Informal Economy: The car wash business

Exploring the significance of the car wash business in the informal and township economy

Thabiso Legodi

1 min read

Car washes have long been a part of South Africa’s township economy, but today’s car wash businesses are far from traditional. In a highly competitive market, they’ve adapted by using tools like WhatsApp and social media to engage customers, organize events, and promote their services. These modern car washes are more than just service providers—they’ve become social hubs where men gather to relax, braai meat, and unwind.

Often located near informal businesses like food vendors and liquor outlets, these car washes form part of a larger ecosystem that sustains local communities. However, new government by-laws may threaten their success by restricting where and how they operate.

These evolving businesses highlight the resilience of the informal economy. As a researcher, I document these dynamics to help businesses and stakeholders understand the impact of such changes. Contact me to explore the untapped potential in South Africa’s township economy.