South Africa

The township entrepreneur in Diepsloot making R9,000 a month by fixing cars and mixing paint

Bianke Neethling • 7 July 2026

Alys Khululeka Panel Beaters and Spray Painting in Diepsloot is one example of a thriving business in South Africa’s hidden and often misunderstood informal economy.

Founded and run by Khazamula Mathonsi, the business employs four people and makes anywhere between R200 and R300 per day.

The informal market refers to the thousands, if not millions, of businesses that South Africans have started to get by and earn an income in the country’s stagnant and unequal economy.

However, this is not to say that these businesses are merely surviving, as there are many examples of thriving enterprises in South Africa’s informal economy.

Kasinomics author and informal economy researcher GG Alcock has dedicated his career to shining a light on this often misunderstood segment of the local economy.

In an interview with the Gareth Cliff Show in 2025, Alcock explained his belief that the informal market is, in many ways, the future of economic activity.

Based on Alcock’s research, the informal economy is growing rapidly and is home to many highly successful businesses.

He explained that, because the informal market is quite hidden, it is also often misunderstood.

For example, many South Africans may believe that informal businesses are some South Africans’ only way to generate an income, serving almost as a “last resort” option for those who cannot find employment elsewhere.

“In many cases, they’re actually very successful businesses. They’re not there because they don’t have alternatives,” Alcock said. “Often, they’ve left the formal sector, and they’ve actually moved into those kinds of spaces.”

By Alcock’s estimations, the informal market generates anywhere between R750 billion and R1 trillion a year in turnover.

He pointed to the Spaza sector as an example, saying estimates place the value of this market alone at around R190 billion a year across 100,000 outlets.

“There’s a huge number of sectors there: the auto sector, auto mechanics, the building sector, township bakeries, caterers, car washes, you could literally go on and on. Every single sector is represented,” he said.

Another misunderstood aspect of the informal economy, according to Alcock, is that it has to be formalised in order to add economic value.

Alcock explained that he is a proponent of “hybrid formalisation”, whereby the informality of the business is kept the same, but more formal processes are introduced in ways that support the business.

For example, a trader who sells goods on a busy street corner at a taxi rank needs to stay in that location, because it’s close to their customers.

However, formality can be introduced by giving the trader access to more advanced payment methods, like card machines.

Alys Khululeka Panel Beaters and Spray Painting

A Daily Investor representative recently visited some township businesses to see how the informal economy operates on a day-to-day basis.

One business we came across is Alys Khululeka Panel Beaters and Spray Painting, an auto shop operating out of Diepsloot.

The business was founded and is currently run by Khazamula Mathonsi, who employs four other people.

Alys Khululeka offers car panel beating and spray painting to local Diepsloot car owners who need quick and affordable bodywork repairs.

They specialise in smoothing out dents and bringing fresh life to damaged vehicles through panel beating and spray painting.

They charge about R150 for small fixes and touch-ups, bringing in between R200 and R300 per day. The business accepts both cash and digital payments.

Khazamula also has big ambitions for his business’s future, with plans to upgrade his workspace and expand Alys Khululeka’s reach.

His main expansion goal is to construct a fully enclosed, dust-free spray booth. With access to funding or business grants, he hopes to invest in a heavy-duty air compressor and professional spray guns.

These upgrades will allow Khazamula and his team to scale up and tackle full-body resprays.

In the meantime, the team is doing impressive work even without relying on modern, expensive computerised paint-matching systems.

Daily Investor’s representative found that Khazamula and his staff have mastered the art of “naked eye” colour blending.

The team at Alys Khululeka can manually mix paints to perfectly match the faded or custom colours of older vehicles – a rare and impressive skill that keeps their customers coming back.

The photos below, captured by Daily Investor’s representative, show Alys Khululeka’s operations in Diepsloot.