Two staff behind a glass counter assist a customer; shelves stocked with goods in the background.

Digital Innovation for Modernising the Independent Economy (DIME)

Transforming township spaza shops. Empowering communities. Building safer economies.

Background

In 2024, South Africa was shaken by a series of tragic foodborne illness outbreaks that claimed the lives of young children in township communities. The incidents exposed deep gaps in food safety oversight, informal retail regulation, and local economic systems.

In response, UNDP South Africa launched the Digital Innovation for Modernising the Independent Economy (DIME) initiative to ensure that no child’s life is ever put at risk by unsafe food sold in their local spaza shop.

The project’s four core pillars are:

  1. Digital Transformation

    • Registering 20,000 spaza shops with digital IDs and compliance dashboards.

    • Deploying IoT-based food safety tools for hygiene and stock checks.

    • Providing real-time data to shop owners and municipal inspectors for improved accountability.

  2. Capacity Building & Youth Empowerment

    • Training 30,000 township residents in digital literacy, food safety, and business management.

    • Establishing a network of 40 youth digital ambassadors — 60% of whom are young women — to mentor shop owners and drive digital adoption at the community level.

  3. Financial Inclusion

    • Onboarding shops onto mobile money platforms and e-commerce supply chains.

    • Linking compliant businesses to wholesale and credit facilities.

    • Hosting financial literacy clinics to improve access to finance for informal entrepreneurs.

  4. Governance, Advocacy & Sustainability

    • Strengthening municipal oversight through data-driven monitoring systems.

    • Convening public-private dialogues to align policy and investment priorities.

    • Establishing a tripartite MoU between UNDP, the City of Johannesburg, and Wakanda NPC to sustain local ownership.

Why It Matters

Township spaza shops are the heartbeat of local economies — providing daily essentials, employment, and community cohesion. Yet many operate outside formal systems, lacking access to digital tools, financial services, and safety regulation support.

DIME is changing that by bridging the gap between innovation and inclusion — ensuring that township entrepreneurs are not left behind in South Africa’s digital transition. By modernising these businesses, the initiative strengthens local economies, reduces health risks, and restores public trust in informal retail.

DIME reimagines township economies as safe, digital, and inclusive centres of growth. The initiative combines technology, training, and policy innovation to transform 20,000 spaza shops across 15 Gauteng townships into digitally connected, compliant, and community-trusted businesses.

Impact

START DATE

April 2025

END DATE

December 2026

STATUS

Ongoing

PROJECT OFFICE

South Africa

IMPLEMENTING PARTNER

UNDP

DONORS

UNITED NATIONS DEVELOPMENT PROGRAMME

TOTAL CONTRIBUTIONS

$550,000

DELIVERY IN PREVIOUS YEARS

2025$173,955

Full Project information

20,000

spaza shops to be registered and modernised

30,000 township residents to be trained in digital and safety skills

40 youths to be empowered as digital ambassadors

Improved food safety and community trust across participating townships

Strengthened municipal capacity for sustained oversight and regulation

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