Massive Growth Opportunity for Township SMEs

Black Friday 2025, ahead of the festive season, is more than a day of discounts, it is a powerful driver of growth and transformation for South Africa’s Small and Medium Enterprises (SMEs) and township businesses. For SMEs and the informal market, Black Friday represents more than just a spike in revenue, it is that defining moment that demands adaptability,

Over the years, Standard Bank has observed a double‑digit growth in the South African consumer spending across categories such as groceries, clothing, home repairs, and travel. This surge highlights how the shopping frenzy has expanded into “Black November,” giving SMEs and township traders more time to manage stock, strengthen cash flow, and meet customer demand, ultimately positioning themselves for sustained festive‑season success.

For township SMEs, Black Friday is more than a sales event, it is a catalyst for growth and a real‑time indicator of operational resilience.

Success depends on:

• Liquidity management, ensuring businesses can bridge supplier payments and customer receipts.
• Stock accuracy and logistics, critical as online sales surged by over 30% in 2024.
• Customer service under pressure, maintaining seamless experiences across physical and digital channels.

For Norman Nyawo, the Head of Merchant Solutions for Business and Commercial Banking at Standard Bank South Africa and Africa Regions & Offshore (acting), “This period acts as a stress test, highlighting the importance of preparedness and adaptability for SMEs competing in both local and global markets. This evolution of Black Friday has also reshaped payment behaviour. Consumers are increasingly moving from traditional card payments to e‑commerce and mobile transactions, with mobile commerce now representing more than 67% of Black Friday transactions.”

Platforms like SimplyBLU are enabling SMEs to merge card and e‑commerce payments into a single omnichannel experience. This unified approach provides businesses with a consolidated view of customers and inventory, ensuring they remain competitive in a fast‑digitising retail environment.

Nyawo adds: “Perhaps the most exciting development catalysed by this digital retail shift is the accelerated adoption of digital payment methods within South Africa’s informal market particularly in townships and peri-urban areas. This informal economy, valued at an estimated R900 billion annually, supports the livelihoods of up to one in four South Africans. While historically cash-dominant, the rise of affordable, accessible fintech solutions is driving a dramatic change. South Africa’s prepaid-card and digital-wallet market is projected to grow from $11.8 billion in 2024 to $21.2 billion by 2029.”

Occasions such as Black Friday and the festive season are accelerating digital payment adoption in this sector. This surge is not just about convenience; it is about formalisation. By moving transactions from cash to digital, informal traders gain:

• Transaction visibility for access to credit.
• Greater security by reducing cash handling risks.
• Integration: the ability to participate in the broader e‑commerce ecosystem.

“Digital payments are not just about convenience, they are about helping township businesses operate more securely and efficiently, especially during intense trading windows like Black Friday and the festive season. By embracing digital tools, township SMEs can build resilience, unlock access to credit, and position themselves for sustainable growth,” emphasizes Nyawo.

Equipping SMEs and informal traders with the right tools to thrive during this transformative period, from liquidity solutions to omnichannel merchant platforms this enables businesses to seize opportunities presented by Black Friday, the festive season, and beyond.