When you think of South Africa, several things may come to mind. Table Mountain, Kruger National Park, and Nelson Mandela’s long walk to freedom may top the list. Many business-minded people may consider the fact that South Africa is home to 90% of the world’s platinum reserves and contained just under half the gold resources on the entire planet. But South Africa is finding its feet in another realm – that of technology start-ups. 2019 has seen a steady rise in successful and innovative tech start-ups that are hoping to establish Johannesburg as the next Silicon Valley. What are some of the most promising tech start-ups to come out of South Africa?
Why are start-ups succeeding in South Africa?
The changing nature of South Africa and its population has led to a melting pot of tech ideas. One of the reasons that the barrier to start-ups has been lowered is due to the range of investors available to fund some of these lofty ideas. There are angel syndicates comprised of investors, such as Jozi Angels, the South African Business Angel Network, Africa Angels Network, and AngelHub Ventures – all of which help businesses realize their potential and give ideas the chance to succeed where finances may have prevented them from doing so.
Drawing up external investment is beneficial not just for the company gaining the finances, but for the investor and the potential return they will get in the long run. The amount of information available indicates where money should be invested and what might make a beneficial investment. For instance, forex trading signals can help by scanning the market and cross-referencing data across timeframes to determine when the best investment will come through forex trade. By noticing patterns in the market, those looking to invest in digital companies and start-ups are able to pick up key trends in what might have the legs to survive in the marketplace.
What kinds of start-ups are doing well?
Digital banking is growing and will be the industry to watch in years to come, which could explain how Bank Zero, a self-proclaimed disrupter of the natural order of finance is doing so well. They are an app-driven bank and have their own card technology, as well as a banking licence from the South African Reserve Bank. With funding secure, the full extent of the business will be in operation in the latter part of 2019.
Franc Group is a fintech start-up that is taking advantage of the growing trend of investment and offers the chance for passive investment through smartphones, which helps to introduce people to investment by providing ways in which they can do so with smaller sums. They succeeded at the Johannesburg edition of the Seedstars World start-up tournament in November 2018, helping them continue their growth. E-health company Healthcent has managed to secure funding for further expansion in 2019 for the company which runs the Signapps platform, which helps medical practitioners collaborate rapid response for patient attendance. The investment comes from Umkhathi Wethu and investment company Allan Gray.
There are countless other business success stories to come out of South Africa. South African app Flock helps event promoters to engage with attendees and has already been put to good use across 25 other countries throughout Africa and Europe. The company secured angel investment in 2016. Giraffe is a start-up that helps people in their job searches in the retail, admin and security industries and has raised funding of $500,000 so far.
The appetite for digital companies to continue to grow in South Africa through funding is stronger than ever and looks to lead to some innovative companies flourishing in the future.
The capital market in South Africa is quite vibrant. It is also attracting quite a number of players both domestically and internationally. However, if there is anything a smart investor would tell you, it is that the money market is as risky as it is profitable. Only a handful of investors make huge returns on a consistent basis. So don’t jump into the market with both feet. No, you’re better off starting off by studying what makes the market tick, and Forex Signals is a great website to start learning about the money markets.