5 South African Businesses That Survive Even the Worst Economy—and How You Make Money With Them
Given South Africa’s elevated unemployment rate, cost of living, and market volatility, the economy is under constant strain and pressure. Nonetheless, in all recessions, some South African companies thrive because they offer products and services that satisfy the most basic and essential human needs. They do not rely on the luxury consumer spend and do not require any economic optimism. They are in the essential services category.
The five SA businesses outlined below are recession proof and provide actionable advice on how to approach and exploit these opportunities as a new entrepreneur or as someone who wants to diversify their income.
1. Funeral Parlours – A Business That Never Closes
Death is a part of life and with that comes the funeral industry, making it one of the most recession proof industries in South Africa. Even during recession families find a way and make a plan to have a funeral for their loved ones.
Reasons for Survival
Without a doubt, funerals are a socio-cultural event and an important rite of passage.
Funeral cover is the industry norm which results in guaranteed cash flow.
The need for the service does not depend on the economy.
How to Make Use of
Begin with mobile funeral services
You do not need a mortuary. You can start with; -branded tents -hearse (used cars works perfectly) -coffin partnerships -offer budget funerals
Offer Affordable Funerals
A lot of families are in need of budget options. You can do; basic coffin + transportation + other documentation
Have Easy Payment Methods
Offer cash discount.
Have them create monthly funeral policies
Stable income from peace of mind.
Partner with churches and community organizations
In this industry, collaboration works best. Use your trust radius.
2. Bakery – Bread Sells
Bread is a staple in South Africa. It is a necessity. In bad economies, people need cheap food and go for bread.
Bread is affordable. It is a go to food and can be eaten daily.
Supermarkets can not meet the demand in rural areas. Local bakeries can.
How to Take Advantage
Starting a Micro-bakery
You will not require industrial tools. Begin with,
An oven that can bake 50-100 loaves a day
A small flour mixer
Cheap packaging
Look for spaza shops and street vendors
They want to buy bread at very early hours and need it delivered daily.
Offer wholesale and
Deliver every day.
Trustworthy clients can be offered credit.
Sell bread substitutes and
Offer vetkoeks, scones, rolls, and doughnuts to increase profit.
Use social media for preorder
Local clients can be reached through Bakery Marketplace Facebook and WhatsApp groups.
3. Owning Taxis – A Constant Supply Demand Cycle
Transport is the heart of the South African economy. Everyday millions of individuals use the taxis for work, shopping, and school.
What Keeps it Sustainable
High fuel cost won’t kill the demand, it will only adjust the fare.
Job mobility remains stagnant when there is a lack of public transport.
During recessions, taxis still operate and move large numbers of people.
What to Consider
You can begin with just one taxi.
You do not need an entire fleet. One minibus taxi can bring in:
Income on a daily basis.
Weekend private hire.
Extra income driven by peak demand.
Taxi association membership.
This provides:
Routing.
Operational security.
Protection against route competitors.
Mandatory metered rates.
Other income on advertising.
Advertising on your taxi.
Taxi renting on weekdays.
School transport in mornings.
Use dependable drivers.
Monitor fuel consumption.
4. Toilet Paper Manufacturing or Distribution
Toilet paper is one of South Africa’s fastest-moving consumer goods (FMCG) and the need never decreases, not even under heavy economic strain.
Why it Holds up
It is the most basic hygiene product.
Constantly used by homes, schools, and all kinds of businesses.
It is even more in demand with a growing population.
What to Consider
Start as a reseller.
Build customer base without machine investments by:
Purchasing from wholesale.
Supply spaza shops.
Office and salon bulk delivery.
Event bulk offers.
Moving into manufacturing.
As demand increases, invest in:
A small toilet paper rewinding machine.
Packaging and distribution systems.
Recycled jumbo rolls are the way to go.
They are less expensive and create a larger profit margin.
Pack your toilet paper with your own branding.
Having your own branding gives your business a clean corporate look and opens the door for supermarket and large retail business opportunities.
Grocery / Spaza Shops – Essential Everyday Retail
Food and other essential items are recession-proof. Small spaza shops and grocery stores are still profitable as people tend to buy their daily needs despite tight budgets.
Why It Survives
Food is an essential need of humans.
In rural locations where the expense of getting to store is high and/or difficult, these stores can be a lifesaver.
Local smaller grocery stores can better service their customers by offering lower prices and more product selection.
Ways to Capitalize on This
Begin by stocking a limited amount of essential and high-demand items.
Maize meal
Bread
Sugar
Milk
Eggs
Airtime and data
WhatsApp deliveries
Delivery is a convenience for many households, especially for:
Bread
Milk
Snacks
Toiletries
Buy in bulk
Form a partnership with a wholesaler to secure:
Discounts
Lower pricing
Better negotiation opportunities
Add value-added services
Airtime sales
Electricity token sales
Cash withdrawals
Final Thoughts: Build Where Demand Is Always Present
When the economy is weak, the best businesses to invest in are the ones that satisfy essential human needs instead of luxury items. There are many long-term opportunities in South Africa for the funeral service industry, taxi transport industry, and bread, toilet paper and grocery essential distributors. If you strategically position yourself within one or more of these markets, begin at a small scale, and expand with caution, those sectors will be able to sustain you through the years ahead with consistent, recession-proof revenue.
