Black Friday a gateway to growth and digital transformation for township SMMEs
Economy
Once viewed primarily as a single-day sales event, Black Friday has now stretched into what many call “Black November”, offering SMMEs extended lead time to prepare stock, manage cash flow, and meet soaring customer demand ahead of the festive rush.
Image: Freepik
AS Black Friday 2025 approaches, South Africa’s small, medium, and micro enterprises (SMMEs) — particularly those rooted in townships — are seeing more than just a shopping frenzy.
For them, this high-stakes retail moment has evolved into a powerful catalyst for operational resilience, digital adoption, and long-term growth.
Once viewed primarily as a single-day sales event, Black Friday has now stretched into what many call “Black November”, offering SMMEs extended lead time to prepare stock, manage cash flow, and meet soaring customer demand ahead of the festive rush.
This shift is not just about revenue; it’s a real-time stress test that reveals which businesses are ready to compete in a rapidly digitising economy.
Success hinges on several factors: Maintaining strong liquidity to bridge payments to suppliers and incoming customer receipts, ensuring accurate inventory amid a 30% surge in online sales seen in 2024, and delivering seamless customer service across both physical and digital channels.
“This period acts as a stress test, highlighting the importance of preparedness and adaptability for SMEs competing in both local and global markets,” according to Norman Nyawo, head of merchant solutions for business and commercial banking at Standard Bank South Africa (and acting head for Merchant Solutions at BCB Africa Regions & Offshore)
“This evolution of Black Friday has also reshaped payment behaviour. Consumers are increasingly moving from traditional card payments to e‑commerce and mobile transactions, with mobile commerce now representing more than 67% of Black Friday transactions,” he said.
The transformation is most pronounced in South Africa’s informal economy, which contributes an estimated R900 billion annually and supports roughly one in four South Africans.
Historically reliant on cash, township traders are now rapidly embracing digital payment tools — fueled by accessible fintech platforms that consolidate card, online, and mobile transactions into a single, omnichannel experience.
“Perhaps the most exciting development catalysed by this digital retail shift is the accelerated adoption of digital payment methods within South Africa’s informal market, particularly in townships and peri-urban areas,” Nyawo said. “South Africa's prepaid-card and digital-wallet market is projected to grow from $11.8bn (R202bn) in 2024 to $21.2bn by 2029.”
This move toward digital is not just about convenience, it is about formalisation and opportunity. When transactions shift from cash to digital rails, informal businesses gain visibility into their sales history, making them eligible for credit. They also reduce the risks associated with handling cash and gain the ability to plug into the broader e‑commerce ecosystem.
“Digital payments are not just about convenience,” Nyawo said. “They are about helping township businesses operate more securely and efficiently, especially during intense trading windows like Black Friday and the festive season. By embracing digital tools, township SMMEs can build resilience, unlock access to credit, and position themselves for sustainable growth.”
With the right mix of liquidity support, inventory management, and digital infrastructure, township entrepreneurs are no longer just surviving Black Friday — they are using it as a springboard to reshape their futures.