Business Report

KwaZulu-Natal: A leading hub for Global Business Services and youth employment

Siphesihle Buthelezi|Published

South Africa has the deepest and most persistent unemployment crisis in the world.

Image: Henk Kruger/Independent Newspapers

KwaZulu-Natal (KZN) is solidifying its position as one of Africa’s premier Global Business Services (GBS) hubs, driving inclusive growth, digital innovation, and international competitiveness.

The province will showcase its capabilities at the upcoming BPESA GBS and BPO Conference, scheduled to take place in Durban from 3–5 November 2025.

Between 25 and 30% of South Africa’s global services workforce is concentrated in Durban, making the city the country’s second-largest GBS hub by headcount, following Cape Town. According to Reshni Singh, CEO of Business Process Enabling South Africa (BPESA), the sector plays a key role in addressing youth unemployment.

As South Africa grapples with a youth unemployment crisis, the GBS sector is playing a pivotal role in shaping a more inclusive economic future. In 2024, the sector created over 20,000 new jobs, with KwaZulu-Natal alone recording just over 6,000 new jobs for the year. On average, youth jobs accounted for about 89.25% of new hires for the year, demonstrating the attractiveness of this growth sector for its youth job creation potential,” Singh said.

The province is also investing in developing digital skills among young people. Russell Curtis of Invest Durban highlighted initiatives such as Innovate Durban, which runs Youth Innovation Challenges and digital skills bootcamps designed to equip youth with IT, coding, and problem-solving skills. “Through initiatives such as Innovate Durban, the province is equipping a new generation for the digital economy,” Curtis said.

KZN has established a reputation for high-quality service delivery in outbound B2C and B2B sales. Curtis noted that the province’s delivery centres operate multichannel and multilingual global services, maintaining ISO-certified security and quality management processes. “In addition, our service agents demonstrate natural empathy and strong relational skills along with a neutral English accent, all of which are ideal attributes for delivering high-quality communication and customer interactions,” he said.

Labour and operational costs in KZN remain competitive. Curtis added that costs are 65–70% lower than source markets such as Manchester, Dallas, and Sydney, allowing companies to achieve cost savings without compromising service quality. The province is also expanding its capabilities in artificial intelligence (AI), robotics, machine learning (ML), and real-time analytics.

The BPESA GBS and BPO Conference will serve as a platform to showcase South Africa’s strengths as a global offshoring destination. “South Africa ranks as the world's third most attractive offshoring destination. KwaZulu-Natal's GBS sector demonstrates that we can compete globally while creating meaningful opportunities at home,” Singh said.

Sihle Ngcamu, CEO of Trade & Investment KwaZulu-Natal, emphasised the province’s commitment to inclusive growth, youth employment, and digital transformation. “KwaZulu-Natal is well positioned to be a premier Global Business Services hub, driving inclusive growth and digital innovation. We are committed to supporting initiatives that promote youth employment, skills development, and digital transformation. We believe that the upcoming BPESA GBS and BPO Conference will be a game-changer for the province, showcasing our capabilities and attracting new investments,” Ngcamu said.

The province’s business-ready infrastructure, including the Durban Technology Hub (SmartXchange), and investments in renewable energy and ICT, further strengthen KZN’s value proposition for global investors. Local and international delegates are expected to attend the conference for strategic dialogue, industry insights, and partnership-building, helping shape the next phase of South Africa’s GBS sector.

THE MERCURY