BPESA

background invest in sa

One of the leading economies in Africa, with a well-developed infrastructure and established trade links with the rest of the continent, South Africa is a suitable base for servicing a global customer base, while also providing access to the rest of Africa.

Should you require more information on setting up business in South Africa, please contact us on This email address is being protected from spambots. You need JavaScript enabled to view it. / 083 657 3112.

Brands currently in south africa

We have collated detailed information to assist you on your decision making process.

 

South Africa's BPO Value Proposition

South Africa has a large availability of good quality English speaking talent with high empathy, cultural affinity, and niche domain skills, which have led to success in next generational service delivery.

Good quality, English-speaking talent

  • Availability of highly skilled, English-speaking talent pool with neutral accent and very high empathy levels
  • Additional talent pool through impact sourcing
  • Cultural affinity with UK, Australia, and, increasingly, the US
  • Recognized domain knowledge in the banking and financial services sector
  • Availability of talent across multiple global delivery location options across the country

Significant costs savings

  • Cost of operations are at least 50-60% lower than those in England and Australia for both voice and non-voice work
  • Incentives further reduce the costs to bring them in range of costs in the Philippines and India

Strong foundation in contact centre and niche areas of work

  • Apart from contact centre, which has been one of the key strengths of South Africa’s BPO industry, the scope of international delivery has expanded into non-traditional areas of work, such as financial services, legal process services, and healthcare

Evolving capabilities for next-gen services for digital contact centre

  • South Africa is pivoting towards delivery of next-generation of contact center and digital services
  • In the core strength of contact center, companies have successfully demonstrated capabilities for high quality multi-channel customer experience, supplemented by deep customer analytics

First world infrastructure and enabling environment

  • High quality of life with superior business and operating environment infrastructure
  • A wide variety of government support in areas of skill development and infrastructure incentives for increasing investment in the BPO sector
  • Global contact center standards – ISO 18295 are based on South African standards (the global standard development was led by South Africa)

Value Proposition

Incentives

Large Talent Pool

There is a high availability of proficient English talent in South Africa, both written and spoken, with neutral accents and very high empathy levels. The current population of English speakers in the country is estimated to be 16.5 million with 410,000 English speaking individuals added to the national workforce each year. The youth population in the country (aged 18 – 35 years) is estimated to be 17.6 million. There are also pools of foreign speaking individuals that can service the Dutch, German, French and Italian markets.

BPESA Large Talent Pool Infographic

Deep Domain Skills

South Africa prides itself on its ability to offer both entry level customer service work as well as complex back office and niche domain services.

BPESA Deep Domain Skills Infographic alt

Cost

South Africa offers major cost savings to source destinations such as the Australia, the UK and the US of at least 40 - 45% on a steady-state operating basis (including overheads). This is supplemented by a national BPS incentive through the Department of Trade and Industry (dti) which pays prospective investors up to R290,000 per job created.

BPESA Cost Infographic

Infrastructure

South Africa’s infrastructure is world class, from road and power through to education, healthcare and entertainment, making it a conducive business and investment destination.

BPESA Infrastructure Pictogram

Robust Enabling Environment

The South African government works closely with the private sector, industry bodies and investors to create an enabling business environment. This is augmented by key partnerships between the industry association and international bodies such as the Rockefeller Foundation, the Global Impact Sourcing Coalition (GISC) and the International Association of Outsourcing Professionals (IAOP).

BPESA robust enabling environment infographic050619

Lifestyle

South Africa is one of the most beautiful countries with a lifestyle to match. From fine dining to outdoor adventures to world class schooling, it’s an expat experience that is hard to beat. Below are some details and links that will give you a window into why South Africa is one of the best places to live in the world.

BPESA Lifestyle Infographic lr

FIND OUT MORE ABOUT OUR REGIONS AND WHY THEY ARE
ATTRACTIVE TO INVESTORS

 

Land, Mobile, Internet

South Africa’s telecommunications infrastructure is considered to be the continent’s most advanced in terms of technology deployed and services provided, with a network that is 99.9% digital and includes the latest in fixed-line, wireless and satellite communication.

BPESA Land Mobile Internet Infographic

*Source: ICASA

 

Broadband Connectivity

“South Africa Connect” is the government’s national broadband policy and associated strategy and plan. The vision for broadband in South Africa is “a seamless information infrastructure by 2030 that will underpin a dynamic and connected vibrant information society and a knowledge economy that is more inclusive, equitable and prosperous.” Targets set for 2030 include a 100% penetration at 10Mbps and 80% penetration at 100Mbps.

This information has been supplied by Internet Solutions.

 

 

Fibre Network

South Africa’s fibre network is extensive and currently connects the major metropolitan areas of Durban, Cape Town, Johannesburg, Pretoria/Tshwane and Port Elizabeth with other major cities and business centres nationally, regionally and globally.

