South Africa has 3 business sectors known to survive or offer better opportunities to their clients in a recession. They include:
Whether it is real-world or cyber security, both commercial and private asset owners become significantly more risk averse during times of economic recession and uncertainty.
While most sectors see a decrease, the security industry will continue to grow. South Africa’s has a R45 billion security industry with a growth rate of 15% per year, making it the largest in the world.
The industry has seen a substantial increase in start-ups proving that new tech-savvy and better support services to customers will pay off.
Similarly, the realm of cyber security in SA is seeing heightened demand amid increasing threats. However, the required skills remain scarce in the country, and businesses that offer solutions that can bridge this skills gap could see an increasing number of opportunities in the coming years.
Death care services
The estimated value of the funeral industry in SA is between R7.5bn and R10bn.
The funeral industry has shown that it will survive tough times.
It’s been proved that businesses that offer services related to death, including funerals, cremation, burial, memorials, and manufacturing of tombstones, caskets and relative services are usually some of the most recession-proof operations. Death care services have a steady stream of business, regardless of the economic climate.
Private education is a growing market in SA, and even in the tough economic conditions experienced in recent years, the demand for more and better alternatives to the public education sector has increased significantly.
It is also reported that SA is experiencing skills shortages in almost all of its sectors, emphasising the need for service providers that offer more effective, affordable and accessible adult education.
"Businesses that offer accredited online training platforms have especially seen increasing interest in SA, as well as on the rest of the African continent.
Article from Fin24 interview with CFO of Buisness Partners Siphetke Dumeko