The Township Retail Investment Summit (TRIS) 2024, held at Alex Mall on October 2, underscored the rising importance of township retail as a critical contributor to the country’s economic growth.
The event, hosted by the real estate investment trust Exemplar and sponsored by Nedbank Corporate and Investment Banking (CIB), illustrated how township retail has transformed from an overlooked sector to a vital component of South Africa’s broader economic strategy.
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According to Nedbank CIB, the dynamics of township retail are impressive with strong trading densities, very low vacancy rates, and increasing demands from both national and local tenants seeking space in these shopping centres.
“Exemplar’s township malls, including Alex Mall, are part of a portfolio that has seen 8.9% like-for-like rental income growth. These centres continue to drive foot traffic and act as community hubs, highlighting the sustained demand for physical retail in these areas,” a Nedbank CIB statement said.
The commitment of Nedbank CIB to township retail is significant, having provided more than R32b in current funding to projects in township, rural, and non-metro retail sectors.
This financial backing is crucial in nurturing local economies and facilitating growth.
Nedbank CIB’s property finance divisional executive Vanessa Murray said they are proud to support the TRIS 2024 as it aligns with their core values of promoting inclusive growth and sustainability.
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“Retail in townships is crucial in addressing socioeconomic challenges, and through our funding, we have supported the growth in townships such as Soweto, Alexandra, Tembisa, and Mamelodi. We see huge potential in the township economy and are excited about the opportunities ahead,” Murray said.
Kantar commercial growth director Stacy Saggers said the township economy holds immense untapped potential and it is time for businesses to focus on finding solutions that address the unique challenges in these areas.
“By investing in infrastructure and empowering local communities, we can unlock growth and create meaningful impact where needed most,” Staggers said.
A standout feature of TRIS was the Kasipreneur competition, where innovative township entrepreneurs pitched their business ideas to industry experts.
Winners, including Girl Boss Africa, Moko Originals, and Afro Tribe Hair Studio, showcased the remarkable innovation present within township economies.
The Kasipreneur competition aims to spotlight and support emerging township businesses by giving them visibility and opportunities to connect with potential investors and partners.
Exemplar’s CEO and TRIS co-founder Jason McCormick expressed his enthusiasm for the event’s outcome.
“Retail in township and rural areas has proven its resilience and potential. We are thrilled to see the growing recognition of township retail and the interest from corporate organisations.
“We look forward to seeing this event continue to grow, highlighting the opportunities in this unique and dynamic part of the economy,” McCormick said.
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