Services

Historically, services evolved alongside industrialisation, initially providing auxiliary roles to agriculture and mining. Over time, it expanded into a dominant force, reflecting global trends of economies shifting from manufacturing to services. South Africa’s unique advantage has been its English-speaking workforce and favourable time zone, which positioned the country as a global hub for call centres and business services.

Today, the services sector employs millions across formal and informal work, from high-skilled financial analysts to informal traders and domestic workers. Inequality defines the sector, while professional services enjoy growth, low-wage workers often remain in precarious employment without benefits or security.

Often overlooked, the services sector is the hidden engine of South Africa’s economy. Encompassing finance, hospitality, cleaning, retail, and business process outsourcing (BPO), it is represented by various SETAs, including SERVICES SETA. The sector accounts for nearly 70% of GDP, making it the single largest contributor to employment and economic participation.

Looking to 2030, services will continue to dominate economic output. The BPO sector, in particular, is forecast to create over half a million jobs, driven by global demand for customer service outsourcing. Hospitality and tourism, recovering post-pandemic, are also poised for growth, provided South Africa stabilises its security and infrastructure challenges. At the higher end, professional services such as consulting, finance, and ICT integration will drive demand for postgraduate qualifications and specialist expertise.

Skills development must prioritise both high-end professionals and vulnerable service workers.