SOUTH Africa’s Global Business Services (GBS) sector is on track to deliver transformative job creation and export revenue, with government in discussions to offer more substantial incentives to scale high-value digital services and diversify beyond traditional contact centres.
Speaking to almost 400 delegates at the Business Process Enabling South Africa’s (BPESA) 2025 GBS Investor Conference and Exhibition at the Nkosi Albert Luthuli International Convention Centre in Durban on 4 November, Deputy Minister of Trade, Industry and Competition Zuko Godlimpi hailed the sector’s “resilience and adaptability” and reaffirmed government’s financial and policy backing to grow the industry.
The conference has drawn together local and global experts in GBS as well as government officials and leaders, to focus on opportunities for growth and partnership.
Godlimpi, delivering a keynote address, highlighted the industry’s growth and the country’s competitive edge in the fiercely competitive global field.
“From our early foundations as a contact-centre destination, South Africa has evolved into a high-value, multi-disciplinary global business services hub, offering expertise in areas such as analytics, legal process outsourcing, healthcare, finance, and ICT technical support,” he said.
He said the local sector is now home to global brands such as Amazon, American Express, Lufthansa, British Gas, Investec and T-Mobile, among many others.
“These companies have chosen South Africa not simply for cost reasons but because of the quality, commitment, and professionalism of our people,” Godlimpi said.
The deputy minister said the diversification of the sector so far had not happened by accident.
“It has been driven by deliberate collaboration between industry and government, underpinned by a shared commitment to creating work and opportunities for our youth,” he said.
The conference supports the government’s GBS Masterplan, launched in 2022, targeting 500,000 cumulative international servicing jobs by 2030.
Godlimpi said his department has disbursed over R808 million to qualifying firms under the government’s GBS Incentive programme in 2024/25 alone and is committed to expanding funding. The programme provides cash grants to qualifying international operators to offset start-up and training costs, directly catalysing job creation and export revenue in the sector.
He said the government plans to build on this success in the coming years.
“Besides boosting the total incentives package, the department is exploring a transition from a cash-based incentive to a tax-based model, similar to the Youth Employment Tax Incentive, to ensure sustainability and efficiency,” Godlimpi said.
He said South Africa offers the sector world-class telecommunications, digital infrastructure, and physical facilities that provide seamless connectivity to major source markets such as the United Kingdom and the United States along with a favourable time zone and cultural alignment.
“Our greatest strength lies in our people. South Africa has abundant, English-proficient talent with high empathy levels – qualities that global clients repeatedly highlight as distinguishing features. We now have a workforce of over 150,000 professionals serving international markets, concentrated mainly in Cape Town, Durban, and Johannesburg,” Godlimpi said.
“Importantly, more than 30,000 of these jobs are filled through impact sourcing, creating inclusive opportunities for previously unemployed youth,” he said.
He said the country offers a high value incentive in terms of its cost arbitrage, with 55–65% cost savings compared to other markets, while the government’s incentive programme further enhances these savings.
“The GBS sector is not just about answering calls or processing transactions. It is about connecting South Africa to the world, translating our talent into trade, and turning digital opportunity into human prosperity,” Godlimpi said.
“While our progress has been remarkable, the next phase of growth requires us to diversify both in services offered and in the locations from which they are delivered. This will not only strengthen resilience but also contribute to inclusive growth, the central pillar of our national economic policy,” he said.
“Diversification means expanding beyond contact-centre operations into digital services, data analytics, cloud engineering, creative design, and knowledge-based outsourcing. These are the areas that will define competitiveness in the era of artificial intelligence and automation,” Godlimpi said.
He said this also means broadening geographic footprint, growing Tier II and Tier III (secondary cities, smaller towns and rural areas) delivery locations outside the major metros.
“With support from provincial governments and municipalities, we can lower operational costs, invest in critical infrastructure, and ensure that young people in smaller towns also benefit from this expanding sector. Our value proposition to the world is clear: Quality outcomes at globally competitive costs. A socially responsible model that empowers youth. A resilient infrastructure base and enabling policy environment,” he said.
BPESA CEO, Reshni Singh, celebrated the sector’s human impact in terms of job creation and career opportunities.
“When we speak of impact, we are speaking of the young person in Umlazi who finds their first job in a contact centre and becomes a team leader within a year. We’re speaking of the software engineer from Khayelitsha building AI-driven customer experience tools used by clients across continents,” she said.
“This week is about more than dialogue; it’s about action. It’s about reimagining what we can build when innovation serves humanity,” Singh said, highlighting partnerships with the DTIC, Harambee Youth Employment Accelerator and provincial agencies.
“Together, we are proving that when innovation meets inclusion, and when people meet possibility, South Africa doesn’t just compete – it leads,” Singh said.
eThekwini Municipality Economic Development and Planning Committee Chairperson, Councillor Thembo Ntuli said the sector has become one of the fastest growing in the local economy and that the city was working hard to position itself as a strong player in the sector.
“We are investing in infrastructure, modernising our economy, and creating innovation spaces such as Innovate Durban, where new ideas can thrive. This sector is not only important on its own – it also supports tourism, logistics, Information and Communications Technology, and many other industries that keep our economy strong,” he said.
“We are working closely with BPESA and Invest Durban to provide the youth with skills that prepare them for a future in digital knowledge, data analysis, artificial intelligence and customer-experience management.
“It connects our local talent with global markets, deploying technology, creativity and service excellence to deliver solutions across the world. It provides opportunities for thousands of young people and women to build skills and secure meaningful work,” Ntuli said.
Conference
The two-day conference features keynotes on AI, talent pipelines, and regional growth. Panels include representatives from Trade & Investment KwaZulu-Natal (TIKZN), eThekwini Municipality, Gauteng Growth and Development Agency (GGDA), and the Western Cape Government, alongside global operators like CCI Global, WNS, and Concentrix.
Workshops focus on ethical AI, impact sourcing, and youth platforms, with a masterclass led by international experts. The exhibition floor showcases sponsors including Platinum partner Rand Mutual Assurance (RMA) and Diamond sponsor Krisp.
