2025 is set to be a transformative year for businesses in South Africa, with industries weathering new challenges and opportunities driven by global trends, technological advancements and mixed market dynamics. From shifts in how people work to tariffs and emerging risks, business leaders suggest these seven trends highlight how key sectors will adapt in 2025.
1: More e-commerce growth
"South Africa’s e-commerce market has seen significant, multi-year growth and is showing no signs of slowing down, but this places increased importance on the need for improved security," says Rahul Jain, CEO and founder of Peach Payments.
“The rise of e-skimming and other cyber threats require merchants to secure their entire digital environment. The introduction of PCI DSS v4.0 in 2025 aims to improve security and anti-fraud measures. But it means that merchants will need a payment provider that can help them adopt these new industry standards,” Jain says.
2: Zero-emissions transport
The momentum behind vehicle electrification, once driven by overwhelming optimism, is starting to plateau, according to GoMetro CEO Justin Coetzee. He says the path to zero emissions is proving to be far more challenging than anticipated, requiring substantial investments in infrastructure, innovation and regulatory alignment.
In addition, China, the world’s dominant producer of electric vehicle (EV) technology, faces tariffs and protectionist policies from major markets such as the European Union and the United States. This will have a profound effect on the EV sector in the coming year, Coetzee says.
He predicts that China will redirect its EV exports to emerging markets: “I believe Africa will become a major recipient of these exports. While this shift may slow down the pace of EV adoption in the EU and US, it will likely accelerate growth in Africa.”
3: High EQ contact centres
Costs have always been a driver in the contact centre industries, with more developed countries outsourcing this function to developing nations like South Africa, India and the Philippines to save costs. Ryan Falkenberg, CEO of CLEVVA, says with increasing political pressure to keep jobs in-country, more companies will look to invest in a digital agent force that can automate their calls from within their borders.
“This may significantly reduce the operational call volumes being outsourced but it also increases the value of human agents that handle the more complex, emotionally-charged conversations. In South Africa where our human agents in general have high EQ, this could be an opportunity to differentiate and grow higher paying jobs,” he says.
4: AI in insurance
Charlotte Koep, CEO of Root Platform, says corporations are increasingly looking to streamline systems into single-point platforms that offer more value and are more easily managed.
“Companies want one system that solves a number of their niche industry problems. Platforms offer the perfect opportunity to access an ecosystem of solutions, including services powered by AI. Having the option of incorporating AI to enhance the value chain one service at a time allows for rapid experimentation and feedback loops for iteration. For example, AI has already made significant strides in the claims space, offering customers a faster, more streamlined experience and we expect more players to emerge as the technology matures,” she says.
5: Better cloud connectivity
With fibre infrastructure still extremely limited in South Africa, connectivity expansion will be a gamechanger for the telecommunications industry in 2025.
Says Warren Hawkins, Managing Director of Euphoria Telecom: “Fibre infrastructure still does not reach all areas, posing a barrier to widespread adoption of cloud solutions. The anticipated rollout of technologies like Starlink could provide stable, high-speed connectivity to underserved regions, accelerating the shift toward cloud-based systems.”
"This expansion will also drive the shift away from ageing, legacy telephone systems to cloud-based ones, enabling more modern and efficient solutions," he says.
6: Independent professionals
In 2024, there was a real shift towards talented professionals choosing to go it alone as independent contractors, which is set to continue in 2025.
Johann van Niekerk, founder and CEO of Outsized, says: “In 2025, we anticipate this movement will not only persist but accelerate, creating a shift in how organisations approach talent and workforce models. Professionals are increasingly looking for flexibility, variety and control over their careers, leading them to freelance or consulting roles where they can build a portfolio career.”
For businesses, this means becoming more agile and talent-centric to properly engage with talent.
7: Tougher funding for African startups
Startups will feel the impact of global socio-economic conditions when it comes to funding, says Caroline van der Merwe, co-founder and Chief Product Officer for Jem HR.
“The way startups are seen and the way investors interact with them is affected by the macro economy. African startups are the first to suffer when there’s a funding dry-up. African founders are held to a much higher standard and we are measured on Dollar annual revenue figures. Sentiment also plays a huge role in whether people even invest in emerging market startups. Our next round will likely have to attract foreign investment because beyond early stage investment, there isn't a lot of money available on the continent,” she says.
