South Africa’s innovative food delivery platform, Spaza Eats, is gearing up to launch a wallet-as-a-service feature, potentially transforming the app into a mobile money powerhouse. Founder Talifhani Banks revealed on LinkedIn that merchants, customers, and drivers will soon be able to use the Spaza Eats app to send, receive, fund, trade, and manage payments, payouts, and remittances.

Banks, who also founded AnalyticsX, the parent company of Spaza Eats, sees this move as a gateway to the untapped $900 billion mobile money market.

He recently shared on LinkedIn that Spaza Eats’ vision extends beyond being a logistics company. “We want to create a community marketplace and eventually own a merchant bank,” he said.

When asked about plans for a banking license, Banks responded, “Yes, we do not want to just own a logistics company on the side but to grow the marketplace to scale like other international ecommerce platforms. We want to take part in the ecosystem.”

Last October, Spaza Eats received certification to allow customers to save their bank cards on the app.

“We are currently integrating this solution,” Banks told TechFinancials “This will allow our customers to transact easier and facilitate payments for our merchants. That’s a merchant bank. Who knows, we might become a transactional bank called ‘Spaza Pay’ in the future. It’s all about how fast we scale.”

In another bold move, Banks announced the launch of Spaza Eats’ own POS machines, designed for township shops.

“Our Spaza Eats ERP allows shop owners to manage walk-in customers and online orders seamlessly,” he said. Banks also highlighted the importance of data, offering township data purchases through AnalyticsX.

Driven by a passion for community impact, Banks emphasised, “What drives me is the direct impact in our communities. Instead of giving handouts, give people a tool to fish for themselves. I’ve always been about creating a platform for others.”

With a vision to integrate communities using data science and simple technology, Talifhani Banks is not just building a business, he’s building a movement.

Could “Spaza Pay” be the next big thing in South Africa’s financial ecosystem? Only time will tell.

GUGU LOURIE: Banking on townships to rival e-giants

Spaza Eats is proving that young black entrepreneurs have the creativity, drive and vision to compete with the best and win

BL Premium

08 September 2024 – 06:33

by GUGU LOURIE

In his book Not Impossible: The Art and Joy of Doing What Couldn’t Be Done, Mick Ebeling writes: “I mean, who are we to think anything is impossible? We evolved from primates who couldn’t imagine what lay before them. There was a time when the printing press was inconceivable, circumnavigating the globe unthinkable, the steam engine unimaginable.”

Ebeling’s words echoed in my mind as I sat down with Talifhani Banks, a man who exemplifies the spirit of defying the impossible.

Banks hails from Makhado in Limpopo. He is a visionary entrepreneur determined to upend the township economy with his innovative food delivery platform, Spaza Eats.

Unlike the typical CEO who enjoys a luxurious salary or political connections, Banks is an ordinary man with extraordinary ambition. His mission is simple but powerful: to empower townships by transforming the food and e-commerce industry, meal by meal.

In July 2023, Banks founded Spaza Eats through his company Analytics X. His background in Statistics and Econometrics, combined with years of experience in retail, enabled him to see a gap in the market.

Most delivery services avoided townships due to perceived crime risks, leaving these areas neglected and economically disconnected.

“The township has always been excluded from the formal economy,” Banks notes. “But not because there isn’t economics happening there — it’s because the people running these organisations are not from the township.”

Banks said he saw an opportunity to change the situation. He envisioned a platform that connects local spaza shops, small-scale farmers and local cuisine stores directly to the communities. His plan was to create an ecosystem that would revolutionise township
e-commerce, starting with food delivery.

While competitors like Mr D, Uber Eats, Checkers Sixty60 and Pick n Pay’s Asap dominate the food delivery landscape, Banks is undeterred. Spaza Eats has attracted more than 60,000 customers and 4,500 merchants in its first 14 months — an astonishing feat given the challenges of operating in underserved areas.

Spaza shops in townships have always been underrated. “They feed so many families, but we aim to create a process where spazas can be fu