What is the gig economy and why is it growing?
The gig economy has come a long way since the days when it was associated mainly with ride-hailing drivers and food delivery couriers. Today, it encompasses everyone from software developers and graphic designers to accountants, marketers, consultants and AI specialists.
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In South Africa, where unemployment remains stubbornly high and businesses are under pressure to remain agile, gig work has become an increasingly important part of the labour market. What was once viewed as a side hustle is now a primary source of income for millions of people.
What is the gig economy?
The gig economy refers to a labour market made up of short-term, freelance, contract and project-based work rather than traditional permanent employment. Gigs are also frequently referred to as "side hustles".
Digital platforms have accelerated its growth by making it easier for businesses and independent gig workers to connect, collaborate and transact across geographical boundaries.
Technology has transformed what was once a localised phenomenon into a global marketplace. A freelancer in Johannesburg can now work for a client in London, New York or Sydney without ever leaving home.
The gig economy comes of age
The gig economy is no longer a niche segment of the workforce. Recent estimates suggest it supports up to two million South Africans and contributes approximately 2.8% of national GDP.
The growth has been driven by several factors:
- Persistently high unemployment
- Greater acceptance of remote work
- Businesses seeking more flexible staffing models
- Increased access to digital platforms
- Growing demand for specialised skills
For many South Africans, gig work offers a pathway into the economy when traditional employment opportunities are limited. For businesses, it provides access to expertise without the long-term costs associated with permanent hires.
Gig economy examples
Gig economy examples span a broad range of industries and professions, such as:
- Software developers building websites or apps on a contract basis
- Graphic designers creating branding and marketing materials for multiple clients
- Freelance writers producing articles, copy and technical content
- Consultants providing specialist business advice on a project basis
- Ride-hailing drivers working through platforms such as Uber and Bolt
- Food delivery couriers delivering meals through on-demand apps
- Accountants and tax specialists supporting businesses during busy reporting periods
- Digital marketers managing campaigns for multiple clients
- Virtual assistants providing remote administrative support
- AI trainers, prompt engineers and data annotators helping organisations develop and improve artificial intelligence systems
The gig economy continues to expand as businesses increasingly engage independent professionals with specialist skills for short-term projects and flexible work arrangements.
The pros and cons of the gig economy
Whether you're considering freelancing full time or using gig work to supplement your income, it's worth weighing up both the opportunities and the trade-offs.
| Advantages | Challenges |
| Greater flexibility: Choose when, where and how you work, making it easier to balance work with family, study or other commitments. | Income variability: Earnings can fluctuate from month to month, making budgeting and long-term financial planning more difficult. |
| Multiple income streams: Work for several clients at once, reducing dependence on a single employer and creating additional earning opportunities. | Tax administration: Freelancers are responsible for managing their own tax affairs, including provisional tax payments where applicable and keeping accurate financial records. |
| Access to global opportunities: Digital platforms make it possible to work for clients around the world and, in some cases, earn foreign currency while living in South Africa. | No employee benefits: Most freelancers don't receive paid leave, retirement contributions, medical aid or other benefits typically offered by employers. |
| Specialised, meaningful work: Freelancers can focus on projects that align with their expertise and interests, often developing highly sought-after niche skills. | Finding consistent work: Building a steady pipeline of clients takes time and requires ongoing networking, marketing and continuous skills development. |
What is a side hustle?
While some people are pure gig workers, others have a permanent job and partake in extra work on the side.
“A side hustle is generally defined as anything outside your main source of income that adds money to your life,” says Nic Haralambous, entrepreneur and the author of How to Start a Side Hustle.
“It is not a side hustle if you've raised funding so it can replace your job, that's a startup. It is a side hustle if it adds to your main and existing income stream."
Haralambous believes that in a country like South Africa where savings are low, a side hustle gives you the opportunity to secure your financial future.
Unpacking the side hustle
Nic Haralambous talks to Investec's René Grobler about making a success of your side hustle.
Where South Africans are finding gigs
Popular global online marketplaces for digital giggers include Fiverr, Upwork and Freelancer.com where you can buy almost any service at very affordable rates, from someone to design your company logo to a copywriter who can optimise your dating profile. Like all demand-driven platforms, these sites are based on client reviews that build up trusted profiles and enhance your employability.
