There were 6 018 new jobs created countrywide in the Business Process Outsourcing (BPO) and Global Business Services (GBS) sectors between October and December 2023 - 39% of which were in KwaZulu-Natal. In July 2023, it was reported that the sector contributed $74 million (around R1.3 billion) to the country's export revenue. This is clearly a sector poised for growth and investment – and the KZN South Coast is emerging as a top destination for this to happen.

With the broad expansion and growth of the sector, the opportunity to step away from traditional, established locations has seen BPO operators looking for alternative ‘Tier II’ locations located closer to the talent pool with reduced property costs. The KZN South Coast is a compelling Tier II landscape with a vibrant cultural diversity and, as yet, an underutilised talent pool, making it a prime region for BPO investment.

“The KZN South Coast has beautiful tourist towns; stable, warm year-round weather; and a pleasing landscape that makes it a great destination from which to operate,” explained Reshni Singh, CEO of Business Process Enabling South Africa (BPESA). “There is a very active community ensuring maintenance and upkeep, with businesses and citizens working effectively together to ensure sustained operations. The property sector is driving a lot of the activity with the area open to business and growth.”

BPESA is the national trade body and industry association which – through key collaborations - promotes South Africa as a premier offshoring destination to stimulate local job creation, attract investment, and ensure excellence in service delivery and management across the GBS sector.

Commenting on potential locations, Singh noted the region’s economic hub, Port Shepstone, as well as Scottburgh, Ramsgate, Southbroom, Pennington, and Margate as key sights for BPO hubs.

“The local Margate Airport and easy commute from King Shaka International Airport make this an accessible destination, with abundant skills and talent from the tourism sector offering entrenched customer-centric service skills which are a prerequisite for the BPO sector. Business incubators such as a satellite office of SmartXchange exist helping to grow businesses and build digital skills.”

Singh said the KZN South Coast was comparable to similar Tier II regions that were already seeing sector growth, among them George and Mitchells Plain in the Western Cape, Gqeberha and East London in the Eastern Cape, Soweto and Alexandra in Gauteng, Ballito, uMlazi and Dundee in KwaZulu-Natal.

There are many opportunities for investment, with BPESA sharing some noteworthy potential for the KZN South Coast:

• Outsource business process and service needs to a third-party – BPO operator.
• Partner with a current BPO operator to support client needs.
• Set up an operation or new supplier (vendor) service in South Africa.

Deborah Ludick, Acting CEO of South Coast Tourism & Investment Enterprise (SCTIE) said the KZN South Coast was certainly primed for investment in the BPO sector: “We have a business-friendly investment climate supported by the launch of our Ugu District One Stop Shop, with access to an abundance of young, educated, and tech-savvy workers ready for employment. The sector also promotes socially conscious practices while upskilling the young and disadvantaged individuals for further career prospects, making it an industry worth promoting.”

To find out more about these and more investment opportunities, get in touch with SCTIE, the KZN South Coast’s One-Stop Shop for investment. Contact SCTIE on 039 682 7944, email oss@sctie.co.za or visit www.investkznsouthcoast.co.za.

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