This paper aims to assess the relationship between COVID-19 pandemic and the South African township economy in King William’s town, South Africa. The research methodology utilized a descriptive cross-sectional (survey) design. The population included micro and small business owners and or managers in King Williams Town, South Africa. Random sampling technique was used to sample 210 participants. The data were collected from owners/managers of micro and small businesses using a questionnaire method. The average age of the participant was 29 years (SD = 1.12), 37.6% were males while 62.4% were females. The findings of this study revealed the impact of the pandemic on micro and small businesses in the township area and that COVID-19 pandemic negatively affected micro and small business performance. The study therefore concludes that South Africa's lockdown measures introduced to contain the virus have had a significant economic impact on the township economy, particularly on micro and small businesses, which account for the majority of the township economy.