The world has never been as technologically advanced and connected as it currently is, therefore, the markets are evolving, and industries must adapt to these changes. We have seen notable growth in the following sectors in the South African market.
Pharmaceuticals and healthcare sector
The pharmaceutical and healthcare sector has shown the largest growth amongst all sectors. The focus of pharmaceutical companies is to provide medicines for consumers, and to research, develop and distribute drugs. Vaccines and ARVs for HIV infection have accounted for more than 50% of total public health sector expenditure on pharmaceuticals. While almost 70% of the pharmaceutical products that are used are locally-produced, various active pharmaceutical ingredients and finished products are imported. Demand for sanitisers and hygiene products in response to coronavirus has seen a number of non-specialist producers and suppliers enter the market (Businesswire).
Transport and logistics sector
The logistics sector contributes about 10 to 12% of the total GDP. South Africa tops the list for having the most developed transport and logistics sector in Sub-Saharan Africa placing it on par with some of the world’s industrialised countries (PWC). Both local and international companies utilise South Africa as a gateway for their operations into Africa.
Finance and banking sector
Since more consumers are utilising online banking Apps, mobile banking Apps, performing more electronic funds transfers(EFT’s) and using e-wallet services, the banking and financial sector has been forced to evolve to meet the needs of its clients. According to Businesstech, the total banking sector assets grew by 16.36% year on year, to R6.6 trillion at the end of March 2020 (March 2019: R5.7 trillion). This was spurred by an increase in gross loans and advances, derivative financial instruments, and investment and trading securities (mainly government securities and other dated securities).
Information, Communications and Technology sector
South Africa is a leader in the Information, Communications and Technology (ICT) sector on the African continent. Our ICT products and services are expanding rapidly into neighbouring countries. The rollout of fibre and cheaper data costs have also increased the capacity for growth in the ICT industry. The banking and financial sectors rely heavily on the ICT sector to promote innovation in online banking and mobile money solutions. The country’s cell phone market is also growing at a rate of 50% per year which makes it the fourth fastest growing in the world. The Government has allocated a significant portion of its budget towards the Fourth /Digital industrial Revolution to position South Africa as a competitive global player. The goal of this initiative is to create programs to train a million youth in Robotics, Artificial Intelligence, Cloud Computing, Coding and Networking. Smart city projects which are implementing innovative technologies, have begun in Cape Town, Gauteng and Durban. The Internet of things, Machine-to-machine communications and cloud- based software products are forecast to grow in South Africa. Several foreign countries are keen on investing in this sector since it has the potential for phenomenal growth.
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