How to make passive income in South Africa? Are there legit passive income opportunities in South Africa? Today we are going to discuss the best passive income ideas in South Africa in 2022 and 2023.
One of the most popular misconceptions in the financial world is that passive income is money made without working?
The good news is that passive income is one of the most effective ways to build money and improve your standard of living.
Almost all of the world’s 2300+ billionaires obtained their wealth through passive income.
One of the most common financial myths is that passive income is earned without working. That couldn’t be farther from the truth. It’s not as simple as it appears.
What exactly is passive income?
Passive income accumulates over time as a result of investments and activities that do not cease when the source of income does. Rental property revenue, dividends, and royalties are examples of passive income.
When most individuals hear the phrase “passive income,” they envision being wealthy. The good news is that passive income is one of the most effective ways to build money and improve your standard of living. In reality, becoming a multimillionaire in South Africa and around the world is nearly impossible without a diverse set of income sources.
Almost all of the world’s 2300+ billionaires obtained their wealth through passive income.
It’s reasonable to imagine that people like Jeff Bezos amass their fortunes by working for Amazon. On the day that he quits Amazon, his income will probably be less.
Only his monthly salary of roughly $144,000 USD would be lost if Bezos resigned from Amazon. He will, however, keep increasing the value of his stock and dividends, which is how he generates his billions. That is what we call passive income; you work for it, but it keeps paying you even if you stop working.
Five Passive Income Ideas in South Africa s for 2022
1. Invest in dividend-paying stocks.
Investing in stocks is one of the most popular ways to build money in South Africa and around the world. However, you should exercise caution while selecting stocks. If you want to generate passive income from your investments, you should buy stocks that have an excellent track record of paying out dividends at least once a year.
South Africa’s Best Dividend Stocks
| 2022 Ranking | Company | Dividend Frequency Per Year | Market Capitalisation 000,000 (ZAR) |
| 1 | Fortress REIT B | 2 | 2109 |
| 2 | Hyprop Investments | 2 | 6110 |
| 3 | Redefine Properties | 2 | 13200 |
| 4 | Vukile Property Fund | 2 | 5259 |
| 5 | Tsogo Sun Gaming | 2 | 3650 |
| 6 | Growth Point Prop | 3 | 139000 |
| 7 | MAS Real Estate Inc | 2 | 7140 |
| 8 | Nedbank Group | 2 | 53217 |
| 9 | Investec | 4 | 10153 |
| 10 | Absa Group Limited | 2 | 83053 |
2. Affiliate Marketing
Affiliate marketing is quickly becoming a lucrative source of passive income in South Africa. Essentially, affiliate marketing means marketing things for a company for which you do not work. When you make a sale, you get paid a percentage of the sale, which is known as a “commission.”
That sounds like a lot of effort, doesn’t it?
It certainly is!
That is the theoretical definition of affiliate marketing. The majority of affiliate marketers own websites or are YouTubers, podcasters, social media influencers, or bloggers.
They already have communities and followers; all they have to do is publish a link to a product to their followers and get paid a commission when a purchase is made.
This has resulted in a large number of millionaires over the last ten years. If you have some basic computer skills, including but not limited to social networking, this is the best way to do this.
If you have a website that caters to South Africans, you can begin affiliate marketing by registering with Admarula or Offerforge. Admarula and Offerforge are the two affiliate marketing market leaders in South Africa.
3. Purchase a stake in your employer’s stock.
This may appear impossible or implausible, but it is common practice among high-performing employees who are financially literate. If you work for a small-to-medium-sized business and believe it has a bright future, you can approach the firm’s directors and offer to buy the company’s stock.
When offering to buy the shares, you must have a clear plan for financing the transaction. If you’re going to buy them for cash, you’ll need a significant sum, preferably not less than your annual wage.
The best option to propose the purchase is with a monthly direct deduction from your salary. This normally works effectively for businesses that are experiencing cash flow issues. This tactic will most likely succeed in 2022 when corporations’ cash flow will be severely constrained as a result of COVID-19 lockdowns.
Some corporations are hesitant to sell stock to employees, while others are open about it. They perceive it as a vote of confidence in the company’s future.
In either case, it is a fantastic source of passive income. You will only lose your pay and bonuses when you leave the company, but you will continue to profit through share value increases and dividends.
4. Sales of Information Products
If this era has taught us anything, it is that information is both powerful and valuable. If you are knowledgeable in a particular field and know how to write, you can create courses that you can sell on platforms such as Udemy or Skillshare.
If you are not afraid of being in front of a camera, you can create classes and publish them on YouTube. As part of Google’s monetization scheme, you will be paid for your videos. You may also get sponsors that you must mention in the video.
The long and short of it is that if you know something that other people do not, you can commercialize it.
5. Peer-to-peer lending generates passive income.
This is likely the most effective approach to generating passive income. Peer-to-peer lending is the process of making a personal loan to another individual via a third-party platform.
This works well since you don’t have to do much; the platform vets all loan applications and calculates risk levels for you.
If you ever want to create passive income from peer-to-peer lending, the best place to start is with platforms that provide loans for social good, such as Prodigy Finance.
Prodigy Finance is a peer-to-peer lending company that gives loans to postgraduate students, mostly from poor countries, who want to go to the best universities in the world to study.
So far, they have lent money to over 19000 students from 150 countries. It was hard for Cameron Stevens, a South African student at Instead, to get money for his MBA. So he started Prodigy Finance, which helps people get money for their MBAs.
Conclusion
So, these were our 5 passive income ideas in South Africa. We have discussed the best passive income opportunities in South Africa – these are five strategies for generating passive income in 2022. Some of them will require a lot of work and attention to get to the point where they can make money for you.
