Empowering Women-Led SMEs: The Tech Revolution Transforming South Africa’s Townships and Rural Economies

By Innovator Trust on 03 Nov 24

Empowering Women-Led SMEs: The Tech Revolution Transforming South Africa’s Townships and Rural Economies

As South Africa pushes towards a more inclusive economy, women-led small and medium enterprises (SMEs) are at the forefront of a tech-driven transformation, particularly in rural and township communities. Home to millions of unemployed individuals, it’s in the township and rural areas that both the greatest challenges and the greatest source of possibility and solutions exist. The adaptability, resilience and deep community connections intrinsic to SMEs, particularly those driven by women, make them powerful catalysts for change.

 

SMEs at the Heart of South Africa's Economic Engine

 

SMEs are the backbone of South Africa’s economy, contributing 40% to the national gross domestic product (GDP), according to the Johannesburg Stock Exchange. Their role is particularly critical as they generate jobs and fuel innovation in areas that larger enterprises often overlook. With nearly half of South Africa's population living in townships, these communities represent a largely untapped market with immense opportunity for SMEs—particularly women-led businesses—to step in and transform the landscape.

 

SA’s Dual Reality – Challenges and Contradictions


Despite being the third-largest economy in Africa and the country called home for 5 of the 18 billionaires on the continent, South Africa is not exempt from contradictions especially when it comes to women. By virtue of simply being women, female entrepreneurs in township economies grapple with compounded challenges; from balancing family responsibilities, and fighting various prejudices against being a woman in tech, with entrepreneurial aspirations, women running township-based tech businesses must also contend with limited infrastructure, low levels of business compliance and limited access to capital and funding support. While South Africa has one of the most progressive financial systems and constitutions in the world, promising equal treatment before the law regardless of race, gender, disability, or sexual orientation - the rife reality of gender-based violence makes safety and security yet another critical challenge to have to contend with as a woman living in South Africa.

 

The Tech-Township Opportunity: Women Entrepreneurs Leading the Charge

 

Despite the multitude of these challenges however, with an increasing shift towards the use of digital platforms in township and rural communities, a unique opportunity for women SMEs exists to drive change that impacts and transforms their lived experience, harnessing digital tools to address local needs, monetising solutions that reshape how underserved communities transact, and integrate technology into township and rural South Africa.

“Women entrepreneurs are increasingly leading the charge in developing tech-driven solutions tailored to the needs of rural and township communities. Their leadership is not only transforming business models but also creating jobs and improving access to essential services in areas that have traditionally been underserved by mainstream economic players,” says Tashline Jooste, CEO of the Innovator Trust, incubator for ICT-focused SMEs. “Over the last decade supporting SMEs, it’s clear that technology is one of the key driver that SMEs need to master and integrate into their offerings in order to thrive within the township economy and beyond.”
 

Incubation: A Lifeline for Women-Led Tech SMEs

 

To sustain and grow this momentum, incubation programs like those run by the Innovator Trust provide essential holistic resources such as mentorship, business training, and networking opportunities that empower women entrepreneurs to grow and succeed in an increasingly digital economy.

 

"At the Innovator Trust, incubation is not about providing handouts or applying a one-size-fits-all approach. We are intentional and holistic in addressing how our ESD incubation support meets the unique needs of women in tech, particularly those in township and rural areas. Without this tailored focus, the chances of driving more women into the tech-SME space are slim," Jooste remarked.

 

“It’s about innovation and resilience. We need to provide women-led SMEs tailored training for low-connectivity rural areas, and visible networking opportunities—to ensure that women-SMEs in townships can access the same resources as those in more developed areas.. Give them what they need to stay afloat long enough for them to water and nurture viable, tech-driven solutions that ultimately end up solving the unique, local challenges of the South African market. This is a marathon, not a sprint exercise.” adds Jooste.

 

The Future of Rural and Township Economies is Digital

 

As digital infrastructure improves and technology becomes more accessible, women-led SMEs are set to play an even more prominent role in driving economic empowerment in South Africa’s rural and township areas. These tech-driven businesses are not only building trust around new technologies, but also helping to foster financial inclusion, create jobs, and uplift entire communities.

 

The future of rural and township economies is digital, and women entrepreneurs are at the helm of this transformation. Through consistent support and the continued expansion of digital solutions, South Africa’s SME sector will be a pivotal contributor in fostering a more active and equitable economy, where the benefits of technology and innovation are shared by all citizens, regardless of where they live.





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