The mood among German companies in South Africa is optimistic: according to the latest German-Southern African Business Outlook 2025, 64% of respondents expect turnover to increase in 2025. 44% are planning investments, of which one in ten companies are planning investments with a volume of at least three million euros.

The main drivers of this positive development are political reforms following the 2024 parliamentary elections, with a new government of national unity focusing on fighting corruption, infrastructure programmes and improving the energy and water supply. Almost 77% of companies anticipate a better economic climate – even if the majority of respondents only expect moderate improvements.

South Africa offers attractive prospects for German suppliers in particular. 71% of companies are currently focussing on increasing sales as their primary goal, while 61% would like to expand their market share. Reducing costs is also on the agenda for many companies (42%).

Respondents cited political stability (50%), the reduction of bureaucratic hurdles (47%) and stronger anti-corruption measures (35%) as particularly important for future growth. A reliable energy supply and a better security environment are also moving centre stage.

Another plus point: South Africa is seen as a gateway to the markets in sub-Saharan Africa. 44% of companies appreciate the access to neighbouring markets, 38% praise the established supplier network.

In addition to domestic development, international framework conditions also have a positive effect: A third of companies see growing potential in the African Free Trade Zone established in 2021. The existing “African Growth and Opportunity Act” continues to provide 40 of the 55 member states of the African Free Trade Area with duty-free access to the US market – an advantage that further strengthens German exporters. The trade agreement runs until September 2025.

Source: Southern African-German Chamber of Commerce and Industry (AHK Southern Africa)