433369666-The-Case-for-Investing-in-South-Africa

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BUSINESS SERVICES
• South Africa is a major hub for business services on the African continent. Its highly diverse business services
sector is one of the largest in the South African economy, accounting for 13.2% of GDP in 2018.
• The major segments of the business services sector include professional services such as legal, accounting,
engineering and architectural services; real estate activities; renting of machinery, equipment, personal and
household goods; business process outsourcing; computer and information technology services; advertising
services; and, among others, business consulting services.
• The sector’s growth has benefited from the structural trend towards the outsourcing of non-core activities by
domestic companies.
• The business services sector is expected to sustain robust rates of growth in the years ahead. This will be
anchored by:
- Progressively higher rates of economic growth, particularly fixed investment activity;
- The large public sector infrastructure development programme currently under way;
- The proliferation of new-generation technologies across all sectors of the economy; and, among others,
- Growing demand in external markets, particularly in other African countries.
WHOLESALE AND RETAIL TRADE SERVICES
• The wholesale and retail trade sector contributed 14.2% to South Africa’s GDP in 2018 and is a major
contributor to overall employment.
• The sector offers attractive investment opportunities, anchored in rising customer spend that is supported by
an expanding population with increasing purchasing power, a fast-growing middle class, and the high inflow of
business and shopping tourists, particularly from numerous other African countries.
• Some of the world’s largest corporations in the wholesale and retail services arena have recognised these
opportunities, thus investing in South Africa in recent years (e.g. Walmart, H&M, Zara, Mango).
• Progressive consolidation in the sector has meant that a smaller number of companies are gaining increasing
market share in their respective market segments. Many of the businesses in the sector are integrated in their
supply chains and have well-established foundations for further expansion and investment to leverage on the
emerging opportunities.
• Several of South Africa’s major wholesale and retail corporates have, over the years, developed strong
footprints across the African continent. These include warehousing, distribution and retailing operations
sourcing goods and services not only in the host countries but also from the South African economy.