The United Nations Development Programme (UNDP) in South Africa has launched the Digital Innovation for Modernising the Independent Economy (DIME) initiative to transform township economies through digital tools that improve food safety standards.

Developed in response to the 2024 food-borne illness outbreaks, DIME introduces a digital public infrastructure platform for township economies that integrates digital identity, food safety routines, traceability, stock management, and e-payment functionalities.

Anchored by the Sphazamisa app, the ecosystem is designed to make township retailers safer, more resilient and fully visible within South Africa’s evolving digital economy.

The first phase of the DIME is now rolling out across Gauteng, and offers township enterprises the tools and support systems needed to transition from traditional operations to a digitally enabled, finance-ready model, the UNDP says.

The DIME reframes the informal economy instead as an independent economy, namely one that is a legitimate, dynamic and an essential part of South Africa’s growth story, the organisation says.

“Township entrepreneurs have built a R1-trillion economy, often without support. The DIME is our response to that reality,” says UNDP South Africa resident representative and Africa Sustainable Finance Hub director Maxwell Gomera.

“We are not asking people to fit into frameworks never designed for them. We are building new systems that recognise the independent economy for what it is, namely innovative, resilient and investable. This isn’t charity, but an economic strategy. When township enterprises grow with dignity and support, South Africa grows,” he says.

The DIME initiative aims to digitally transform spaza shops. Through the Sphazamisa app, participating retailers receive a digital identity linked to the City of Johannesburg’s business registry, which is a partner of the initiative.

Additionally, Internet of Things-enabled tools, including quantity-recognition and near-field communication scanners, support food safety monitoring, inspection readiness and real-time traceability.

These insights feed into a municipal dashboard that strengthens early-warning systems and improves public health oversight, the UNDP explains.

Further, the DIME is creating a community-led digital transformation movement for capacity building and local empowerment.

A network of young digital ambassadors, with a deliberate focus on women’s participation, supports retailers in adopting new tools, improving business practices and ensuring long-term sustainability.

Additionally, by collaborating with financial technology partners and wholesale suppliers, the DIME ensures that digitally compliant shops can access secure payments, structured supply chains and pathways to credit.

Financial literacy clinics, which will be provided as part of the initiative, will further equip enterprises to manage electronic transactions, build credit histories and expand their operations, the organisation adds.

Further, the DIME is built on strong coordination between public institutions, private innovators and community actors to ensure long-term sustainability.

Regular dialogues, co-design sessions and capacity-building efforts support policy alignment and long-term institutional ownership, the UN organisation adds.

“South Africa’s township retail ecosystem sustains millions of livelihoods, but faces persistent barriers, including limited digital visibility, weak access to finance and fragmented compliance systems.

“The DIME responds to this by strengthening public health and food safety systems and making township retailers visible, creditworthy and investment-ready. It is also creating scalable youth employment opportunities, and building inclusive digital public infrastructure,” Gomera says.

The DIME can also serve as a nationally scalable blueprint for modernising the independent economy by ensuring township enterprises are not just surviving but thriving in the digital era, he adds.