South Africa

The woman who makes R2,000 a day running a business out of her home in South Africa’s biggest township

Bianke Neethling • 12 July 2026

Freedoline Phokwana is a self-employed entrepreneur who makes between R500 and R2,000 a day from her home in Freedom Park, Soweto.

Phokwana’s sewing business is one of many examples of the homegrown ventures in South Africa’s huge and often misunderstood informal market.

Informal economy expert GG Alcock recently argued that, rather than focusing on new startups to support South Africa’s economy, the government should support existing informal or township businesses.

“Often I hear this thing that we’ve got no entrepreneurs in the townships and we need to create more startups,” Alcock said in an interview with 702.

“No, we’ve actually got hundreds and hundreds of thousands of entrepreneurs in the townships, and it’s not about ‘startup’.”

“It’s how do we get them to scale to a different level where they employ more people, generate more income, and so on.”

Many believe that these informal businesses remain “informal” and unregistered to avoid paying taxes.

However, Alcock has argued that this is not the case, and the lack of formality in these businesses often stems from the heavy administrative burden of becoming a registered entity.

He also said these informal businesses do pay tax, particularly value-added tax, through the goods they buy to supply their ventures and by giving their employees more disposable income.

Misconceptions like these are why Alcock believes the informal economy should be better understood, as this will allow the state to create more supportive policies.

“My issue is that if we recognise this informal economy in terms of how it’s creating jobs at scale and creating incomes, we would create better policies,” he said.

“We would invest more in it, and we would be able to grow this economy more substantially.”

He said the government should consider how it can better stimulate the economic activity that already exists in the informal market, saying this could be the key to unlocking South Africa’s economic potential.

Stitch by Freedoline

One such business in South Africa’s informal market is Stitch by Freedoline, a venture started and run by Phokwana.

From her home in Freedom Park, Phokwana runs a tailoring and sewing business that makes, customises, and alters clothing. Her offerings also include custom outfits for special occasions and hair accessories.

Phokwana charges between R20 and R100 for alterations, between R20 and R200 for hair accessories, and between R500 and R1,500 for custom dresses.

Every item is carefully crafted by hand, which ensures that customers get a unique, high-quality design that is not mass-produced.

Phokwana prides herself on her meticulous attention to detail and exceptional customer service. Her reliable craftsmanship has attracted a loyal clientele.

Her customers mainly consist of local community members, students, parents, churches, and individuals looking for bespoke clothing or repairs.

Her income varies depending on demand and is highly seasonal. During busy periods, such as Spring and Summer, when many events and weddings take place, her business can earn anywhere between R500 and R2,000 per day.

However, in quieter months, this income can be far lower, with some days seeing no sales. Like many township businesses, Phokwana’s venture accepts cash, EFTs and e-wallet transfers as forms of payment.

Looking ahead, Phokwana plans to scale up her business significantly, with plans to open a dedicated sewing studio, buy more machines, and hire additional staff.

She also wants to start hosting sewing classes and launch a ready-to-wear clothing line, which should supplement her income in the quieter periods.

The photos below were taken by a Daily Investor representative and show Phokwana’s business at her home in Freedom Park.