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March 12.2025
3 Minutes Read

How KPMG Survey Reveals Business Opportunities for German Firms in South Africa

Mobile news on German business opportunities in Southern Africa.

Optimism Amidst Challenges: German Companies in Southern Africa

In the wake of South Africa’s recent national elections, a new survey reveals a cautiously optimistic outlook for German businesses operating in South Africa and the broader Southern African region. Conducted by KPMG Germany in collaboration with AHK Southern Africa, the ‘German-Southern African Business Outlook 2025’ offers critical insights into the professional climate and investment attitudes of German firms.

Survey Insights: Key Findings from the KPMG-AHK Survey

From November 11 to December 31, 2024, KPMG and AHK engaged 98 companies to explore the pressing challenges and opportunities facing businesses in the region. The results indicate a significant degree of optimism: 64% of participants in South Africa expect an increase in sales within the year, while 58% in the wider Southern Africa region echo this sentiment.

Profit expectations are also uplifting, with 48% of South African respondents anticipating higher profits—this reflects a gradual turnaround as businesses adapt to economic challenges. Furthermore, 44% of firms plan to invest in South Africa over the next three years, with at least €3 million earmarked for projects by 10% of these companies. In contrast, investment interest wanes in other Southern African countries, where only 20% express investment plans.

The Impact of Political Stability on Business Growth

The survey's responses suggest a strong correlation between enhanced political stability and business growth. Almost all respondents (77%) believe the recent election outcomes will favorably impact the economic environment. However, 65% anticipate that improvements will be moderate, illustrating a tempered perspective. Business leaders are hopeful that the newly formed Government of National Unity will spur necessary reforms for sustainable growth as they work to address longstanding issues in infrastructure and crime.

Corruption and Infrastructure: A Business Imperative

As noted by Andreas Glunz, KPMG Germany’s managing partner for international business, one of the most pressing tasks for the new government is to systematically combat corruption and crime. This sentiment resonates with 46% of surveyed companies identifying this as a paramount focus for improvement, clarifying their critical concern for the local business environment. Investment in infrastructure modernization—favored by 39% of firms—also appears essential to facilitate economic expansion.

Challenges Driving Innovation: The Role of Technology

In a world increasingly driven by technological advancements, German businesses are exploring digital solutions as they navigate local challenges. Areas such as cloud computing, data analytics, and cybersecurity are gaining traction, reflecting a need to innovate amidst infrastructural gaps.
For many firms, adapting technologies—like IOT devices for supply chain improvements or AI tools for decision-making—serves as both a response to immediate challenges and a catalyst for long-term growth.

Future Predictions: What Lies Ahead for German Enterprises

As businesses look beyond immediate recovery, the forecast for growth hinges on the government’s ability to stabilize political and economic conditions. The formation of a united government has reinvigorated hopes. Many German companies see South Africa as a gateway to expanding markets across sub-Saharan Africa, capitalizing on a youthful demographic and untapped resources.

While optimism prevails, industry players must remain cautiously vigilant, embracing innovative strategies and digital transformation frameworks that encompass automation, digital skills, and responsible tech investments. A holistic focus on cultural and social adaptation will serve as a foundation for creating robust business ecosystems ready to adapt dynamically.

Conclusion: Embracing Opportunities Amidst Uncertainty

In summary, the KPMG-AHK survey reflects a complex yet promising landscape for German companies in Southern Africa. The confluence of political change and economic opportunity beckons resilience and innovation from business leaders. Understanding and integrating advanced technologies, fostering public-private partnerships, and tackling systemic challenges will determine the region's future success. As executives and professionals hone their strategies, continuing to monitor evolving conditions will be crucial for sustaining growth and tapping into Southern Africa's full potential.

Stay informed and be part of the change—understand how you can engage with the technological advancements that may redefine business landscapes. Join the conversation today by exploring more insights on innovations in the region.

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07.18.2025

Project Spark: Balancing Energy Needs and Technology for Southern Africa's Future

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07.17.2025

Africa's Payments Market Set to Hit R27 Trillion by 2030: What This Means for Professionals

Update A Transformative Wave: Africa's Payments Market to Reach R27 Trillion by 2030 In a rapidly evolving financial landscape, Africa's payments market is poised to reach a staggering R27 trillion by 2030. This forecast speaks volumes about the ongoing digital transformation within the continent, significantly affecting economic growth, technological advancement, and financial inclusion. The shift toward digital payments is not merely a trend; it embodies a profound transformation within both the consumer landscape and the financial systems that support it. Understanding the Catalysts of Growth The $27 trillion forecast is not an isolated figure but a result of several driving forces. Foremost among them is the surge in smartphone usage across Africa, which enhances access to digital payment platforms. As companies like Paystack and Flutterwave gain prominence, facilitating easy transactions, this disruptive innovation poses a challenge to traditional banking systems which have historically struggled with accessibility and high costs. Moreover, initiatives by various governments aimed at improving financial literacy and reducing regulatory hurdles are making it easier for both businesses and consumers to engage with digital payment systems. From the National Development Plan in South Africa to initiatives led by the African Union, these strategies are fueling an economic landscape conducive to payment modernization. Potential Socioeconomic Impact The financial expansion heralded by this growth is expected to have far-reaching socioeconomic implications. Increased access to digital payments can empower underrepresented communities, enhance economic participation among women and small businesses, and ultimately contribute to a more balanced economy across demographics. Financial integration is essential for alleviating poverty and driving sustainable development, aligning with the African Union’s Agenda 2063 vision. Challenges Lie Ahead: A Call for Vigilance While the prospects seem promising, there are challenges that demand attention. Issues such as cybersecurity threats, privacy concerns regarding data management, and potential regulatory hurdles could impede this anticipated growth. Moreover, as Africa integrates more into the global digital economy, inconsistencies in policies regarding cryptocurrency and digital finance need to be addressed to prevent an influx of financial crimes that could destabilize burgeoning markets. Market Adaptations: Embracing Change Industries must adapt rapidly to these market transformations. Financial institutions are tasked with reinventing their services to ensure relevance in a payment landscape increasingly defined by efficiency, security, and user experience. The role of fintech in developing innovative solutions that anticipate customer needs will be crucial. Companies like NIBSS in Nigeria are already showcasing effective models of collaboration to streamline payments and address issues specific to the region. Imagining the Future: Predictions for 2030 Looking ahead, the payments market is unlikely to be static. With trends pointing towards the integration of Artificial Intelligence and machine learning for enhancing consumer experiences, as well as the incorporation of blockchain technology for superior transaction security, these tools will revolutionize how payments are processed. By 2030, we could witness an era where traditional banking systems exist harmoniously with decentralized payment platforms, allowing for unparalleled levels of financial inclusion. Conclusion: Building a Resilient Financial Ecosystem The projected R27 trillion payment market in Africa signifies a pivotal moment not only for financial services but also for broader economic evolution across the continent. As individuals and professionals, we must remain vigilant to foster a secure, inclusive environment that champions innovation while safeguarding the interests of all users. Staying abreast of these developments is vital as Africa sets itself on a trajectory towards economic resilience and growth. It is essential for industry stakeholders, policymakers, and, importantly, consumers to engage actively in these discussions to shape a financial future that is equitable, effective, and prepared for the digital age.

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London Mayor Sadiq Khan's Visit to Lagos: A Cultural and Tech Revolution

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