Is your business built for SA's slow-growth reality?

The International Monetary Fund (IMF)’s bleak forecast confirms it: just 1.3% growth in 2025, rising marginally to 1.4% in 2026. This isn’t a temporary dip – it’s prolonged stagnation. With energy costs 68% higher than in the US, logistics gridlock strangling exports, and consumer spending evaporating amid 60% youth unemployment, business owners face a silent squeeze. If your business hasn’t adapted, you’re not just stagnating – you’re sliding backwards.  

Recession-proofing strategies for the long haul  

Ruthless cost optimisation 

In a 1.3% growth economy, trimming discretionary spending is no longer enough. Dig deeper: renegotiate energy-dependent contracts to lock in fixed rates amid tariff volatility, audit logistics costs to sidestep port/rail delays, and replace manual compliance processes with digital tools. Every rand saved isn’t just efficiency – it’s survival capital.  

Cash flow warfare  

Liquidity is oxygen during stagnation. Prioritise these universally critical tactics:

• Accelerate customer payments: Incentivise faster settlements (for example, 2 to 5% discounts for 7 to 15-day payments) and implement strict late-penalty systems. Every day saved improves survival odds.
• Build strategic reserves: Target three to six months’ operating costs in accessible accounts. High interest rates make idle cash work for you – but ensure instant liquidity for crises.
• Model scenarios such as Eskom’s 30% tariff hike proposal or key client insolvency.

Strategic diversification: Future-proof without gambling

When growth stalls at 1.3%, relying on a single product, client, or market is a fragility few businesses can afford. Diversification isn’t about radical reinvention – it’s about systematically extending your existing capabilities into adjacent opportunities. Consider these proven pathways:

Service-enable your products

Transform one-time sales into recurring relationships. Could your:

• Physical products be bundled with maintenance/subscription plans?
• Expertise be packaged into advisory retainers or digital tools?

Core principle: Turn one-time sales into recurring revenue by bundling services.

Democratise your expertise

Repackage hard-won knowledge into scalable formats:

• Low-cost workshops/webinars addressing urgent client pain points
• Self-serve digital resources (templates, diagnostics, on-demand training)

Core principle: Monetise institutional knowledge without custom labour.

Collaborate to expand reach

Partner with non-competitors serving your ideal customers:

• Co-create offers combining complementary skills 
• Share distribution channels to access new audiences at minimal cost

Core principle: Multiply market access through trusted alliances.

Optimise for resilience

Reorient around hyper-local or non-discretionary demand:

• Essential goods/services are less sensitive to spending cuts
• Community-support models strengthening regional loyalty

Core principle: Anchor your relevance where economic shocks hit hardest.

Relationship resilience  

Forge crisis alliances:

• Share costs with friendly competitors where possible
• Demand bulk-buy flexibility from suppliers, and retain skilled staff fleeing stagnant sectors. 

Core principle: Trusted networks become lifelines when systems fail.  

Key considerations when getting started

Before diversifying in a slow-growth economy, rigorously pressure-test your plan against these seven questions to validate demand, leverage existing assets, and avoid gambling scarce resources.

1. What assets/expertise do we underutilise? 
2. What do clients already pay us to solve?
3. Would our top five clients buy this? What problem does it fix today?
4. Can we pilot with <15% of operating cash? 
5. What existing resources can we repurpose?
6. What’s the break-even uptake? 
7. How does this diversify revenue type (not just volume)?

True diversification reduces dependence – not distraction. Start by doing more of what already works – for more people, in more ways.

Your accountant as your co-pilot 

1.3% Growth demands more than austerity – it requires strategic reinvention. Your accountant should be doing more than just tracking expenses – they should model scenarios (load-shedding losses, port delays) and identify pivot points. A great accountant can help you identify where to cut, where to pivot, and how to turn stagnation into opportunity.