Despite global uncertainty weighing on growth, South African family business leaders have forecast double-digit sales growth in 2025, highlighting the country's enduring strengths.
PwC's South African Family Business Survey shows that 37% of South African family firms have recorded double-digit sales growth by confronting their weaknesses and taking advantage of unique strengths.
In times of uncertainty and rapid change, South African family businesses are showing extraordinary resilience and growth.
According to the United Nations, while family businesses generate nearly two-thirds of global GDP and 60% of jobs, many face increasing challenges.
5 areas to drive growth
The survey highlights five key areas driving success for top family businesses.
These are:
– Embracing agility through streamlined decision making
While South African family businesses are still working on sharing their purpose externally, they have clearly proven their agility in the face of difficult economic conditions, political uncertainty and COVID-19 disruptions.
Nearly half (46%) describe themselves as agile or very agile, which matches the global average of 45%.
“What sets South African family businesses apart is their ability to innovate products and services, adopt new technologies, enter new markets and secure strategic partnerships, areas where they consistently outperform global peers.
“These strengths are what make them really agile and ready to take advantage of new opportunities,” says Herman Eckstein, Southern Africa family business leader at PwC South Africa.
Agility starts with strong governance. Great boards help family businesses make faster, better decisions that are aligned with their future goals.
“To get there, businesses should clarify decision roles, delegate authority, and spend 30-40% of the board's time on forward-looking strategy. Running 90-day quick sprints and bringing in external experts keeps things fresh and ready for whatever happens next,” he adds.
– Long term capital planning amidst uncertainty
While global counterparts continue to prioritize long-term objectives over short-term profits, only one in four (26%) South African family businesses report focusing on the long term, with a larger share placing greater emphasis on immediate or short-term returns.
To stay ahead, family businesses should set aside 1-2% of revenues for future funds targeting AI and digital transformation, diversify capital sources and adopt a “twin-horizon” strategy that balances today's core operations with tomorrow's growth opportunities.
“While diversifying capital offers growth opportunities, family businesses must deal with an increasingly complex tax landscape with stricter SARS enforcement and new regulations such as transfer pricing and global minimum tax. The adoption of technology in both operations and tax compliance increases efficiency, transparency and strategic decision making,” says Duncan Adriaan, PwC South Africa's Africa private leader.
– Managing tax strategically, more than just a cost
Southern Africa Private Family Business Tax Leader, PwC South Africa, Jabu Masondo highlights that tax should not be viewed simply as a cost or compliance issue but as a strategic tool aligned with long-term goals.
Yet only 37% of South African businesses see paying their fair share as good corporate citizenship. By being prepared for audits, proactively engaging with SARS and managing tax wisely, family businesses can reduce risk, build trust and turn tax into a driver of sustainable growth.
– Protecting and taking advantage of their reputation
The above (tax) approach has a significant impact on the reputation and sustainability of a business.
For family businesses, reputation is about more than inheritance; It is a major asset and driver of growth. South African leaders cite political, social and labor issues as top concerns but believe they earn more trust from customers, employees and communities than non-family businesses.
Giving back builds this trust, with 80% supporting their communities through philanthropy, well above the global average.
To further strengthen their reputation, businesses should move beyond donations to active partnerships with schools and local enterprises, fostering long-term trust and reducing stress. All rights reserved.
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