A lot of investors in South Africa are looking for new investment opportunities in 2021 to diversify away from what has been existing. Since the pandemic, many people lost their jobs in the process, some got pay cuts while some had a low return investment due to low demand for products. So due to these reasons, many are looking for ways to invest in the developed market or new emerging market trends of investment that can work for them or some untapped investment in the country that can help to beat poverty for them and also help to develop the country’s market. There are a lot of untapped investments in the country because Africa as a whole has many potential resources and raw materials that can be turned into investment and people are not aware of it yet or maybe they are not just seeing it as something that can be possible and South Africa is one of the most resourceful and developed countries in Africa but many are scared to take the risk or maybe it is just fear of the unknown, the truth is if we don’t try we can’t know which one is going to yield many returns for us.
The big question everyone wants to have an answer to is, where can I invest in South Africa that will be worth the risk?
Here are 10 investment opportunities in South Africa in 2021
- Online Marketing
Let’s start from scratch, you may be thinking about what type of investment is working online or how will this investment work for you. This is a small business/investment opportunity that will take little or nothing from you. All it requires is skills, time, access to the internet, and creativity. Almost everyone’s businesses are now on the internet and everyone has access to the internet to do their shopping. There are a lot of social media platforms that have provided so many people with digital jobs of marketing from Facebook, Instagram, Twitter, YouTubes, emails, Search Engine Optimization to freelance writers. Starting online marketing is very cheap and as of today, it is one of the best investment opportunities in South Africa and technology is the most dynamic and growing sector in the country. You can have jobs online and still have some major work you do that is a physical business. The advantage of working online is that you can work at your own pace at the comfort of your home and still be earning from some other business sources.
There is a huge investment opportunity in the Agricultural sector. Farming has never been a waste of time in South Africa because most people in the country depend on locally produced food. You can easily get good investment returns with large profits when you dedicate and invest in small-scale farming either through crop farming, livestock farming, urban farming, or sustainable farming. Small-scale farming is something that has been consistent with farmers all over the continent and will never go out of trend. The investment can be to provide more farm inputs to the small-scale farmers, to provide sustainable service, and also to make their farm produce get to market easily with the establishment of farm machinery like coops.
3. Education and Training
Education is one thing in South Africa that can never be over-flogged. Education has always been a good investment for both the government and private sectors. Both sectors require a large budget to improve their education system in terms of providing good facilities and a standard learning environment. Every parent wishes to send their children to the best schools with quality standards and facilities for learning. After learning in schools of various levels, many still want to acquire skills that can help them have a good stand-in society due to the high demands of those skills. Virtual education and training platforms have also gained popularity over the years which can also be a good investment opportunity.
4. Infrastructure or Real Estate Investment
Construction and upgrading of major facilities and services in the country are on the rise. The government is trying its best to meet up with the construction and building of some basic services that will benefit its citizens such as water construction, roads, bridges, electricity, low-cost housing, recreation area, sewage plants, and even some government buildings that need some renovations. This will create an opportunity for some small contractors that can have their way through. It is an opportunity that can give a good return and create a lot of wealth for startups building contractors.
There is a huge demand for the construction of new residential and commercial estate in the country. We now have more people moving to the cities daily and a lot of them are looking for accommodation that will suit them. People can invest in buying lands because the demand for lands and properties is increasing each day.
5. Business Financial Investment and Consultancy
In South Africa, there are many new innovative and creative entrepreneurs that have multiple business ideas but lack the capital to start any of the businesses. Providing startup capital to entrepreneurs in South African is now an investment that has a high demand. The commercial banks in the country charge too high-interest rates for business loans with a very short repayment period. These repayment conditions from commercial banks discourage many startups or existing entrepreneurs from borrowing money. You can establish a financial market in that area of need for any private business. Although, it may be a risky business if you don’t have proper laydown conditions, and also you need to ensure that the loans you give are used for the stated purpose alone. You can also liaise with loan regulatory bodies for an easy way of restoring your money.
You can as well be a business and financial consultancy management for business startups and those that will like to advance in their businesses.
6. Car Investment and Rentals
You can decide to invest in a car for setting up a cab business. This business is now in high demand especially in big cities in South Africa. Majority of people in the country even companies now prefer cabbies for their long and short-term journeys. You can start up your own transportation company, have your brand name just like Uber or join a company that hires car owners and their driving services to earn a good return. You must have a good existing driving record to succeed in this business line and also ensure that you have a high level of vehicle safety.
You can as well own a car rental service as this business is a very profitable one now in South Africa.
7. e-Sports & Gaming Centers
We know that many young adults now prefer gaming to any other things that bring fun to them. Virtual sports and video gaming have now become a norm among the South African youth and it is gaining more population every day as it is the highest most valuable industry among the youths and we know that the youths have the most significant number of the population in South Africa. The market has opportunities for anyone ready to invest in it now and even much greater in the years to come.
8. e-commerce Store
It is now possible to sell multiple products online by having your established e-commerce store. As we know that e-commerce only attracts strategic and eligible buyers. During the pandemic in 2020, there was a sudden rise in the e-commerce market up to about a 75% increment. The marketing opportunities in having an e-commerce store are endless as this is the store a lot of people want to buy from because it is fast and stressless. All you need to do is to set up a store online, have great products on it, get affiliate marketers and then have a good strategy to become the leading online seller.
9. Rental Properties
Investing in the rental real estate market is an ideal thing to do in 2021. This area of investment has the best returns presently in South Africa. You can make money in the residential real estate market in several amazing ways, which include, owning and renting residential properties, leasing properties, making home improvements, flipping houses, renting commercial properties, mortgage notes, and investing in real estate.
This area of investment is very lucrative. South Africa is very rich in natural resources and the majority of them are yet to be exploited. Despite all the mineral wealth owned by the South Africans, enough investment has not been done to benefit from it, the mineral resources are not just for the stakeholders but the whole country. This is a huge investment opening for potential investors who are ready to tap from this mining business. Coal mines are a good area to focus on as it is increasingly in demand.
The investment opportunities in South Africa listed above are just a few of many big opportunities that you can explore in 2021 or years to come. You might not find it easy to start any of the listed investment ideas due to financial or other reasons like interest, skills, knowledge, and connections. You might even want to learn more about other investment opportunities that were not mentioned in this article, maybe you can find the one that suits you.
At Shikana Group, our goal is to help startups realize their dreams of getting good investment returns for any business investment. We are established to help business owners and startups succeed in their various businesses through our business training programs, strategic business advisory, and also other business opportunities that are directed to them within Africa.
We also focus on examining the key factors that can help to drive sales and expansion for any chosen business. We help in capturing the important market trends that drive sales and growth in the country.
Contact us at the Shikana group today to be part of the members who have been scaling high in their various investments. You will be glad you joined.