How Much Does It Cost To Start An Internet Cafe In South Africa

How to start up an internet cafe | Start Up Donut

An Internet café is a café that provides Internet access to the public. The fee for using a computer is generally charged as a time-based rate. The first Internet café was opened in South Korea.

How Much Does It Cost To Start An Internet Cafe In South Africa

To start a small internet cafe in South Africa, equipped with 5 computers, will require an investment of between R68,000 – R135,000.

An internet cafe with 15-20 computers will cost between R406,000 – R676,000 to start. This includes the computers, internet service providers and internet cafe software.

How to Calculate The Cost Of Starting An Internet Cafe In South Africa?

The cost of starting an internet cafe in South Africa will depend on the number of computers and services you plan to offer to your customers.

The basic business model of an internet cafe is that clients are buying time to use your computer and internet services. Therefore an internet cafe needs to provide higher spec computers and internet connection than a regular home set up.It will only be necessary to purchase equipment that’s in line with your business plan and service offering. 

The equipment you need to set up your internet cafe business in South Africa includes:

  • Client computers
  • A server computer that manages the client computers
  • Internet cafe software 
  • Internet service provider 
  • Networking hardware

If you plan on offering additional services such as food and drinks, then factor in the cost of setting up a kitchen on premises.

It is important to note that if you are serving food, you may also need a licence from the local municipality to allow you to prepare and serve food. This will come at an additional cost.

What Computers Do You Need To Start An Internet Cafe And How Much Do They Cost?

Computers in internet cafes are used all day, every day. So you will need fast and powerful desktop machines that can withstand daily use.

The good news is that you don’t need to break the bank to start your internet cafe business in South Africa. Instead of buying brand new computers, I would suggest you invest in high quality refurbished computers that function like brand new computers but come at second-hand prices.

You can save even more money by purchasing refurbished computer bundles. You can like QStore. Below is a table of refurbished computer console and monitor bundles that you can buy to start your internet cafe business in South Africa:

ModelFujitsu Q520 USFF + 22″ Fujitsu Monitor SetDell OptiPlex 9010 SFF + Dell 19″ Monitor SetHP Prodesk 600 G1 SFF + 19″ Monitor Set
Approximate PriceR6,510R6,220R5,960
Operating System (OS)Windows 10Windows 10 ProWindows 10
RAM4 GB4 GB4GB
Hard Drive500 GB500 GB320GB
ProcessorIntel Core i3 – 4th GenIntel i5Intel Core i3 – 4th Gen

Computer software is just as important as the hardware that you use. As a free alternative to the Mac OS or Microsoft Windows, use Linux and utilize the OpenOffice.org suite as a free alternative to the Microsoft Office suite.

Reduce maintenance costs and software corruption by installing a firewall on your routers to protect your servers from worms, viruses and attacks.

Also ensure that each computer has antivirus software installed to avoid viruses that may be brought in by clients downloaded files, external drives or CDs.

What Is Internet Cafe Software And How Much Does It Cost?

Internet cafe software allows you to easily manage your business from the server computer. This means that you’ll be able to control all the client computers, manage client accounts, set up security permissions, manage your prepaid or postpaid payment structures and get up to date reports.

You’ll want to protect and monitor the usage of your client computers so that no one uses your services for free.

Internet cafe software protects your client computers with a log-in page. Protected computers can only be opened from the server computer or when a client has opened a prepaid account. 

The client computer will be automatically protected again with the login page when the client’s prepaid time expires or when they finish their session. 

There are paid and free internet cafe management programs available on the market with varying capabilities. The table below compares the features of the three top programs to get you started. 

Antamedia Internet CafeCyberCafeProPanCafe Pro
Price(R670 – R5,500)FreeFree
Windows 10 compatibleYesNoYes
Prepaid pricing structuresYesYesYes
Bandwidth monitoringYesYesNo
Client membership managementNoYesYes
Control and bill for printing servicesOnly for Standard, Premium and Enterprise licensesYesYes

The Pros And Cons Of Starting An Internet Cafe In South Africa

It’s always valuable to understand the advantages and disadvantages of any business idea. We’ve compiled a quick list of what this could look like for an internet cafe in South Africa.

Pros:

Low capital investment. The main costs for starting an internet cafe are the computer hardware and software. A startup budget from R68,000 – R135,000 for a small internet cafe is relatively modest compared to other types of businesses. 

Competition is low. Many people have computers and internet access at home so there are fewer internet cafes around than there were a couple of years ago. Today the opportunity lies in providing a community atmosphere that alleviates the high mobile data rates that South Africans are subject to. The growing popularity of online gaming and esports opens a door to a new customer base that did not previously exist.

Expand the business with related services. Internet cafes are mainly a source for clients to use the internet and computer services. However, it would be simple and beneficial to you to expand the business with related services that appeal to the modern client base. Additional services might include printing services, food and beverage, esport tournaments, or private working spaces.

Cons:

Scaling the business is challenging. There are limited options as to how big you can scale an internet cafe business. You can either open and sell franchises or open a network of internet cafes around a city or community. Multiple successful internet cafe businesses can be established yet they will always remain at the same level with similar service offerings.

Constantly update and replace equipment. Clients visit internet cafes for fast and powerful computers. The constant use of computers means that their wear and tear happens quickly. Computers require regular maintenance, constant cleaning and every 2-4 years equipment will need to be replaced. Additionally, software programs will also need to be regularly updated to meet the needs of clients.