South Africa is endowed with the best resources and markets for entrepreneurs to thrive. I’ll share with you ten smart business opportunities in South Africa worth pursuing.
People say, ‘I want to be rich.’ The question is, are you willing to do what it takes? I pose this famous quote by NY best-seller and businessman Robert Kiyosaki to you.
According to a study by the African Development Bank Group, South Africa’s GDP is projected to improve by 1.8% in 2021 despite the Covid 19 global epidemic and domestic challenges.
So, the time to do business in the Southern Republic is now if you want to be rich.
We know that South Africa is the second richest country in Africa by GDP, after Nigeria. We also know that her richness is mainly due to minerals, more so gold and diamond.
While the mineral sector leads the investment line, there are other business opportunities open to investors.
I’m going to cover ten business opportunities in South Africa that are not as capital-intensive as investing in the mining sector but very lucrative.
10 Lucrative Business Opportunities In South Africa
1. Event Planning Business
There is an increased demand for event planners across the various cities in South Africa. From parties to corporate events, the opportunities for event planners are endless.
Of course, other than having the right event planning infrastructure, strong communication skills are pivotal. You’ll also need a strong team to help you reach higher heights in the event planning sector.
In South Africa, high-profile weddings, private parties, and corporate events pay the highest to the right event planners. So, target that in the long-term.
Remember, every successful business always has a small beginning. So, it may be a while before people can take note of your brand and trust it.
Once that happens, then you’ll be building a business empire and taking the South Africa event sector hostage.
2. Agribusiness
South Africa has massive agricultural land and a ready workforce. Plus, there is an increased demand for agricultural produce within the country and overseas.
That means there’s an opportunity to make money as an Agripreneur. Some of the most lucrative agree businesses in South Africa include beekeeping, dairy farming, poultry farming, rabbit rearing, and pig farming.
The good thing about pursuing agribusiness is that you can start small. You’ll, however, need to do your research correctly. Ensure you identify your target market and find the necessary resources to run your agribusiness successfully.
With the right business plan and a good marketing strategy, you can make it an Agripreneur in South Africa.
3. Cleaning and Laundry Services
You can decide to pursue cleaning or laundry or both. That’s because there is an increase in demand for professional cleaners in South Africa.
The need for residential cleaning services is greater than ever. That’s because so many South African homeowners don’t have the time to clean their homes. As a result, they resort to hiring professional cleaners.
The same homeowners don’t have the time to do laundry, and they would rather pay someone to do it.
While this is considered a small business sector, it is one of the most promising for investors. The best part is that it also benefits the local community by creating jobs.
When it comes to offering laundry services, you can offer them from home or a laundry shop. While the former saves on rent, you are likely to make more money with the latter.
4. Car Rental Business
The local car rental industry is becoming as dominant as the property rental sector. Today, so many car rental businesses are coming up in South Africa, and there is still room for more.
Car-sharing services are leading the line, where a ride-sharing service like Uber is dictating the terms. But still, there are other opportunities for car renting at the airport, funeral homes, wedding settings, and tour businesses.
The secret is to pick a suitable subcategory and brand your business to stay in-demand.
Investment-wise, joining a ride-sharing service is easier as you can start with one or two cars.
5. Delivery Service Business
Given that most South African’s don’t have the time to do laundry, they also don’t have the time to go to the shops to get groceries. Others prefer to stay indoors because of old age, medical conditions, among other reasons.
Instead of preparing meals at home or go to the nearest food joints, some prefer to have it delivered to their doorstep. Therefore, they always turn to meal delivery services.
Yes, there are many food and grocery delivery services in South Africa, but they still cannot meet the ever-rising demand.
The exciting thing is that it’s not just about food and groceries but also packages. Locals want to have parcels delivered across the country at affordable rates.
Most of them turn to local courier services for help. So, you can also dive into the courier service line.
Overall, it doesn’t matter what line you pursue as long as you have the right infrastructure and team to meet the client demands.
6. Vegan Food Business
Vegan food joints are everywhere in Western Europe but not so much in Africa. Given that so many Europeans visit South Africa regularly, a good number of them wish to dine at vegan restaurants.
Yes, there are a few vegan food joints in major South African towns, but they’ve one thing in common; they’re always jam-packed.
From an entrepreneurial perspective, that means the supply is not enough to meet the demand. So, there is a market gap for entrepreneurs to join the vegan industry.
The secret to avoiding heavy traffic and still have adequate cash flow is to keep things simple. Consider focusing on breakfast alone or maybe lunch.
You can also integrate online orders and deliver vegan food to locals who order online or via phone.
7. Local Tour Service
Though foreign tourists have dropped by 1.1% due to Covid 19, South Africa is still a major tourist destination in Africa.
Yes, there are so many tour operators in the company, but they haven’t explored all the subcategories.
There’s so much to explore as an investor, from night ghost tours and guided trail adventures to photograph expedition and local town day tours.
Foreigners who land in South Africa want someone knowledgeable and friendly to take them around, and that’s where your local tour service comes in.
Nowadays, we see more international students taking local tours, which means more opportunities for local tour service companies.
Overall, it calls for an excellent local team that knows the best places to run a local tour service in South Africa successfully.
8. Off-Grid Solar Business
Africa is warming up to renewable energy, more so solar, and South Africa is among those leading the line. It’s becoming a race between solar companies to spread solar power across the republic.
Many homes and businesses want to be off the grid since they can avoid power outages and expensive power costs. That has seen the sector grow into a multi-billion dollar economy.
The government is also supportive of the idea, making it easier for investors and solar companies.
Yes, the initial cost of going off-grid is higher, but the long-term benefits outweigh it. So, as an investor in an off-grid solar company, you are guaranteed a ready market.
9. Human Capital
Though South Africa is one of the fastest-growing economies globally, there is a need for a skilled workforce. There are so many talented South Africans, but not all of them have the literacy and skill to meet the current job demands.
That means there is a huge need for educators, not just in the academic sector.
Human capital is the economic value of a workforce. It’s critical in improving growth and workforce development and alleviating poverty.
Many organizations want to invest in human capital development to improve employee and client satisfaction and earn a better return on investment.
That means running a human capital business can make you some good cash in South Africa.
10. CBD Products Business
Cannabinoid, popularly known as CBD, is a chemical compound extracted from a plant in the cannabis family.
Though there has been a misconception about CBD products making people high, nowadays, medical CBD is prescribed in Europe and America. That has seen the rise of the CBD sector in South Africa.
Medically, CBD treats anxiety, sleep disorders, chronic pain, and acne, among other conditions. We are seeing more cancer patients now using CBD products because of their pain-relieving properties.
The secret to making it in the South African CBD sector is to dispense CBD correctly. CBDs are popularly sold as pills and capsules, oils, tinctures, vapes, creams, and edibles.
In Conclusion
There are many business opportunities in South Africa, and what I’ve shared is just a fraction. They are an excellent place to get you started.
With proper research and the right attitude and resources, you can successfully run a business in the Republic of South Africa