Local marketplace Aura Social lets businesses post projects and freelancers submit proposals for everything from web development to engineering gigs. Other options include GigsAfrika and NoSweat.
Most in-demand gigs in South Africa in 2026
The South African freelance economy is becoming increasingly sophisticated, with demand concentrated in skilled digital services rather than traditional gig work.
According to the 2026 State of the South African Freelance Economy report, digital marketing accounted for almost a quarter (24.4%) of all freelance projects posted on the Freelance Locals platform, followed by website development (8.3%) and broader development and IT services (7.2%).
The report suggests that businesses are increasingly turning to independent specialists for skills such as software development, digital marketing, design and virtual assistance.
Demand distribution
| Category | % of demand | Typical budget |
| Digital marketing | 24.4% | R500 - R30,000/mo |
| Website development | 8.3% | R15,000 - R60,000 |
| Development & IT | 7.2% | R5,000 - R50,000 |
| Virtual assistant | 5.6% | R500 - R8,000/mo |
| Design & creative | 5.6% | R1,000 - R5,000 |
| Admin & customer support | 5% | R5,000 - R20,000/mo |
| Photography & videography | 3.3% | R10,000 - R36,000 |
| Writing & translation | 2.8% | R1,500 - R4,000 |
| Graphic design | 2.8% | R5,000 - R20,000 |
| Accounting & tax | 1.7% | R20,000 - R40,000/mo |
Source: Top 10 demand categories by project volume. Source: Freelance Locals, 180 projects, 2024-2026.
How AI is creating opportunities for freelancers
One of the most significant changes in the global gig economy is the emergence of entirely new categories of work linked to artificial intelligence. Demand is growing rapidly for AI trainers, data annotators, prompt engineers and AI-enabled specialists who help organisations implement and manage AI tools.
According to Upwork, demand for specialised AI skills grew by 109% year on year in 2025. Rather than replacing freelance work, AI is creating new opportunities for workers who can combine technical expertise with creativity, judgement and industry knowledge.
As artificial intelligence continues to evolve alongside technologies such as quantum computing, professionals who build expertise in emerging fields are likely to find new opportunities in the future workforce.
In South Africa, demand for freelancers with AI skills already exceeds supply, according to the Freelance Locals report, with 8.9% of client project briefs requiring AI competency compared with a combined freelancer supply signal of just 5.3%, pointing to a growing opportunity for professionals who can combine specialist expertise with AI-enabled tools.
AI skills with the fastest growing demand
| Category | Increase in demand |
| AI video generation and editing | 329% |
| AI integration | 178% |
| AI image generation and editing | 95% |
| Data annotation and labeling | 154% |
| AI chatbot development | 71% |
| Generative AI modeling | 21% |
Source: Upwork In-Demand Skills 2026. Skills data was sourced from the Upwork Marketplace and is based on freelancer earnings across six work categories from January 1, 2025, to December 31, 2025, with demand originating in the United States.
Don't forget the tax man
One of the less glamorous realities of the gig economy is that earning extra income comes with tax obligations. Whether you're driving for a ride-hailing platform, freelancing as a designer or developer, or running a side business alongside a full-time job, any income earned outside your salary may need to be declared to SARS.
Depending on how much you earn, you may need to register as a provisional taxpayer, make advance tax payments during the year and submit annual tax returns. For South Africans working remotely for international clients or earning income abroad, tax obligations can become even more complex. Understanding your tax residency status, keeping accurate records and being aware of any double taxation agreements can help ensure compliance while avoiding unnecessary tax costs. Listen to the podcast below to learn more.
Everything Counts | Episode 14: The Essential Tax Guide for freelancers and digital Nomads
Are you earning extra income through a side hustle or considering working abroad as a digital nomad? Learn how to navigate your tax obligations in South Africa and beyond with insights from our experts, Bronwen Trower, Co-Portfolio Manager at Investec Wealth & Investments, and Nicci Courtney-Clarke, Head of Tax at TaxTim.
About the author
Ingrid Booth
Lead digital content producer
Ingrid Booth is a consumer magazine journalist who made the successful transition to corporate PR and back into digital publishing. As part of Investec's Brand Centre digital content team, her role entails coordinating and producing multi-media content from across the Group for Investec's publishing platform, Focus.
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