Fastest growing industries in South Africa

A thriving economy is dependent on the kinds of industries that largely control the market within it.

These industries are regarded as the most thriving sectors in the economy because they push the country’s GDP upward.

If you would like to invest, it’s important that you first conduct a feasibility study to discover which of the thriving sectors will yield the most profitable investments for you.

When considering an industry to invest in, you should consider those that are constantly growing and those whose business opportunities are constantly expanding.

Before you invest, you need to first be aware of the fastest growing economies in South Africa. Communication and Information Technology takes the lead as one the fastest growing industries.

Others are Agriculture, Mining, Tourism, Manufacturing, Financial, Textiles and the wholesale and retail sector.
Fastest growing economies in SA
You need to familiarize yourself with any industry you will be investing in before you plunge. You should know how much of the economy the industry controls, what potentials the industry holds, and how favorable your investment will turn out. These are some of the fastest-growing industries in South Africa presently:
1. Communications and Information Technology (ICT)
The ICT industry has shown consistent growth in the country and the world at large. This is because of the never-ending technological inventions that have equally created a demand for technological products. The transition to fiber optic cables for communication, for instance, has accounted for a significant percentage of this growth. The market for mobile phones is also making this industry grow. The market created through mobile phones in South Africa stands at the fourth position worldwide. Some of the areas that show great potentials in this industry include: exporting cell phone hardware, solar cells, cell phone software development, processing of silicon to be used in fiber optics, providing financial services, and dealing in integrated circuits. Majoring in any of these lucrative business ventures will guarantee good returns since the growth rate of this industry stands at 50%
2. Agriculture
Agriculture is South Africa’s second growing industry. More than half of the country’s population directly depends on agriculture, through income or employment. It is another profitable venture because it is vast; it cuts across forestry, animal husbandry, and fishing. It is the mother to other industries like agri-processing that cut across the processing of fish and meat, fruits, nuts, and herbs. The products from this industry are mainly for export; hence, they guarantee good returns, especially for quality goods.
3. Mining industry
South Africa greatly depends on the mining industry. This industry earns the country an outstanding share of income since South Africa is the world’s largest producer of platinum and gold. The state is also the fourth producer of diamonds. The country also boasts of being home to the best quality base metals and coal. Since the country’s technology is also developed, there are substantial returns in the mining industry. If you are looking for investment opportunities in South Africa, the mining industry has a very promising venture. You can major in the processing of the minerals.
4. Manufacturing industry
South Africa is also endowed with a very developed manufacturing industry. This is another diversified industry that has so many business opportunities. It correlates with the agricultural and mining sectors; hence there are efforts to ensure that the industry competes well globally. The manufacturing industry is the mother to the following sectors; chemicals, automotive, agro-processing, textiles, clothing, metals, and footwear.
5. Tourism
Tourism is another significant sector in South Africa’s economy. According to a report by the World Travel and Tourism Council (WTTC), the industry is a direct employer to a more significant fraction of the country’s population, as compared to the mining and manufacturing sectors. Since the country’s tourism sector has shown consistent growth, this sector poses a very lucrative investment opportunity. The good thing about this sector is that it can accommodate anyone, regardless of the amount of money they are willing to invest. It, therefore, stands as a very profitable business opportunity in South Africa, especially for the youths.
6. Textiles industry
South Africa’s textiles industry plays a very significant role in the country. It is the second source of tax revenue. In terms of employment, it comes third in the manufacturing sector. The sector is well established that it is the country’s eleventh industry in terms of exports.
7. Financial services
South Africa’s financial system is well regulated, and the country’s central bank and other banks that are financially strong operate in the country. There has, however, been a transformation in the banking sector, which has created room for other foreign banks and investment companies. South African financial services sector is also among the most lucrative investment opportunities South Africa boasts of.
8. Wholesale and retail trade
The retail trade has for the past years proven to be among the most profitable sectors in the country. The retail trade sector has shown so much potential in the following areas; pharmaceuticals, hardware, general store, food and drinks, and textile and clothing. There has been a readily available market for these goods.

 

 

Be the first to comment

Leave a Reply

Your email address will not be published.


*