SMEs In South Africa Are Turning To VoIP To Cut Costs

How VoIP can be of great help to South African SMEs

For small and medium-sized enterprise (SMEs) in South Africa, being able to manage their finances especially their overhead costs efficiently is highly essential. That is why most businesses in the region are turning to Voice over Internet Protocol (VoIP) for help.

VoIP is popular among cost-cutting measures for SMEs in South Africa as it offers their businesses with efficiencies and boundless options on top of being able to save from exorbitant telecom costs for up to 45%. According to a survey by CIOs, web conferencing expenses have dropped significantly by 30%, following VoIP system implementation by businesses.  

“With South Africa experiencing a technical recession in 2018 and GDP growth expected to remain less than impressive in 2019, it’s going to be belt-tightening time well into the foreseeable future,” said Evan Matthee, Chief Financial Officer of Tier One telco, ICTGlobe.


Cost-cutting for most SMEs could mean firing an underperforming staff, changing their location, or removing non-core products and services from their portfolio. However, all of these measures are proven to negatively impact their productivity, sales, and even their peace of mind.

Implementing VoIP voice and data systems over traditional copper wire technology, however, is proven to eliminate unnecessary costs and slash operating expenses while improving the business’ productivity in different areas.

Furthermore, as SMEs operate with a very small team, it is empirical for them to allocate their time to a more productive task. According to, 40% of an SME’s productivity is lost as they stop and start critical business tasks throughout the day to check their voicemails. With VoIP, this problem can be resolved as it is known to carry multiple multi-tasking features through unified messaging.

Start-ups, most especially, need to be very careful with every business decision they make during the lean times, as they have not yet progressed into a more stable stage of the business cycle. SMEs are fragile, hence the need for incubation, and they should be especially wary of serious telecoms equipment commitments. VoIP help eliminate this risk not only because the investment is smaller as compared to traditional telecom systems, but it also offers a multitude of other benefits including conducting business to an expanded demographic.

“Cost-cutting needs to be smart with productivity in mind as SMEs could negatively impact future growth with ill-considered belt-tightening not implemented in consultation with an established ICT partner,” concludes Mr. Matthee. /apr

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