Are you interested in doing business in South Africa? Are you an investor looking for business ideas in South Africa to invest money in profitable business ventures? If so, find here a list of profitable businesses to start here on this continent with a small investment.
According to the SA’s Quarterly Financial Statistics (QFS) report, the trade sector is the largest player in the business landscape, contributing 36% to R2,3 trillion. Manufacturing takes second place, followed by business services. There are an estimated 650,000 small businesses in South Africa, employing around 7.8 million people.
17 Small Business Ideas in South Africa
Find below our selected list of low-cost business ideas in South Africa that can be started from home or on small scale:
Home-Based Business Ideas in South Africa
1. Start a Blog
There are many bloggers in South Africa earning millions. Starting a blog requires a nominal investment and is very easy to start nowadays. Choose a niche that you are passionate about and have a try. Who knows, you can be a famous blog owner in a year or two. If interested, check our detailed guide on starting a blog and making money.
2. Virtual Assistant
Check out online job marketplaces like Fiverr. There are thousands of people earning a good income doing virtual jobs. Check out our guide on how to become a virtual assistant and make money.
3. Take Surveys
Online survey sites provide good home-based income opportunities for people looking for side income. Check our guide on how to make money from survey sites from legitimate survey sites genuinely providing survey jobs
4. Start a Dropshipping Business
Dropshipping business is steadily getting popular among young entrepreneurs in South Africa. If you want to know more about the dropshipping business, check this article on starting dropshipping business.
5. Graphic Design Service
If you are interested in designing, graphic design is one area where you can make a lot of money from home. You need to have graphic design software and make freelance vendor profiles in online job marketplaces.
Small Business Ideas In South Africa With Low Investment
6. Farming Business in South Africa
Most people in South Africa depend on farming for daily income. You can produce Carrots, Onions, Leeks, Tomatoes, Spinach, cucumbers, Cabbages, Garlic, Pumpkins, Capsicums, Lettuce, potatoes, sweet potatoes, etc, and sell to the local marketplace.
7. Real Estate
The real estate market is on the rise in South Africa. The subcontinent has a huge housing problem in all its urban and semi-urban areas. Other than normal housing business activity ideas like cement block making, and stabilized earth bricks making units are some of the business ventures you can explore here.
8. Food Processing
The market for processed food is increasing in South Africa. Most people purchase lots of food items from foreign countries. any local entrepreneur can produce those items and sell them to local customers. Food items like fruit Juice, Sausage, Meat Grinding, Soymilk, honey, poultry, etc can fetch good returns.
9. Intellectual Property Services
More and more Multinational organizations have started to invest in South Africa. Small companies are bound to grow to support these large corporations. There would be a requirement for IP-providing companies to structure and protect intellectual properties.
10. Start an E-commerce Business in South Africa
E-commerce activities are starting to boom in South Africa. The number of internet users in South Africa is the second highest in the world only next to China. However, the most challenging aspect of e-commerce companies in the African continent is the lack of logistics facilities.
Any company that will be successful in setting up a proper distribution network of delivering products will surely reap huge benefits as the market is very large.
11. Start an Energy-Related Business in South Africa
This part of the world desperately needs a huge supply of power for development. However, the latest energy data shows that there will be a 50 % growth in installed energy from 2020 to 2025 in the African continent.
Though the main source for power generation in South Africa is hydro-based, presently more and more thrust is given to gas, liquid fuel, and renewable energy sectors. Hence, investing in the energy sector is a potentially profitable option in South Africa at present.
12. ICT Services
There is tremendous scope for building a business in the field of information and communication support. Most South African companies are desperately looking for investors in this field.
The lack of large-scale dependable logistics providers is a big problem in most African countries. This creates a huge business opportunity for investors investing in the logistics sector in South Africa.
14. Data Collection Services
Every big organization depends on authentic data before deciding on any activity. Unfortunately, there are few valuable and structured data sources available in South Africa.
Suggested Read: How to Start a Profitable Data Mining Business
The international community hires an overseas consulting firm for data collection and spends a huge sum of money. This creates a huge business potential for South African entrepreneurs having some expertise in data collection services.
15. Manpower Recruitment
Finding suitable manpower is a big problem for companies working in this subcontinent. There is a good demand for qualified recruitment companies here in this part of the world. Starting a recruitment firm and providing manpower is a very big business opportunity in South Africa right now.
16. Footwear Manufacturing
Still, most African countries largely depend on footwear imported from China. As an example, China exports approximately 90% of all the footwear imported into South Africa. If you are a startup entrepreneur in South Africa, do seriously consider starting footwear manufacturing.
17. Fruit Juice Production
South Africa produces fruits in abundance. It is surprising the local demand for fresh juice consumption is met by importing from foreign countries. This is an area of opportunity that enterprising young individuals of South Africa must explore.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.