The role of the ECD sector in the township economy

It can be argued that the ECD sector's worth in the hidden economy is between R10-14bn

- RIEDEWHAAN ALLIE

KASINOMICS founder, GG Alcock (2025), found that South Africa's township economy is worth more than R1 trillion. In this regard he found that:

Spaza shops account for R190bn with about 100 000 outlets.

Spaza shop rentals generating about R25bn per year.

Fast food and street vendors account for R90bn with more than 50 000 outlets.

The beauty and hair-weaving sector were worth about R10bn per year.

The taxi sector was worth R50bn with more than 250 000 vehicles on the ground.

Stokvels are also worth about R44bn.

Back-room rentals generating about R20bn for the township economy.

The author has provided a vibrant lens through which we can view township life and how ordinary people have managed to "hustle" to survive and put bread on the table for their families.

The question now is: what has Kasinomics or the township economy got to do with ECD? Similar to how Alcock (2025) established the worth of spaza shops, the taxi industry, street vendors and township rentals that are generating income in the townships, I tried to use the same lens for the ECD sector.

The early childhood development (ECD) sector with 42 420 ECD sites counted in the recent ECD Census (2022), found that 1 660 317 million young children benefit or are enrolled in the ECD sites. The ECD Census also found that each ECD site made provision for at least 39 children with an average monthly school fee of about R500 per child. It can therefore be argued that the exchange paradigm that exist between parents and ECD service providers or operators generate about R9.9bn per year. A recent World Bank study (2023) found that families spend over R14bn annually on preschool fees. The ECD sector also provides employment for about 200 000 preschool teachers - clearly playing an important role in the township economy. It can therefore be argued that the ECD sector's worth in the hidden economy is between R10-14bn.