MEDIA STATEMENT - SA’s Global Business Services Sector on track to create 500 000 jobs by 2030
- January 30, 2025
Sector creates over 14 000 new jobs and contributes R13,6 billion in export revenue in first nine months of 2024, reinforcing the sectors vital role in combatting youth unemployment across the country.
Johannesburg, 30 January 2025: –South Africa’s fast-growing Global Business Services (GBS) sector created over 14 000 new jobs between January and September 2024, with 12 564 of those taken up by the country’s youth, The sector, which contributed just under R13. 6 billion in export revenue during the same period, is on track to create 500 000 jobs by 2030. This is according to BPESA, the national industry body for the GBS sector.
The ambitious job targets are part of the GBS Sector Master Plan, an initiative spearheaded by the Department of Trade, Industry and Competition (the dtic) with BPESA (Business Process Enabling South Africa) and Harambee Youth Employment Accelerator .
The latest figures were unveiled at BPESA’s Annual General Meeting (AGM) held yesterday. BPESA CEO Reshni Singh also revealed that in the last year 10 new international Business Process Outsourcing (BPO) operators had chosen to invest in South Africa, entrenching its 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.
This can be attributed, in part, to numerous market activities spearheaded by BPESA with the support of the dtic, Invest SA, Harambee and other government and industry stakeholders. These activities are tailored to key international source markets such as the United Kingdom and the United Sates. 51,2% of globally-focused workers service the UK market while 30,4% service the US market.
“Since first quarter of 2022, which is when the sector masterplan was officially launched, we have managed to attract 30 international investors to our shores of which 22 converted to invest in SA made up of 12 Business Process Outsourcing Operators and 10 end user clients. We expect they will create between 13 000 and 17 000 new jobs in next 18-24 months, which is a fantastic success story for the sector and the country,” said BPESA CEO Reshni Singh.
Elevating Global Competitiveness According to Singh, significant strides are being made towards advancing South Africa's demand-side commitment goals under the GBS Sector Master Plan. “South Africa’s efforts to strengthen its global competitiveness in the GBS sector have yielded some positive shifts. The Department of Trade, Industry, and Competition (the dtic) has played a
pivotal role in supporting the industry to remain globally cost-competitive by undertaking a review of the national GBS Incentive Programme as well as a refresh of South Africa’s Value Proposition which has been enhanced with specific strategies for source markets like the United Kingdom and the United States,” she said, highlighting the strength of public private partnerships to win, grow and retain business in South Africa.
“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.
Advancements in infrastructure
Provincial and local governments are actively working to develop additional business locations outside the main urban centres (Tier 1 and Tier 2 locations), with the Eastern Cape and Gauteng leading initiatives to foster investment and drive economic growth. The Eastern Cape Development Corporation is piloting projects in Gqeberha and East London, while Gauteng has introduced its Township Economic Regeneration Plan.
Critical infrastructure developments are underway, including a plug-and-play BPO park in the COEGA Special Economic Zone and expanded broadband access to key locations. By partnering with community facilities, South Africa is transitioning towards hybrid work models that inclusively accommodate work-from-home setups.
Towards a sustainable ecosystem
“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,”
