South Africa is the second largest economy in Africa. The country ranks 39th on the Ease of Doing Business Rank and the World Bank ranks it as an upper-middle income economy.
Although poverty is still a problem in South Africa, and a huge fraction of the population is unemployed, there are many untapped business opportunities for insightful investors. So if you have some funds that you would like to invest in South Africa, then here are the ten best small business investment opportunities you can explore:
10 Small Business ideas & Opportunities in South Africa for 2020
1. Real estate
Being a rapidly growing country, the demand for land, houses and other facilities by individuals and businesses is booming. And this makes the real estate sector one of the most lucrative aspects of the South African economy. If you have little capital, you can start dealing in low cost land and housing units. And if your capital is on the high side, you can invest in large expanses of land as well as housing estates.
2. Clothing and textiles
South Africa’s clothing and textile industry is another very lucrative sector. The demand for South Africa-made clothing and textile products is high not only in South Africa, but also in neighboring countries. So, if you have what it takes to break into the textile market, then you can make lots of profit in the long term.
Although there are quite a number of processed food manufacturers in South Africa, the huge demands are still yet to be met. So, there is enough room for new investors in the food processing industry. You have a wide range of products to choose from; fruits and vegetables, juices, animal products, and so on.
South Africa has a wide expanse of land that can be utilized for agriculture. With huge demand for agricultural products and adequate workforce, new investors can easily start a business in the agriculture sector. Depending on your capital, you can start on a small scale or on a large scale. With a low capital, you can cultivate selected crops on a small piece of land or rear animals such as fishes or poultry. But if you have larger capital, you can cultivate a wide range of crops and rear animals as well.
South Africans are now feeling more comfortable with buying their needed products and services online. So, online retail stores in South Africa are now enjoying more patronage. And chances are you will make lots of profit by starting an online retail business. Even if you are on a low budget, you can start with just one product category and expand from there.
6. Foreign cuisine
South Africa plays host to many expatriates, and many tourists visit the country annually from different parts on the world. For these reasons, there is always huge demand for foreign delicacies, which most of the restaurants in South Africa don’t offer.
So, there is huge profit potential in a restaurant business that offers various foreign cuisines such as Italian delicacies, Chinese delicacies, American delicacies, and so on. In addition, you can still offer local delicacies to cater to South Africans as well.
7. Online marketing
Many South African businesses are trying to establish and improve their online visibility as a way of attracting customers through the internet. In fact, businesses are setting aside a sizeable fraction of their marketing budget for online marketing alone.
This creates huge opportunities for online marketing experts such as SEO consultants, website designers, copywriters, and social media managers. If you have a good background in any aspect of online marketing, you can start a business and make money from your skills and expertise.
In order to cut cost, many individuals and businesses in developed countries like the US and the UK now hire freelance writers from other countries. But South Africa tops the list of their preferred countries because the country is widely regarded as a native English-speaking country.
So, if you have good writing skills, you can make a lot of money by working as a freelance writer for clients from all over the world. Writing assignments you will handle include blog post writing, article writing, press release writing, proposal writing, newsletter writing, copywriting, and so on.
9. Technology products
South Africa is one of Africa’s largest markets for technology products such as PCs, smartphones, and tablet computers. Since these devices are in huge demand in South Africa, new investors can make lots of profit by selling the latest products by global brands such as Apple, Samsung, Sony, and so on. In addition to selling technology products, you can sell their accessories as well. And if you have the expertise, you can render repair services, too.
South Africa hosts thousands of visitors every year. These people come from various parts of the world to behold South Africa’s rich cultural heritage, beautiful sceneries, lush landscapes, and so on. A smart business move is to offer services that cater to tourists, such as working as a tourist guide.