BPESA Fibre Network Infographic

 

Global Links: Undersea Cables

South Africa’s total international internet bandwidth (Mbps) capacity increased by 61.7% from 2016 to 2017. According to ICASA, international outgoing bandwidth increased by 81.2% to 244,006 Mbps and incoming Internet increased by 50.9% to 366,394. South Africa’s undersea cables link the country to the global communications grid and include:

CABLE

CAPACITY

East African Submarine Cable System (EASSy) 

  10 Tbps (10,000 Gbps)

West African Cable System (WACS)

    5 Tbps   (5,000 Gbps)

Seacom

  12 Tbps (12,000 Gbps)

SAT-3/SAFE

    0.78 Tbps (780 Gbps)

SAex

  72 Tbps (72,000 Gbps)

 

The following infographic shows how Internet traffic from a local device reaches an international server as well as the different connection points of the undersea cables across the African continent.

BPESA Undersea Cables Infographic reduced

EASSy
The Eastern African Submarine Cable System, better known as EASSy, went live in July 2010. The 10,000km EASSy cable system connects South Africa to Sudan and connecting cable networks in Europe, Asia and the Americas. The EASSy cable system has a capacity of 10 Tbps.

WACS
The West Africa Cable System (WACS) was launched in May 2012 with a design capacity of 5.12 Tbps. The 17,200km WACS fibre optic submarine cable system spans the west coast of Africa, starting at Yzerfontein near Cape Town, South Africa and terminating in the United Kingdom.

Seacom
The Seacom 15,000km cable system runs on the East Coast of Africa, and connects South Africa to London. Seacom launched with  adesign capacity of 1.28 Tbps, and increased its capacity to 12 Tbps in May 2014.

SAT-3/SAFE
SAT-3 connects South Africa with Europe on the West Coast of Africa, while SAFE provides redundancy on the East Coast by connecting the country to Malaysia. SAT-3 has a capacity of 340 Gbps while SAFE has a capacity of 440 Gbps.

South Atlantic Express (SAEx1)
The South Atlantic Express (SAEx1) is a 72 Tbps submarine cable system connecting South Africa directly to the US, Brazil and the US, with branches to Namibia and Saint Helena.

 

Telecom Costs

As a result of liberalisation measures as well as the significant number of international submarine fibre optic cables landing in South Africa, the cost of telecommunications has reduced considerably in recent years and this downward trend is expected to continue.

  • Landlines: the average cost of a landline is around R200 ($14) per month, with combined phone and Internet packages starting at around R600 ($42) per month.
  • Mobile phones: 90% of the national territory is covered by a GSM network. Most major international phones work in the country.
  • Internet: coverage in South Africa is mostly restricted to urban areas and some users are restricted to dial-up as broadband availability is limited, though improving. Prices start at around R700 ($49) a month.
  • Wireless broadband: is available in the cities and hotspots are ubiquitous in hotels, cafes, and other public areas.

Services Available

Poor

Satisfactory

Good

Indicative Pricing

Internet

 

 

Good

1 Gbps unlimited data
$1,600 - $1,800 per month

VoIP

 

 

Good

$0,14 per minute

Mobile

 

 

Good

$0,05 - $0.21 per minute (local) 
$0,36 per minute (international)

Fixed Line

 

 

Good

$0.02 - $0.04 per minute

Wireless

 

 

Good

$40 for 100 GB of data per month

 

 

Office Grading

Commercial property in South Africa is generally referenced as either Premium, A, and B grade offices. These can be explained as follows:

  • Premium Grade (P): Top quality, ultra modern, new development, high rise or secure office park environment, good parking ratio, superior finishes, security and location.
  • A Grade (A): Modern office building, high rise or office park environment with good parking ratio, superior finishes and good security.
  • B Grade (B): Generally older buildings but with modern finishes, refurbishments and rennovations, on-site parking.

Office Rentals and Operating Costs

The office rentals applicable to the commercial building grades are as follows:

Province

Grade

Average Monthly Rentals

Cape Town

P Grade

R250 ($17.28) per m²

Durban

P Grade

R210 ($14.52) per m²

Joburg

P Grade

R222 ($15.35) per m²

Pretoria/Tshwane

P Grade

R195 ($13.48) per m²

Port Elizabeth

P Grade

R145 ($10.02) per m²

Cape Town

A Grade

R143   ($9.89) per m²

Durban

A Grade

R140   ($9.68) per m²

Joburg

A Grade

R144   ($9.96) per m²

Pretoria/Tshwane

A Grade

R135   ($9.33) per m²

Port Elizabeth

A Grade

R115   ($7.95) per m²

Cape Town

B Grade

R127   ($8.78) per m²

Durban

B Grade

R131   ($9.06) per m²

Joburg

B Grade

R117   ($8.09) per m²

Pretoria

B Grade

R103   ($7.12) per m²

Port Elizabeth

B Grade

R93     ($6.43) per m²

 

Escalation on rentals
On average 8% to 9% per annum

Parking Bays
R700 (R48) to R1500 ($104) per month/reserved single basement bay

Utilities
R47/m² ($3.25) to R55/m² ($3.81) per month for general office consumption costs

Water
R19.25 ($1.33) to R30 ($2.08) per KL for commercial consumption

NOTE: All figures exclude VAT at 15%.

 

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