In the bustling township of Tsakane, located about 50 kilometers from Johannesburg, South Africa, Themba Maseko juggles the demands of a busy day at his modest auto repair shop. Hands marked by oil and grease, he serves a continuous stream of customers, showcasing the hectic nature of his work. Life for the 39-year-old mechanic changed for the better when he joined with fellow mechanics in forming a cooperative. This significant step has given them leverage to purchase genuine car parts and equipment collectively, ensuring they are not sidelined by larger urban service centers.
The Motor Spares Collective, initiated last year, connects township mechanics through a streamlined network. They can now place orders through WhatsApp and receive authentic parts within a day, saving valuable time otherwise spent waiting in queues for supplies that may already be depleted by big chains. “Now with the collective it’s much easier. I don’t have to go stand in queue and waste time,” remarked Maseko, who transitioned from being an electrician to a mechanic over a decade ago. “Plus, it’s at a cheaper price.”
The reality in South Africa is that small businesses drive the economy in many communities—townships being a central focus for growth and employment opportunities. Data shows that over 21 million residents live in these areas, carrying significant spending power which supports local businesses from hair salons to auto repair shops, contributing an estimated $33 billion to the informal sector.
Sharief Bartus, another cooperative member, emphasizes the importance of respect for trades practiced in townships. The collective requires a modest $10 monthly fee in its first year, offering perks such as access to parts and tools, skills development, and assistance with business registration and financing. Dorian Slimmerts, a nearby mechanic and fellow cooperative member, notes, “The more members we get, the more discounts we get, the more work we have.”
A crucial development came in 2020 when regulatory changes allowed car owners to service their vehicles with independent mechanics without voiding warranties, presenting more opportunities for township mechanics. South Africa, home to approximately 12 million cars, sees a growing need for maintenance services as people hold onto their vehicles longer and pre-owned cars gain popularity.
Township mechanics, however, face time constraints with numerous walk-in clients. Prices are negotiated, and quick service is mandatory for retaining business. Amanda Gcabashe of UBU Investment Holdings, which assisted in setting up the cooperative, stated, “All the mechanic sells is time.” Efforts are underway to enhance this through the cooperative by making spares easily available. Furthermore, the collective is exploring additional services like life insurance to offer a broader safety net for its members.
Bulelani Balabala from the Township Entrepreneurs Alliance acknowledges the power of cooperatives to unlock the economic potential within townships, a vibrant market that remains significant to the nation’s economy. “It’s a market that can’t be ignored,” he asserts.