As a matter of fact: Do townships contribute R100bn to South Africa’s economy?

A claim made by EntBanc chief executive Vuyo Tofile's that "South Africa’s townships contribute up to R100 billion to the overall economy" is in the spotlight this week.

Africa Check's senior researcher Kate Wilkinson explains why the statistic, believed to be from a draft report shared by the Gauteng Department of Economic Development, cannot be proven.

In this draft document it said, according to the World Bank study on South African townships, their combined economy is estimated at R100 billion. We found that World Bank report called Economics of South African Townships, but it did not have the figure.

Kate Wilkinson, senior researcher at Africa Check

What we found was that the study was published in 2014 and it looked at the economic conditions and the types of businesses in Diepsloot. What it estimated was that the equivalent gross domestic product for Diepsloot was R671 million.

Kate Wilkinson, senior researcher at Africa Check

We got in touch with one of the authors of the World Bank report and he said that no extrapolation should be done on the basis of this study, he said that is because we have not tested and we can't assume that Diepsloot is an average South African township.

Kate Wilkinson, senior researcher at Africa Check

Click on the link below to listen to the full conversation...


This article first appeared on 702 : As a matter of fact: Do townships contribute R100bn to South Africa’s economy?


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