How to Build a Kasi-Focused Startup

If you’re battling to strategise a way into SA’s R425bn kasi economy, you have to check out this week’s podcast episode. There’s no guest, just our team deep-diving into how you could build a business that serves and taps into the existing township market.

It’s a quick 30 minutes with some gold insights…

Just the highlights

1. Formalised housing on the horizon
2. With PPC Cement saying their biggest Cape Town market is people upscaling from shacks to built property in city townships, the City Council says it’s looking into enabling residents to do this with pre-approved set plans.
3. This will be a big deal because it creates registered housing, which in turn will require data, unlocking a host of tech opportunities that just weren’t there before – get the scoop here.
4. Back-room rentals are bigger than you think
5. It’s not just a South African township thing, as Renier mentions here, the Irish government has started giving people tax breaks for building extra rooms onto their homes to rent out.
6. This can be a kasi game-changer, as more people get income-generating property, creating a need for smart property management systems and software.
7. Commercial property is not just for corporates
8. A bit of further research shows that, in a township setting, commercial property for rent can be as simple as a resident opening their current prime-situated residence up, and hiring an assistant to run it as a spaza shop or other business.
9. As mentioned here, founders should take note because while the barriers to entry into traditional PropTech are steep, this “informal” sector has massive scale, and the need for smart tech to manage property is just as important (not to mention none of the big guys are looking that way, yet).
10. Formalising the informal economy is a big opportunity
11. As mentioned here, an ideal entrepreneurial environment supports people doing and scaling business. But it’s hard for government to invest in townships because all this transacting is going on in an informal space.
    Now, you don’t want to go in and tax everyone, ‘cos that’ll kill it or force it elsewhere, but finding smart ways to bring some formality to the informal economy is the key to unlocking even more opportunities in SA’s townships.
12. And, honestly, tech seems the only way to do this effectively and at scale.

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