South Africa’s booming Global Business Services (GBS) sector continues to expand, creating more than 14 000 new job opportunities between January and September 2024, with over 12 500 of those positions taken up by the country’s youth.
The sector, which has also generated nearly R13.6 billion in export revenue during the same period, is on track to create 500 000 new jobs by 2030, according to Business Process Enabling South Africa (BPESA), the national industry body for GBS.
This job growth is a key part of the GBS Sector Master Plan, a national initiative aimed at creating a thriving job market, particularly for young South Africans.
The plan is a collaboration between the Department of Trade, Industry and Competition (the dtic), BPESA, and Harambee Youth Employment Accelerator.
Speaking at BPESA’s Annual General Meeting this week, BPESA chairperson Zain Patel gave an insight into the growth of the sector, noting that 10 new international Business Process Outsourcing (BPO) operators had chosen to invest in South Africa in the past year.
“This reaffirms South Africa’s position as the third most attractive offshoring destination in the world for prominent international firms in the telco, retail, healthcare, technology and financial services sectors,” he said.
Patel said: “This is a major win for South Africa’s economy and our young workforce. With key international firms investing in South Africa, we are securing a future where youth employment is a cornerstone of economic growth.”
Since the launch of the GBS Sector Masterplan in early 2022, South Africa has attracted 30 international investors, 22 of which have already committed to investing in the country. BPESA CEO Reshni Singh expects these investments to create between 13 000 and 17 000 new jobs over the next 18 to 24 months.
Building Global Competitiveness and Expanding Opportunities
Singh said South Africa is making significant strides in boosting its global competitiveness within the GBS sector. With support from the dtic, the government is enhancing South Africa’s appeal to international businesses by reviewing the GBS Incentive Programme and refining the country’s value proposition, particularly in key markets like the United Kingdom and the United States.
“On average, South Africa is significantly more cost effective than markets such as Poland and Malaysia. Initiatives such as the GBS Incentives and cost management strategies aimed at attracting and retaining international clients, have also made the country comparable with locations such as Jamaica, Egypt and The Philippines, which are our main competitors,” said Singh.
The government’s role in strengthening the sector is critical, with provincial and local governments working to develop new business hubs outside major urban areas. Projects in the Eastern Cape, including in Gqeberha and East London, alongside Gauteng’s Township Economic Regeneration Plan, are aimed at fostering investment and creating economic opportunities in underdeveloped regions.
Infrastructure Growth and Future Opportunities
In addition to job creation, the sector’s success is being supported by significant infrastructure developments. The establishment of a “plug-and-play” BPO park in the COEGA Special Economic Zone, along with expanded broadband access and hybrid work models, aims to ensure sustainable, long-term growth for the GBS industry.
Singh said: “The dynamic landscape of global business services is constantly evolving, with factors like AI and changing market conditions bringing both challenges and opportunities As BPESA Our goal is to ensure South Africa not only attracts but also retains international investors.
“We are dedicated to building a sustainable ecosystem that empowers local communities and enhances our global competitiveness. Our commitment to innovation and skills development is unwavering. Under the guidance of the dtic, and partnership with Harambee Youth Employment Accelerator, we are fostering a promising future, positioning South Africa as a powerhouse in global business services,” said Singh.
BUSINESS REPORT