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Business Opportunities in South Africa

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South Africa is changing at a rapid rate and offers no shortage of business opportunities. Perhaps more than any other developing nation, the changing political climate, and wider continental development picture, has opened doors, but also on occasion, presented obstacles.

But as we enter into a new decade, South Africa can look forward to continuing its development, especially in areas such as finance and manufacturing, which collectively account for roughly a third of the GDP.

The country’s private equity funds now amount to around 3.2% of the GDP, compared to a global average of 2.7%, which makes for a fertile investment opportunity. But which are the key opportunities for business investment in South Africa in 2020?


Source: Pexels

As the nation rapidly becomes more connected in terms of its internet access, many of the biggest investment opportunities in South Africa relate to online start-ups.

Recent stats confirm that more than 30 million citizens are now active internet users and the country’s overall internet penetration is growing by around 7% year on year. Investors are taking notice of this trend, especially as it opens up several possibilities related to affiliate marketing.

In simple terms, affiliate marketing is a model of advertising that allows third-party publishers to monetize their websites by working with a partner to send traffic to their partner’s website. Depending on the model in place, publishers may be paid a commission for every time an advert is seen, for every click or for every purchase that is made as a result of a referral.

Amazon was a trail-blazer in the field, but many other businesses, across a range of industries are catching up and a range of techniques and tactics are employed. Gambling is one industry that has a significant footprint in affiliate marketing, and betting on lottery jackpots is becoming a lucrative part of the sector. And because South Africa is still growing as an ‘internet active’ nation, the opportunities for future growth are truly plentiful.


Source: Pexels

Elsewhere, businesses in industries including healthcare, crafts, and communications are attracting particular interest from investors, while green tech is still an emerging market. Renewable energy and sustainable technologies are growing in stature globally and South Africa is a part of that.

And although it’s now nine years since South Africa hosted the World Cup, several benefits from the staging of the tournament are still being realized. The awarding of the World Cup to the rainbow nation saw a Tourism Enterprise Partnership formed to help deliver arguably the biggest sporting event in the continent of Africa. The establishment of the partnership has helped promote the tourism sector and encourage the creation of new businesses like hotels, restaurants and entertainment destinations.

Speaking of entertainment, the South African film industry is also growing at a rapid rate, supported significantly by the low production costs in comparison to more established destinations for movie makers.


Source: Pexels

Industry experts confirm that you can expect to pay 40% less to produce a film in South Africa than in the USA or Europe, and many of the biggest studios are beginning to take advantage of this.

Big screen hits like Blood Diamond and Lord of War were filmed in South Africa, and the success of both pictures has helped put the country on the map during the last 15 years. All of these factors and more are helping gradually transform South Africa into a lucrative proposition for many types of investor.


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