AI’s Role In Propelling Township Economies Forward

Access to the internet remains a significant barrier for many informal sectors in South Africa.

As artificial intelligence (AI) becomes more prevalent, township economies cannot afford to fall behind.

Jo Griffiths, founder of Global Innovation Initiative Group that specializes in funding and fostering innovation across Africa, emphasizes that AI could be a game-changer to revolutionize township economies but acknowledges barriers such as limited infrastructure, lack of internet access and low digital literacy. Lack of awareness is also key.

“Language and context barriers present another hurdle, as most AI models are trained primarily in English, limiting accessibility for those who operate in local languages and dialects,” she says.

So, how can township entrepreneurs fully leverage AI for business growth?

Balabala of TEA says that it comes back to digital literacy. “It’s important that we not only focus on bringing digital trans- formation into these spaces but [that we] also prioritize digital literacy as a key part of the conversation.”

Innovation hubs can play a pivotal role in bridging the digital divide and making AI more accessible to township entrepreneurs, according to Griffiths. These centers also offer shared workspaces with stable internet access, AI-powered software, and access to expert guidance, which can significantly lower the barriers to AI adoption.

“Most importantly, these hubs facilitate collaborations with investors and corporates, unlocking funding opportunities and accelerating the adoption of emerging technologies,” she explains.

“Integrating AI into these innovation hubs can further empower township entrepreneurs by offering AI skills boot camps, hands-on access to AI-driven business tools, and AI-mentored business incubation programs that provide data-driven insights for growth strategies. Encouraging the development of community-led AI solutions tailored to local challenges can also drive sustainable innovation.”