In the ever-evolving landscape of global technology, South Africa is emerging as a launchpad for high-growth tech companies.
The unique combination of strong local tech talent, a well-developed corporate and financial sector, and a cost-effective operational base has propelled South African businesses, particularly in the software-as-a-service (SaaS) sector, to compete and succeed globally.
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These companies have not only expanded to multiple foreign markets but have also become magnets for international investment.
What sets South African tech businesses apart is their roots in a country that boasts world-class, resourceful entrepreneurs operating their companies at a fraction of the cost compared to their global counterparts.
This cost efficiency coupled with SA’s stellar corporate sector allows them to provide innovative, home-grown solutions to complex problems, particularly in industries that demand scalability and adaptability.
Scalability
By focusing on on-the-ground solutions and leveraging the inherent scalability of SaaS, these companies are crafting fintech and business solutions with broad applications across Africa and the world.
This trend is evident within Endeavor’s own portfolio, where we work to scale and accelerate the growth of high impact businesses across our local and international networks. Companies like Entersekt, a leader in identity confirmation and transaction authentication in the banking system, has witnessed exponential growth and attracted investments from global players like US private equity investor Accel-KKR.
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Similarly, IsoMetrix, specialising in environmental, health and safety, corporate governance and compliance management solutions for the world’s largest mines, was acquired by the Carlyle Group, a US private equity firm, recognising their global application.
A more recent example is GreatSoft, providing cloud-based practice management solutions for major accountancy and audit firms such as EY. In August, it was acquired by Vela Software, a part of the Canadian-listed Constellation Software Group.
These companies, operating from South Africa, not only prove that high-growth businesses based here can succeed globally but that they also contribute significantly to the local economy by creating jobs, attracting direct foreign investment and revenue.
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The success of these companies is rooted in their ability to provide cost effective solutions that meet the critical needs of clients in areas such as payment authentication, compliance, risk management, and governance. Clients, including major banks, accounting firms, and mining houses, have positioned South African tech entrepreneurs at the forefront of technological innovation.
The local market serves as an ideal testing ground for these solutions, allowing them to establish a robust product fit before expanding internationally, often via their customers’ global footprint.
GreatSoft, for instance, achieved a record of success spanning three decades, collaborating with Australian business management platform MYOB to achieve over 70% sales growth in the past year. Maintaining its South African base enables GreatSoft to build locally at a significantly lower investment level, yet with comparable or superior quality, positioning it strategically in the global market.
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Entersekt, with its groundbreaking context-aware authentication technology, has experienced rapid international growth, establishing sales offices in various global locations, while relying on the skills and dedication of its growing local South African operational team.
IsoMetrix’s focus on the mining industry, combined with tailoring its solution to clients’ exact needs, has given it a competitive edge, with the investment by globally-recognised Carlyle enabling significant international contract book growth.
These companies attribute their international success to an absolute commitment to understanding their client needs and providing efficient and effective solutions that solve this. They emphasise the importance of strong financial oversight and strategic partnerships that provide expertise, open networks, and access to capital global capital to drive their international growth.
The success of South Africa’s high-impact tech sector serves as a blueprint for global expansion. These companies prove that innovation, coupled with a commitment to excellence and strategic partnerships, can transcend borders, creating a ripple effect of economic growth and job creation in both local and international markets.
As the world continues to evolve digitally, South Africa and its considerable tech talent, stands to gain.
Alison Collier is CEO of Endeavor SA.
