The City of Johannesburg continues to prioritise the informal sector, recognising its vital role in the local economy. Economic Development Executive Director Mathopane Masha highlighted this commitment at the launch of the UNDP and Wakanda NPC’s Digital Innovation for Modernising the Independent Economy (DIME) initiative.
Masha stressed that informal trading must not be viewed as illegitimate or unprofessional. “These businesses have a substantial economic footprint, and many are owned by foreign nationals who bring trade, product flow, and commercial linkages across the continent. We recognise and value the contribution they make to our economy,” he said.
He added that while the City regulates through permits and enforcement, regulation must balance order with economic realities. Over 4 000 applications were received during central Johannesburg’s recent trader registration period, signalling the strength and scale of the sector.
UN Assistant Secretary-General Ahunna Eziakonwa said limited access to finance remains a major challenge for township retailers, often due to limited digital systems and business data. She explained that the DIME programme aims to close this gap by introducing digital tools that improve management, visibility and competitiveness.
A key component is Sphazamisa, an AI-enabled web platform that helps traders onboard digitally, track health and safety compliance, and modernise operations using integrated camera systems. Youth digital ambassadors assist traders on the ground, helping them adopt technology and strengthen operations. This improves food safety while giving retailers greater visibility for credit assessments and access to finance.
The delegation also visited Alexandra township to see the tools in action, including a spaza shop rebuilt by a trader after incarceration—an example of the resilience within township economies. The visit demonstrated how digital innovation can improve safety, support compliance, and create clearer growth pathways for small businesses.
Written by Zingiswa Mndayi