South Africa Innovation Opportunities

Why should I read this document?

Opportunities and tips for innovation and doing business in South Africa

• South Africa has a large economic potential, more developed infrastructure than in most African countries, a large and diverse manufacturing sector, and English is generally understood and spoken across the country.  
• South Africa is the largest producer of platinum group metals in the world. The country has large deposits of gold, silver, diamonds, iron ore, chrome, manganese, sand and other minerals. Before deciding to participate in existing mining-related projects, learn about regulations on acquisition, possession, smelting, use and disposal of precious metals and minerals.
• South Africa is one of the world leaders in development of mining-related technologies, lithium batteries, laser and optical technologies. Consider a partnership with local research institutes for development of these technologies.   
• The government of South Africa finances large projects related to infrastructure development, alternative and renewable energy technologies, and it is looking for investors.
• South Africa is facing a shortage of water, therefore there is a large demand in water management services and technologies.
• The ICT sector has a large business potential in South Africa. Currently, there is a high demand in IT security products and data analytic services in cloud computing for financial and retail companies.
• The population of South Africa has reached 57.5 mln. people, a large share of the population is moving from rural to urban areas. Hence, there is a large demand for innovative, low-cost urban housing solutions and construction supplies.
• The variety of infectious diseases and a significant share of population that suffers from chronic illness are putting large pressure on the healthcare system. South Africa has a high demand in smart medical technologies, diagnostic applications, training for health professionals and nutritional products.
• The fintech sector in South Africa is the third most rapidly growing in the world. The financial and business ecosystem is supporting innovative ideas, therefore it is relatively easy to find partners and opportunities. In addition, the promising growth service areas are wholesale, retail banking and insurance.
• Due to the Trade, Development and Co-operation Agreement between South Africa and the EU, there is a free trade area that covers 90% of bilateral trade. South Africa imports crude and refined petroleum, cars, computers, broadcasting equipment, packaged medicaments, corn and wheat. Consider one of these goods for local production or trade.
• South Africa has a growing demand for food and a large pool of agricultural workers. Due to aridity of the land, only 13.5% of it can be used for crop production, however, herb, vegetable and fruit growing as well as dairy and poultry farming are seen as good sectors for business. Additionally, crowd farming (collective investment into a farming venture) is growing in South Africa.
• In the last five years, the size of the middle class has almost tripled and the demand for private education services, both academic and extra-curricular, increased significantly.