raises an eyebrow. “Is it really an economy?”
According to Freddy Mahhumane, co-founder and CEO of KasiD and guest on the Township Marketing Podcast (TMP) brought to you by Rogerwilco, the answer is simple:
“Of course it is.”
Think about it. Townships produce innovation, jobs and services that move money every single day. From the vetkoek stand feeding hundreds, to delivery riders weaving through narrow streets, to tech solutions built in kasi garages, that’s economic activity in motion. Not on the sidelines, not secondary. Central. Critical. Alive.
Freddy goes even further: it’s not a “township economy”.
It’s the main market.
Because township communities buy, sell, hustle and scale at a level that powers South Africa’s real grassroots economy.
From ‘informal’ to insightful
Blake Raubenheimer, SPAR’s Omnichannel Executive, agrees. He says it’s ironic that we call the township economy ‘informal’ when it’s one of the most organised systems around. From street vendors to local delivery riders, there’s an invisible but efficient order at play. Everyone knows who runs what, where to get it and who to trust.
So when SPAR decided to expand grocery delivery through SPAR2U, they didn’t swoop in with a top-down approach. They partnered with township-grown platforms like KasiD and Delivery Ka Speed, who already understood the rhythm of the market. The goal wasn’t to ‘teach’ the township about e-commerce; it was to build together.
Trust and technology
Let’s be honest. Doing business in townships takes more than just a sleek app. It takes trust, the kind that’s built through familiar faces and local voices. Freddy points out that hiring from within the community wasn’t just good PR. It built safety, reliability and pride.
“When you see someone from your area delivering your groceries, it changes the whole relationship,” he says.
And while suburban e-commerce might worry about ‘address accuracy’, KasiD drivers know every landmark, shortcut and street nickname. They understand that “house 36” might show up as “16” on the GPS and they’ve learned to confirm before knocking. That’s local intelligence you can’t teach in a corporate training manual.
Learning by listening
For Blake, the success of SPAR2U’s township rollout came down to one key principle: listen before you act. Each township is unique with its own distinct language, community leaders and customer habits.
“There’s no cookie-cutter approach,” he says. “You have to engage with the community, learn its nuances and adapt your model.”
It’s why SPAR treats each area, from Thembisa to Soshanguve, as unique. Some rely more on month-end bulk buying, others on daily top-ups. Some need pickup points instead of direct delivery. It’s all about meeting people where they are, not forcing them into a one-size-fits-all solution.
Watch the full Township Marketing Podcast episode
Watch the full episode below to hear Freddy and Blake unpack the evolution of township e-commerce, the power of community-led delivery and why township markets hold the key to South Africa’s retail future.
Subscribe to the Township Marketing Podcast (TMP)
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