In the ever-changing world of business, several African small and medium enterprises (SMEs) are making waves on the global stage. These dynamic companies, born and bred in the heart of Southern Africa, are not just surviving but thriving abroad, showcasing the resilience and innovation that define our nation and are a true testament to Africa’s entrepreneurial spirit.
Business Tech Africa spoke with CFO360’s Entrepreneurial founder, Montaque Swanepoel, a qualified CA, to find out what prompted him to start his innovative accounting firm and how it progressed from a SME on the streets of Johannesburg to a big step-up onto the global stage? The answers are nothing short of inspiring.
I asked him if CFO360 had started its journey as a fully automated and digital entity or had it been a process of development stages? Montaque answers “We were cloud and digital first and paperless from the start”. “I came from a corporate world where one of the things that frustrated me was the amount of paper that was printed on a daily basis and then pushed around” he says.
Montaque’s entrepreneurial spirit shows clearly as he says “I tried to spearhead a project to change all of that but corporates move slowly so then I decided to do it on my own and I always wanted to start my own business, it had always been on the back of my mind,” he comments.
Swanepoel has certainly lived out his paperless digital purpose and proudly acknowledges that they have 80 people employed in their office in Johannesburg today with a single printer that he says is deliberately fairly frustrating to use as they live out their paperless philosophy still after eight busy years of building the business.
According to Swanepoel they started an automation development process several years ago and have not looked back. Cloud base tools have also been one of the key enablers for the company to expand into international markets as he comments that the digital tools they use, makes working with clients based elsewhere easy to manage.
CFO360 has expanded its market into Cape Town as well as internationally in the UK, where they have established a team of eight people, and the US markets are currently growing well for them. “The sheer scale of the markets here in the US is remarkable”, Montaque comments. A single state such as Texas, has a bigger economy, that the entire SA GDP. “The number of businesses here is remarkable”, he says.
In South Africa we have estimates of over 300 000 SME businesses while in the UK it is 6 million small businesses and the US is around 34 million. Mantaque comments that entrepreneurs from Africa often arrive in the US with the view of tackling the whole market but soon realise the sheer scale of a single area provides ample scope for their growth.
“As a South African business that has successfully expanded internationally, we at CFO360 are proud to be part of a wave of local businesses proving their worth on the global stage. Our journey has shown that South African companies can thrive in even the most competitive markets with the right mix of technology, adaptability, and local expertise.
As advice for any other businesses looking to establish themselves in the US, Montaque advises that business people need to understand that your residency and identification, as well as tax registrations and company registrations in the US are all state based, so it is always best to seek out the best tax options first rather than having to move around later.
It’s incredibly rewarding to see South African talent and innovation make a real impact internally by supporting businesses elsewhere in the world. We hope that our journey encourages other local businesses to seize the sizable opportunities in other markets and learn that it can be done” says Montaque Swanepoel.
The opportunity is huge for South African chartered accountants to offer their services in new markets. With the South African Institute of Chartered Accountants (SAICA) named the most trusted accountancy body in the world, there’s no doubt SA accountants have the credibility to compete overseas.
“We’re extremely proud of SA-born Xero partners showing their quality on the global stage and the resulting increase in demand for their services,” says Colin Timmis, Country Manager of Xero South Africa.
“When we look at the drivers of success for these businesses and others who have expanded internationally, it is evident that technology plays a pivotal role in their growth abroad. There is no denying that South African SMEs face numerous challenges, from having to wear multiple hats, to navigating different tax and regulatory environments.. The resilience and adaptability of these businesses is remarkable and their skills often out-league those abroad,” adds Timmis.
Reflecting on the ingenuity shown by various SMEs in Southern Africa, it is clear that the success of South African SMEs on the global stage has a ripple effect on the local economy. These businesses create jobs, foster innovation, and contribute to economic growth. They also serve as ambassadors for South African excellence, showcasing our country’s potential to the world. Their achievements inspire other entrepreneurs to dream big and pursue international opportunities.
