2025, A Defining Year For South African Businesses
Oscar Siziba, Head of Coverage: Standard Banking in South Africa
Johannesburg, February 12, 2025 – As South Africa prepares for the 2025 national budget speech, businesses, especially SMEs (SMEs), will be keenly focused on signals about economic growth, investment and policy support. National budget speeches are not only a fiscal activity, but can also become a key indicator of the country’s economic direction, affecting business confidence, investment needs and overall operating environment.
Encouragingly, the International Monetary Fund (IMF) forecasts South Africa’s GDP to grow by 1.5% in 2025, marking a slow and steady recovery. Although challenges remain, this marks a cautiously optimistic outlook – a small and medium-sized enterprise, as the backbone of the economy, must be ready to exploit.
In addition to macroeconomic indicators, South Africa, as the host of the 2025 G20 Summit and its related B20 Summit, provides important opportunities for the business. South Africa will be the focus as major economies in the world discuss trade, investment and sustainable development. The B20 Summit is the official business engagement forum for G20 and will provide a platform for private sector leaders to influence global economic policies to drive business-friendly reforms.
For small and medium-sized enterprises, this is not just a diplomatic milestone, it is a platform for demonstrating innovation, building global partners and accessing international markets. The summit’s emphasis on inclusive growth is directly in line with the commitments of Standard Banking and Commercial Banking (BCB), turning potential opportunities into opportunities for vibrant businesses that drive the African economy.
However, despite these prospects, structural challenges remain. The unemployment rate remains high at 32.1% (Q3 2024), which intensifies the urgent need for policies that enable SMEs to expand and create jobs. Recognizing this, the government has carried out reforms, such as the National Small Business Amendment, which aims to reduce the traditional Chinese tape festival and simplify support for SMEs. A key development is the establishment of the Small Business Development Financial Institution (SEFDA), a merged entity designed to make financing and business support more accessible. In addition, the bill establishes the office of the small business ombudsman, ensuring just opportunities for small businesses. These reforms are crucial to removing operational barriers and promoting a more famous business environment.
Technology adoption and digital transformation are two key drivers for reshaping the SME landscape. Technology adoption refers to enterprises that integrate new tools and systems, such as digital payment platforms, cloud computing and automation, to increase efficiency and reduce operating costs. Digital transformation, on the other hand, goes beyond a single tool, a strategic shift that redefines business models, customer engagement and competitive positioning through data-driven decision-making, AI and ecosystem collaboration. The expansion of technology adoption and digital transformation is reshaping the competitiveness of SMEs around the world.
Standard Banking and Commercial Banking (BCB) exists in 20 African markets, providing businesses with access to established trade corridors, on-site expertise, and tailor-made financial solutions to navigate complex cross-border transactions. Our deep understanding of regional and global trade agreements, including the African Growth and Opportunity Act (AGOA), allows us to help South African exporters leverage their duty-free access to the U.S. market, thus expanding their reach in key sectors such as manufacturing, agriculture and textiles.
In addition, BCB’s extensive trade and investment ties with China, Africa’s largest bilateral trading partner, enables clients to take advantage of high demand areas. Through our Africa-China trade solutions, foreign exchange solutions and direct partnerships with Chinese importers, we provide businesses with seamless access to China’s supply chain and distribution networks. Our strategic engagement in the African Continental Free Trade Area (AFCFTA) further strengthens African trade by simplifying cross-border payments, reducing trade barriers and supporting SMEs to expand their operations to their domestic markets. By leveraging our extensive African footprint, deep global partnerships and professional trade expertise, we are not just banks, but trusted partners in growth, and build on our products based on expert relationship management.
With growth in 2025, it is a time for SMEs to seize new possibilities by leveraging digital innovation, building strategic partnerships and leveraging emerging trade opportunities. With the right support, small and medium-sized businesses will not only drive their own success, but also promote a more inclusive and prosperous South African economy. In line with these trends, Standard Bank provides tailored digital banking solutions to help businesses sustainably grow, manage and grow their operations in an increasingly connected market.
