In a time of uncertainty and rapid change, South African family businesses are showing extraordinary resilience and growth – with many projected to record double-digit sales growth in 2025.
PwC's South African Family Business Survey reveals what really sets apart the top-performing family businesses in today's challenging market. While global uncertainty puts pressure on growth, 37% of South African family firms have recorded double-digit sales growth by confronting their weaknesses and leveraging unique strengths.
“The survey highlights five key areas of success for top family businesses, including embracing agility through streamlined decision making, deploying long-term capital amid uncertainty, protecting and leveraging your reputation, strategically managing tax – more than just a cost – and communicating a clear, structured purpose,” says Lucia Berg, Southern Africa Family Business Director at PwC South Africa. “This shared purpose supports the capabilities needed to embed businesses in values while enabling and sustaining growth, fostering innovation, long-term vision and trust.”
However, South African family businesses lag behind in sharing their purpose externally – only 28% do so compared to 45% globally, and 62% communicate it internally compared to 64% worldwide. This gap between today's demand for transparency and authenticity is a missed opportunity to build trust and strengthen your brand.
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 dynamic 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,” says Herman Eckstein, Southern Africa Family Business Leader at PwC South Africa. “These strengths are what make them truly agile and ready to take advantage of new opportunities.
“Agility starts with strong governance,” says Eckstein. “Great boards help family businesses make faster, better decisions that align with their future goals. To get there, businesses should clarify decision roles, delegate authority, and spend 30% to 40% of the board's time on forward-looking strategy. Running 90-day quick sprints and bringing in outside experts keeps things fresh and prepared for whatever happens next.”
Although family businesses are traditionally characterized by agility and a preference for long-term patient investment, this orientation is less pronounced in South Africa than globally. While global counterparts continue to prioritize long-term objectives over short-term profits, only one in four (26%) South African family businesses report a focus 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% to 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 will have to deal with an increasingly complex tax landscape with stricter SARS enforcement and new rules such as transfer pricing and global minimum tax,” says Duncan Adriaans, private leader for Africa at PwC South Africa. “Adoption of technology in both operations and tax compliance drives efficiency, transparency and strategic decision making.”
Jabu Masondo, Southern Africa Private Family Business Tax Leader at PwC South Africa, 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.
This approach has a significant impact on the reputation and sustainability of the business. For family businesses, reputation is more than an 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.
“At a critical moment, family businesses that combine purpose, agility, patient capital, a trusted reputation and strategic tax planning into a clear strategy will thrive,” says Berg. “This means planning beyond the founders, enabling faster decisions, making long-term investments, consistently sharing community values, and viewing tax as a value driver, not just a cost.”