Known as the financial capital of Africa, Johannesburg provides a wealth of opportunities for those who want to start a new venture. With businesses on every corner, it is a thriving economic hub that inspires and encourages innovators. According to the City of Johannesburg, it contributes almost 16% to South Africa’s national economy. In the Gauteng province in which the city is located, it contributes 40%.
The majority of the economy is made up of financial services, retail and wholesale trade, social services and manufacturing. In addition to plenty of economic opportunities, the city is home to a vibrant entrepreneurial community. This opens the door to networking prospects for innovators looking to set up shop in the city.
Why Entrepreneurs Are Choosing Johannesburg For Business
Compared to global cities, Johannesburg has a fairly lower cost of living and operating expenses. For startups with smaller budgets, it offers a more budget-friendly environment compared to international counterparts. Labour costs are also more manageable for startups to still have a skilled workforce but can manage their overheads during the early stages.
Both commercial and residential properties are more affordable than overseas cities, which makes Johannesburg an attractive option for entrepreneurs looking to move there and open their business.
Top 10 Johannesburg Startups
These startups have taken advantage of the city’s growing business environment and have established themselves as companies to watch.
1. Pineapple
Founded in 2017, Pineapple offers comprehensive car insurance against third party accidents, theft, fire and weather damage to name a few. They provide a quick application and claims process, with affordable options for drivers. For additional peace of mind, their services extend to accident and roadside assistance, emergency tyre or fuel assistance and emergency accommodation.
2. Hohm Energy
An advocate for environmentally-friendly solutions, Hohm Energy is an online platform that connects customers with accredited solar providers. From there, they assist with your move to solar including installation, ongoing operations and maintenance. Their mission is to accelerate the solar panel movement to reduce the carbon footprint in residential areas to promote a greener future.
3. Paneotech
Paneotech provides fast-track IT solutions to other firms through software development and business consultancy. They have a Pan-African vision to address challenges and embrace opportunities across the African continent. With groundbreaking technologies, they aim to transform the industry and foster economic growth.
4. Flow
Flow is an adtech platform that empowers brands, agencies and network businesses to connect with high-intent audiences. Their solutions serve the real estate, automotive and insurance industries. Teams are given the tools that they need to serve marketing ads to their intended audiences and remain top-of-mind. The company has worked with more than 100 brands both locally in South Africa and abroad.
5. Everlectric
Dedicated to accelerating the adoption of electric vehicles (EVs) and sustainable transportation solutions, Everlectric aims to make electric mobility more accessible and practical for both businesses and individuals. The company provides comprehensive EV charging infrastructure solutions, including the installation of charging stations and the management of electrical grid integration.
6. Ozow
Using Ozow, businesses can connect to 47 million bank account holders to accept payments, issue refunds and make payouts. Its payment solution is contactless, cashless and cardless, and payments can be managed seamlessly from the app. It offers multiple payment options from QR codes and eCommerce to e-billing and in-store payments.
7. Howler
Howler is an online tech platform used by event organisers to plan, promote and manage their events. Customers can purchase event tickets and load money onto their online wallet before the event, and transact with a wristband at the event. Recharging stations allow for customers to top up their accounts and access leftover funds.
8. Sendmarc
Sendmarc is a software company that offers e-mail protection from cyberthreats. They have created a powerful DMARC (Domain-Based Message Authentication, Reporting & Conformance) platform for businesses to manage their domains against phishing, spoofing and impersonation attempts. Recently, the company developed Lookalike Domain Defense and Breach Detection solutions to protect domains and create alerts for potential data breaches.
9. Naked Insurance
Naked Insurance offers insurance solutions for cars, home and single items. The company takes a flat fee from your monthly premium, the rest is saved to cover claims. If there is more than needed at the end of the year, it gets donated to local causes. The company has donated more than £100 000 to education, families in need and animal shelters.
10. VALR
Founded in 2018, VALR is a digital asset trading platform. Users can securely buy, sell, trade or store cryptocurrencies and currently has more than 500 000 users worldwide. The company has raised £4.2 million in equity funding from leading investors such as Pantera Capital and Avon Ventures.