UNDP SA LAUNCHES DIME TO MODERNISE SA’S INDEPENDENT ECONOMY

Unlocking Township Growth through Digital Innovation, Inclusion, and Industrialisation

The United Nations Development Programme (UNDP) in South Africa, in partnership with the City of Johannesburg and Wakanda NPC, today announced the launch of the Digital Innovation for Modernising the Independent Economy (DIME), a pioneering initiative transforming township economy through digital tools, improved food safety standards, and financial inclusion.

Developed in response to the 2024 foodborne illness outbreaks, DIME introduces a new generation of digital public infrastructure for township economies. Anchored by the Sphazamisa App, the platform integrates digital identity, food safety routines, traceability, stock management, and e-payment functionalities into one seamless interface. This ecosystem is designed to make township retailers safer, more resilient, and fully visible within South Africa’s evolving digital economy.

The first phase of DIME is now rolling out across Gauteng, offering township enterprises the tools and support systems needed to transition from traditional operations to a digitally enabled, finance-ready model.

Aligned with G20 commitments on inclusive digital transformation, youth employment, and resilient food systems, DIME reframes the so-called “informal economy” as the Independent Economy – a legitimate, dynamic, and essential part of South Africa’s growth story.

UNDP South Africa Resident Representative and Director of the Africa Sustainable Finance Hub, Mr Maxwell Gomera, explains:

“Township entrepreneurs have built a R1 trillion economy – not despite the system, but often without it. DIME is our response to that reality. We’re not asking people to fit into frameworks never designed for them. We’re building new systems that recognise the independent economy for what it is: innovative, resilient, and investable. This isn’t charity—it’s economic strategy. And here is the simple truth: when township enterprises grow with dignity and support, South Africa grows.”

A New Model for Township Modernisation

1. Digital Transformation of Spaza Shops

Through the Sphazamisa App, participating retailers receive a digital identity linked to the City of Johannesburg’s business registry. IoT-enabled tools – including QR/NFC scanners – support food safety monitoring, inspection readiness, and real-time traceability. These insights feed into a municipal dashboard that strengthens early-warning systems and improves public health oversight.

2. Capacity Building and Local Empowerment

DIME is creating a community-led digital transformation movement. A network of youth Digital Ambassadors, with a deliberate focus on women’s participation, supports retailers in adopting new tools, improving business practices, and ensuring long-term sustainability. Tailored training enhances digital literacy, enterprise management, and health and safety skills for shop owners and workers.

3. Financial Inclusion and Market Integration

By collaborating with fintech partners and wholesale suppliers, DIME ensures that digitally compliant shops can access secure payments, structured supply chains, and pathways to credit. Financial literacy clinics further equip enterprises to manage electronic transactions, build credit histories, and expand their operations.

4. Multi-Stakeholder Governance for Long-Term Sustainability

DIME is built on strong coordination between public institutions, private innovators, and community actors. Regular dialogues, co-design sessions, and capacity-building efforts support policy alignment and long-term institutional ownership.

Why This Matters

South Africa’s township retail ecosystem sustains millions of livelihoods but faces persistent barriers: limited digital visibility, weak access to finance, and fragmented compliance systems. DIME directly responds to these challenges by:

• Strengthening public health and food safety systems
• Making township retailers visible, creditworthy, and investment-ready
• Creating scalable youth employment opportunities
• Positioning South Africa as a continental leader in inclusive digital public infrastructure

“Wakanda has always stood for possibility; the belief that innovation rooted in community can transform entire nations. The Sphazamisa App carries that spirit. It shows that when township entrepreneurs are equipped with smart, accessible digital tools, they don’t just comply with standards – they redefine what excellence looks like. This is how we build an economy where the next breakthrough doesn’t come from the usual places, but from the streets that have always carried our ambition.” Miles Khubeka, CEO – Wakanda Food Accelerator. 

DIME offers a nationally scalable blueprint for modernising the Independent Economy by ensuring township enterprises are not just surviving but thriving in the digital era.

“The City recognises the creative nature of the township economy. Whilst the City regulates the local economy, the intention is to enable than stifle. Regulation is about creating safe trading spaces, it’s about unravelling the invisible economy, it’s about unlocking value for small businesses. At the confluence of township entrepreneurship and digital innovation, growth explodes. As the City we are gearing for innovation, inclusion and impact.” Mr. Mathopane Masha, Executive Director: Department of Economic Development, City of Johannesburg.

For partnership enquiries, contact communications.za@undp.org 

For interview requests, please contact Ntokozo Mahlangu (UNDP Head of Communications) 060 533 6760 | ntokozo.mahlangu@undp.org