The herculean task of starting and expanding a business is finding out your starting points and of course, location. South Africa, offers one of the best business environments in Africa, both as a startup or extension location due to the fact that it is the second biggest economy in Africa. The different cities are fast-paced due to their metropolis nature and investment by multi-nationals, and therefore, offering different affordable business opportunities as seen below.
See Also: How to Start a Business in South Africa
Here is how to find affordable business opportunities in South Africa:
1. Investment Partnerships
On June 18 2015, Satya Capital and TPG Growth, announced a billion-dollar investment opportunity in the form of a partnership in Africa. These two companies aim to invest in growth-stage companies and future, young entrepreneurs in Africa. According to these companies, middle class growth in South Africa is constrained compared to the rest of Africa; hence they are working on ensuring that business opportunities in the country have a sustainable growth as well.
TPG and Satya will offer the technical-know how, tools, contacts and most importantly, capital. Combined, these investors will pump in about one billion dollars, targeting people in need of capital in sectors such as telecommunications, health care, media, consumer services, technology and financial services.
2. Hospitality Industry
The occupancy rates for South Africa’s hotels are expected to rise from 58.9% in 2013 to 71.1% in 2018. This is according to the South African Hospitality Outlook: 2014-2018 report, which was released by Pricewaterhouse Coopers (PWC). The projected growth in the hospitality industry- a sector that is recognized as crucially important for the employment and economic growth of the country, is attributed to escalating tourist numbers.
3. Renewable Energy Solutions
The South African Department of Energy is working towards increasing the amount of energy procured via the renewable energy programme- if you are interested to get involved with renewable energy, a more environmentally friendly career. As of November 2014, the programme had initiated about 64 renewable energy projects, aiming to provide renewable energy by mainly using solar and wind energy.
4. Mobile Solutions
Within five years, the number of mobile users in Africa will be about 346 million, giving countless business opportunities in the mobile market. A report by GSMA, The Mobile Economy Sub-Saharan Africa 2014, indicates that South Africa offers the highest penetration rate of approximately 60%, opening up a chance for phone manufacturing, data bundles, mobile payments and mobile loans among other mobile solutions.
The franchising sector in South Africa generates approximately 300 billion South African Rands per year and employs over 300,000 people. Research shows that the food industry has performed tremendously well in this sector, making it a promising venture. Although dominated by companies like Taste Holdings and Spur Corporation, the food industry is an affordable way of making a living in South Africa. Fortunately, franchising is not only limited to the food industry, therefore you can delve into other areas such as BP, Kumon and Keg and so on.
A myriad of success stories have emanated from South Africa. Although the business environment is complicated and requires one to be savvy of current issues in order to be successful, the investment results make the country an attractive investment destination.
Would you start a business or open a new branch in South Africa? Leave your thoughts in the comments section below.