Economic prospects, trust and governance in South African townships

The research addresses the interplay of trust and governance and the effect on the economic development of South African townships post-apartheid. It examines the potential for self-sustaining growth within these historically marginalised communities, which still face significant socioeconomic challenges. Despite significant political and social transformation since 1994, Townships continue to grapple with high unemployment, inadequate housing, limited access to quality education, healthcare, and other economic opportunities. Township economies continue to depend on linkages to wealthier and more affluent urban areas. Service delivery protests are common, and poverty is increasing.

This study proposes that the continued economic disparities coupled with a history of discrimination have created a complex interplay of mistrust in economic governance institutions, identity politics and a sense of hopelessness. The goal is to understand and leverage the unique cultural and economic characteristics of townships to promote inclusive growth and reduce dependency on external economic structures. We cover four themes: the economic potential, technology as an enabler, finance as an enabler and the interplay of social identities and economic activity.

We have selected Mdantsane Township in the Eastern Cape Province and Khayelitsha Township in the Western Cape Province, which present significant contrasts in both demographics and economic conditions. We frame the empirical approach from the view that economic practices and relationships are constituted within the dual spheres of markets and community underpinned by general and particularised trust. We propose to use the Qualitative Impact Assessment Protocol (QUIP) and Participatory Assessment of Development (PADev) tool to facilitate narrative explanations of the drivers of change in various factors that affect the township economy. The approaches allow us to work backwards from perceived changes in selected domains of respondents' lives and livelihoods and trace the influence of trust and governance in economic outcomes.