Business

Township entrepreneur making R24,000 a month fixing tyres, wheels, and exhaust pipes in Diepsloot

Shaun Jacobs • 3 July 2026

Diepsloot Tyres & Wheel Workshop generates close to R1,000 a day repairing tyres, wheels, and exhaust pipes for local taxis, cars, and delivery motorbikes.

Operating with only three employees, the team operates like a local pit crew for vehicle owners for whom every minute off the road is lost money.

This is but one example of a highly successful business in South Africa’s informal economy, which Standard Bank estimates to be worth R900 billion.

Often derided for not contributing to the fiscus by operating under SARS radar, the informal sector is a critical part of the South African economy.

The businesses in this sector vital role in absorbing millions of South Africans who cannot find formal jobs or who need their income supplemented.

Furthermore, informal economy expert GG Alcock explained that they contribute significantly to the fiscus through VAT paid on stock and by supplementing consumer spending.

Alcock also explained that many of these businesses want to be registered with SARS and become formalised entities.

However, the administrative burden associated with this process and the lack of government infrastructure near their operations make this nearly impossible.

Alcock said these businesses do not benefit from their informality. Their potential growth is limited by a lack of access to finance, space, and basic infrastructure.

Standard Bank’s data also showed that the vast majority of businesses in the informal sector fall below the VAT turnover threshold of R2.3 million.

Around 25% of businesses surveyed by the bank reported turnover of between R500,000 and R750,000 annually.

Its data revealed that the lack of formalisation pushes these businesses to rely on family and friends for funding. Only 8.4% reported engaging with a traditional bank loan.

Standard Bank said that banks have a clear role in this economy, but are seen as a las resort when family, friends, or their own savings cannot help the business owner.

Local banks are showing increasing interest in this sector, with it likely to be highly lucrative for them. Many are using digital payment systems to penetrate deeper into the market.

Once banks have access to transaction data, they can extend credit based on the activity of the business, boosting growth opportunities.

Diepsloot Tyres & Wheel Workshop

Diepsloot Tyres & Wheel Workshop is one of the millions of small South African businesses that operate on a cash-only basis.

This gives the business control over its cash flow, with payments being immediate and the cash being used to purchase stock to supply the next customer.

Located just outside of Chuma Mall in Diepsloot, founder Letabo runs the tyre and wheel workshop with two employees.

The business operates as a Formula 1 pit crew would, with taxi drivers, car owners, or delivery motorbikes coming in for a pit stop.

During the pit stop, the three spring into action and are able to replace tyres, repair punctures, and even fix exhaust systems.

Prices are dependent on the level of service needed, with the business making between R500 and R800 on a daily basis.

A Daily Investor representative visited Letabo’s workshop to understand how it operates and his plans for expansion in the near future.

Letabo explained that he is planning to upgrade from his basic roadside setup to a fully equipped fitment centre.

This, he told Daily Investor, would require funding from investors or a business loan to purchase professional electronic wheel alignment and balancing machines.

These machines would allow Letabo and his team to offer premium services and significantly boost their revenue.

Letabo’s business is built on speed, with every minute a customer spends off the road costing them money. Their rapid turnaround time has made them the market leader in the area.

A fast-growing part of Letabo’s business is repairing motorbikes used by delivery drivers working for Uber Eats, Checkers Sixty60 or Mr D.

The photos below show Letabo’s workshop business.