OpinionPREMIUM

GUGU LOURIE: Banking on townships to rival e-giants

Spaza Eats is proving that young black entrepreneurs have the creativity, drive and vision to compete with the best and win

Picture: 123RF/DCODEGONI
Picture: 123RF/DCODEGONI

In his book Not Impossible: The Art and Joy of Doing What Couldn’t Be Done, Mick Ebeling writes: “I mean, who are we to think anything is impossible? We evolved from primates who couldn’t imagine what lay before them. There was a time when the printing press was inconceivable, circumnavigating the globe unthinkable, the steam engine unimaginable.”

Ebeling’s words echoed in my mind as I sat down with Talifhani Banks, a man who exemplifies the spirit of defying the impossible.

Banks hails from Makhado in Limpopo. He is a visionary entrepreneur determined to upend the township economy with his innovative food delivery platform, Spaza Eats.

Unlike the typical CEO who enjoys a luxurious salary or political connections, Banks is an ordinary man with extraordinary ambition. His mission is simple but powerful: to empower townships by transforming the food and e-commerce industry, meal by meal.

In July 2023, Banks founded Spaza Eats through his company Analytics X. His background in Statistics and Econometrics, combined with years of experience in retail, enabled him to see a gap in the market.

Most delivery services avoided townships due to perceived crime risks, leaving these areas neglected and economically disconnected.

“The township has always been excluded from the formal economy,” Banks notes. “But not because there isn’t economics happening there — it’s because the people running these organisations are not from the township.”

Banks said he saw an opportunity to change the situation. He envisioned a platform that connects local spaza shops, small-scale farmers and local cuisine stores directly to the communities. His plan was to create an ecosystem that would revolutionise township

e-commerce, starting with food delivery.

While competitors like Mr D, Uber Eats, Checkers Sixty60 and Pick n Pay’s Asap dominate the food delivery landscape, Banks is undeterred. Spaza Eats has attracted more than 60,000 customers and 4,500 merchants in its first 14 months — an astonishing feat given the challenges of operating in underserved areas.

Spaza shops in townships have always been underrated. “They feed so many families, but we aim to create a process where spazas can be fully integrated into the digital ecosystem of the township.”

What sets Spaza Eats apart is its ability to cater to the unique needs of township residents. From food delivery to solar panels, cellphones and groceries, the platform has become a one-stop shop for township dwellers. The success of Spaza Eats showcases the viability of the township economy and proves that entrepreneurs with vision can serve such communities and be profitable.

To target this underserved area is not madness. I believe South Africa needs young people, especially black entrepreneurs, to dream big and become part of the mainstream economy

Spaza Eats isn’t just about delivery services. Banks’ vision has expanded to include Spaza Eats Market, a marketplace that facilitates trade between restaurants, farmers and retailers.

With strategic partnerships in place — including with BP Express and the National Agricultural Marketing Council — Banks is positioning his platform as a key player in large-scale distribution.

“We are onboarding the best suppliers in Spaza Market, including Ultra Link, Skyworth, Apple, Samsung, Huawei and many more.” This positions Spaza Eats Market to become a significant player in both local and international markets.

The logistics behind this expansion are impressive. The platform now employs 1,105 independent bike riders and seven full-time riders, ensuring deliveries reach even the most remote parts of the townships.

The business has also partnered with Bolt to fulfil orders in areas where demand exceeds supply, allowing Spaza Eats to maintain a growing footprint across South Africa. It is now in Gauteng, Cape Town, Limpopo, Durban, Rustenburg, East London and Mbombela. There are plans to expand into every small town in South Africa.

Banks’ vision extends far beyond South Africa’s borders. “We plan to be in every small town in South Africa by June 2025,” he says, adding, “and then scale to Rwanda, Kenya, DRC and Lagos.”

His ambitions may seem audacious, but Banks is adamant that the future of e-commerce lies in the township economy — a market historically ignored by larger corporations.

To target this underserved area is not madness. I believe South Africa needs young people, especially black entrepreneurs, to dream big and become part of the mainstream economy.

The Spaza Eats team recently received certification to store customer bank cards on the app, signalling a move towards becoming a fully fledged merchant bank. This feature will simplify transactions for customers and facilitate smoother payments to merchants.

“Who knows, we might become a transactional bank called ‘Spaza Pay’ in the future,” Banks muses, hinting at the possibility of turning the business into more than just a delivery service.

Other township delivery platforms — like Delivery Ka Speed supported by Telkom and KasiD backed by MultiChoice — are also making strides.

Yet the competition isn’t limited to the townships. His platform is beginning to attract customers outside the townships, bringing local cuisine and community-driven commerce into more-affluent areas. “We’re seeing a trend of orders from places like Alex to Sandton,” Banks observes.

In an industry dominated by corporate giants, Banks is betting on the township economy to carve out a significant niche.

Spaza Eats is proving that young black entrepreneurs have the creativity, drive and vision to compete with the best and win.

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