Data revolutionizes market insights and economic planning of South Africa’s townships

In ground-breaking research, Bob Currin showcased GeoScope South Africa’s work on capturing and using data on South Africa’s townships. More than 30 years ago the research was done on the first Township Atlas using typewriters and manual updates. Now using innovative technologies, the data collection process has been revolutionized, enabling it to have a profound impact on businesses decision-making and policy-making.

Accessing data at the most granular level is important for clients and has led to the development of comprehensive datasets covering various aspects of township life. These datasets include demographic estimates, Living Standard Measures (LSM), income data and crime statistics that make up an atlas of townships in South Africa. By continuously updating and refining these datasets, GeoScope ensures that decision-makers have accurate and up-to-date information at their fingertips.

This allows detailed spatial data analysis to be done, which plays a vital role in understanding the complex interrelationship between supply, demand, accessibility, and consumption patterns in townships. Using nationally representative surveys such as the Marketing All Products Survey (MAPS) and the General Household Survey (GHS) with machine learning algoritms, GeoScope has been able to map and model data to provide valuable insights into consumer behavior, economic activity, and service delivery in townships.

GeoScope is currently working with the Marketing Research Foundation (MRF) in the development of GeoMAPS. GeoMAPS leverages data from the MAPS survey that covers the entire country and provides a wealth of information on consumer demographics, income, expenditure, and lifestyle choices. This comprehensive dataset empowers businesses and policymakers to understand local affordability, consumer preferences, and market potential.

The 532 major townships covering over 4,000 km2 play a significant role in South Africa’s economic and demographic landscape. These townships are home to approximately 19 million adults, representing 40% of the country’s population. By analysing the data within townships, GeoScope has unlocked valuable insights into each township’s unique characteristics, enabling the development of effective socio-economic policies, service delivery improvements, and route-to-market strategies.

Township-specific data is presented in the video below for townships such as Soweto, Tembisa, Khayelitsha, and Umlazi, which showed population trends, gender ratios, economic activity, and household sizes. These insights help businesses tailor their marketing strategies and understand the economic potential of different townships. Working with GG Alcock of KasiNomics, GeoScope has grouped multiple townships together to analyze larger areas and identify economic development clusters.

The data shows the changing dynamics within townships, with new housing developments, infrastructure upgrades, and increasing investment opportunities. The rise of gated communities, premium housing, and mixed-income developments are reshaping the township landscape, attracting upper-income black consumers. These developments present promising avenues for private sector engagement in township sectors such as education, healthcare, and retail.

Using heat maps and spatial analysis, the team highlighted concentrations of upper-income black consumers within townships, as well as their movement into nearby suburban areas. Such insights allow businesses to strategically position themselves and cater to the needs and preferences of these consumers. The data revealed that a significant portion of this upper-income group is employed in the public sector or state-owned enterprises, while a substantial number also receive social grants.

GeoScope’s achievements have brought a data revolution to South African townships, empowering businesses, governments, and municipalities with invaluable insights. The combination of robust spatial data, comprehensive datasets, and a deeper understanding of township dynamics has opened up new opportunities for economic growth, improved service delivery, and more targeted marketing strategies.

GeoScope’s work comprehensive data has contributed to unlocking the immense potential of South Africa’s townships and has transformed the way data is collected and analyzed in the country.

Watch the video by clicking on YouTube

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