Informal fast-food market in townships is a R10 billion industry

Mbopha's Place in Alexandra is an interesting case study into billions of rands estimated to be circulating throughout South Africa's townships.

The country's informal fast-food market is estimated to be worth R10 billion. Mbopha's place specialises in kotas, which are quarter loaf bread sandwiches with various fillings.

702's Azania Mosaka spoke to general manager of the establishment, Mathabatha Jobo, regarding the issue.

Listen to the interview below:

We concentrated on what people need in Alex and the affordability factor for people.

Mathabatha Jobo, Mbopha's Place General Manager

On a good day, we make about R50 000 a day and above. The bad days are when there's no electricity, but we have measures in place for that.

Mathabatha Jobo, Mbopha's Place General Manager

We've got a kota (quarter loaf sandwich) that starts from R12.50 and we add extra cheese and polony which can go up to R50 with additions.

Mathabatha Jobo, Mbopha's Place General Manager

CEO of Minanawe Marketing and author of Kasinomics, GG Alcock, regarding his insights and research regarding the issue.

The total market for cheese slices are around R1 billion a year. So if you look at one cheese slice per kota, you can very simply assume an average price of R10 per kota. That's just the kota industry.

GG Alcock, Author of Kasinomics

What we see a lot of is that they are multiplying instead of multiplying their operations. They need some support from corporates which they support.

GG Alcock, Author of Kasinomics
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