SA’s rising star sector predictions 2021
Following some serious market research, LIV Consulting was able to put together some predictions on SA’s rising star sectors for 2021. Here they are:
1. E-Commerce
B2C e-commerce will generate approximately $4.5b in revenue for the South African market. This said its highlighted that only 2% of the SA market is currently using e-commerce. As a result ,there is large untapped market with a lot of opportunity for e-commerce growth. No wonder this is seen as one of SA’s rising start sectors for 2021.
2. Green Economy
Green economy growth, in particular energy will see a rapid increase in demand in the next three (3) to five (5). Independent power producers (IPP) and procurement of their services are becoming increasingly popular alternatives for the supply of power. This comes into effect as concerns increase over the lack of consistency and capacity from Eskom, power supplier to South Africa. As a result, predictions for green economy in 2021 include IPP’s supply of 2GW of power, wind power & green-tech.
3. Edtech Solutions
Edtech solution usage of 11 hours or more showed an increased by almost 30% in 2020. The demand for this is said to continue growing in 2021. In addition to the pandemics shove towards online schooling, this sector’s solutions are no longer a short-term quick fix, rather it is a sector set to surge. Software includes massive open online course providers (MOOCS), student engagement software predicting risk of dropping out (Zovio’s – Signalz), personalised messages and measurement of activity on assignments (Piazza).
4. Agritech
The agritech sector in Africa is worth $2.2b. Due to the growing demand in supply of food the pressure of becoming sustainable and commercial in the sector is now more than ever. Agritech companies such as Aerobotics are seeing large interests in their product and services as they offer smart solutions (AI) that supports the sector.
5. Fintech
There are over 200 fintech companies in South Africa. In addition, the sector has already shown to be a cash cow. Subsequently an increase in demand for varied payment methods and the types of funding offered in the market will allow some to ‘rise’ to the occasion while the more traditional digital payment solution & alternative funding companies may stagnate. We will see interest given to cryptocurrencies, modernised digital payments, lending & funding for gig economy.
6. BPO Market
With a BPO market valued at $461m, companies such as Google have invested into the Western Cape’s business process outsourcing (BPO) market. While the BPO consists of BPaaS (valued at $188m) and the traditional BPO (valued at $272m), in 2021 there will be a faster growth in BPaaS in 2021.
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