Major international companies leaving South Africa

South Africa is a small nation at the mercy of international markets. The volatile macro environment has put immense strain on the local operations of even the largest multinationals.

However, global issues are not solely to blame. A weak rand and economy, with GDP growth of less than 1% again expected this year, are not helping international companies see a return on investment. 

Although South Africa’s equity market continues to perform well following the creation of the Government of National Unity (GNU) in 2024, much of this was due to local investment managers being drawn to the cheap valuations. 

Getting international capital into the country has been challenging amid the weak growth, and the global uncertainty characterising the Trump administration is only set to increase risk-off sentiment. 

Although some international companies, like Microsoft and Meta, are investing billions in South Africa, other international giants have decided to pull out of South Africa to focus on their core markets. 

South Africa is set to lose international finance, arms, manufacturing, consulting and mining businesses.

Bain & Company

Consulting giant Bain & Company recently announced that it would shut down its consultancy operations in South Africa. 

The local operations will be wound down, while it leaves its Johannesburg office as a services hub for its global clients.

All local employees will be retained, with the services hub providing general and back-end functions, but no further sales to clients locally.

The company has struggled to regain its presence in South Africa after being banned from providing services to the South African government in 2022. 

Bain was linked to a controversial contract at the South African Revenue Service (SARS), which the Zuma administration and former commissioner, Tom Moyane, gutted. 

The group was contracted to restructure SARS but was instead implicated in actions that weakened the institution’s enforcement capabilities.

Despite maintaining that it did not knowingly participate in state capture and that it operated in good faith, the state deemed the group persona non grata.

President Cyril Ramaphosa has called on businesses and entities outside the government to cut ties with Bain. 

HSBC

UK banking giant HSBC recently announced that it would exit South Africa, with FirstRand set to take over its clients on 31 October 2025. 

The UK-based HSBC bank announced in September 2024 that it would close its doors in South Africa after 30 years of operation. The group started its local operations in 1995.

HSBC’s clients, banking assets, liabilities and employees will be moved to Rand Merchant Bank under the transfer. 

The clients of HSBC South Africa are primarily subsidiaries of multinationals operating in the country and some large domestic corporations, making it a good fit for RMB.

HSBC is one of five international finance groups that have made similar downsizing moves in South Africa over the last few years, following BNP Paribas, Barclays Plc, Standard Chartered Plc, and Societe Generale. 

IG Group 

Online trading provider IG Group recently shut down its operations in South Africa, though local customers can still receive service. 

The IG Group is a London-based online trading provider focusing mainly on the complex world of spread betting and CFD trading.

Established over 50 years ago,  the company is worth roughly £3.94 billion (R100 billion) and is listed on the London Stock Exchange. 

The group expanded into South Africa in 2010 following the establishment of IG Markets South Africa. 

However, the company stopped clients under its South African unit from opening new positions in late May 2025. 

The company closed all open positions on 28 July. South Africans with accounts under the group’s offshore entities can retain their accounts. 

In an email to clients, the group said it discontinued its domestic trading accounts denominated in rands. The company thus provided a notice of termination.

“This decision wasn’t made lightly, and our priority is supporting you through a smooth transition,” said an email to clients 

“We have decided to offer an extended notice period of 60 days to provide you with additional flexibility in determining when you want to close out your open positions.”

Tupperware 

The Florida-based container brand Tupperware said it would exit South Africa in 2024 as part of a larger liquidation and restructuring strategy.

Despite being synonymous with all forms of plastic containers, the company filed for Chapter 11 bankruptcy in September 2024 due to declining sales and worsening financial circumstances.  

Regulatory filings showed that Tupperware’s new owners would focus on eight core markets, which exclude South Africa and Australia.

As per its exit in South Africa, a large plastic manufacturing and distribution plant with movable assets was recently auctioned. 

The total gross leasable area of the property is 22,747 sqm, and a wide selection of movable assets, including a complete plastic manufacturing and distribution plant, is available.

The property featured a large warehouse divided into four sections, a double-storey office building, a security office, a health and safety office, and a covered staff parking area.

Anglo American

Anglo American recently dumped its platinum subsidiary, Anglo American Platinum (Amplats), as part of a global restructuring. 

In late May, Anglo American completed the demerger of roughly 51% of its interest in Valterra Platinum, the new name for Amplats. 

Anglo American Platinum was founded in 1995 after Johannesburg Consolidated Investments (JCI) was unbundled following its takeover from the Anglo American Group.

Despite South Africa producing well over 80% of the world’s platinum, Anglo American announced that it would cut back its PGM holdings.

The global restructuring was done to counter a takeover bid from rival BHP. The UK-based company is looking to unbundle key assets to free up capital and management time. 

At the time of the demerger, Anglo American maintained a roughly 20% stake in Valterra Platinum, which it would retain for at least 90 days to ensure a smooth transition. 

Despite selling its platinum operations, Anglo American will keep its majority share in South African-based Kumba Iron Ore. 

Shell 

Shell is looking to sell its downstream business in South Africa, which includes its hundreds of petrol stations in the country. 

Shell is the third-largest petrol station operator in the country after  Engen and Astron/Caltex. 

Reported Abu Dhabi and Switzerland buyers are leading the race to purchase the assets. 

Despite wanting to sell its downstream assets, it intends to keep its upstream business despite the wave of litigation it faces. 

Environmental groups are challenging the group’s receipt of government authorisation to drill large oil wells off the nation’s West Coast. 

This comes after a lengthy legal process over the group’s plans off the Wild Coast, where it has received opposition to its plans to conduct seismic surveys. 

Hensoldt

Reports also indicate that German radar maker Hensoldt is exploring options for its South African optronics business, including a potential sale. 

Hensoldt is working with Deloitte to review the business. The operation is expected to attract interest from companies in the field, as well as buyout firms. 

The Hensoldt business sells products including gimbal-mounted cameras that can assist helicopters, fixed-wing aircraft and uncrewed aerial vehicles in surveillance and targeting.

The South African operations are viewed as non-core despite being the most significant industrial base outside Germany.

Owners of defence assets are seeking to tap the rising demand among buyout firms to invest in the military sector, as Europe looks to reduce dependence on the US. 

Issued on BusinessTech by Staff Writer | https://businesstech.co.za/news/business/834600/major-international-companies-leaving-south-africa/