Why Business Models Fail in the Township Economy

 

I saw this quote on X: "Forget climbing the corporate ladder, the most valuable skill of the future is building something of your own."

My first thought? Educational content, subscriptions, consulting. Then reality hit me: none of that works where I live—in black communities where the average person is unemployed, doesn't own a personal computer, goes through 5+ stages to get married, doesn't read, thinks politics is culture¹ and is steeped in traditional dogma.

The Reality We're Ignoring

When poverty is the common denominator, you can't grow via subscription fees or selling habit trackers.

You can't "coach" anyone because they are saving up for their aunt's 4th stage of marriage in 4 months, which will cost the family over R40,000. (A cow for the community, free food and expensive dresses). You can't grow in consulting, because your target market doesn't own any business that needs problem solving or expert advice.

What is the typical picture of black communities? This: 60% unemployment⁴ , drug abuse, teenage pregnancy, a cycle of traditional events, and taxi violence.

What Might Actually Work

What ideas might work in these conditions? First, anything that directly lowers the 60% unemployment rate.

If I'm trying to make money out of black communities, I'm destined to fail. Unless I'm selling drugs or own a nightclub. A better approach is building a regenerative model I can advertise to corporate or government funders — one that creates jobs and restores dignity.

So what actually creates jobs in communities such as these?

There’s a lot: cleaning cooperatives, recycling projects, delivery services, construction, plumbing, repair technicians, solar energy technicians, data collection, and tutoring programs³.

In my country, this is where I can grow and be profitable. It's harder, steeper, and more uncertain, but I'll share an encouraging passage from Lord of the Rings, novel by J.R.R Tolkien:

Frodo: "I wish it need not have happened in my time."

Gandalf: "So do I, and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us."

In South Africa, this is our time — and our decision.

Notes:

1. The reference to “politics as culture” was meant to suggest that many people treat politics as something to follow loyally, like religion, rather than as a democratic practice grounded in competence, care, and lawfulness.

2. My initial thoughts on “building something of my own” also leaned toward investing, day trading, and creative projects like podcasting — but these are 1% domains.

3. Tutoring programs could be designed through partnerships with schools, universities, and companies that want to upskill their employees in specific areas.

4. The 60% unemployment rate mentioned here is based on Google Search data and refers primarily to black townships in South Africa.

5. IDC 1 min video: Bhavanesh — I truly admire the efforts of the Industrial Development Corporation (IDC) for their Social Employment Fund (SEF).
   I also echo the words of Bhavanesh Parbhoo, SEF Project Manager, who says:

   “The mandate of the IDC programme is to stimulate real job creation, support micro-enterprises, and promote soft industrialization — providing technical skills and enabling individuals to create their own pathways out of poverty and unemployment.” 

Author: Samkelo Madlala, DUCT Rivers Project Coordinator