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Measuring Government Business Incentive Scheme – Learning Brief

June 2021

The South African government is committed to developing the economy, creating employment, and attracting foreign investment. Investment incentives are used to mitigate against the cost or uncertainty of doing business in South Africa, and to upgrade or sustain production and employment, especially in priority sectors as set out in the NIPF, the NDP, the 9 Point Plan, and the post-COVID Economic Reconstruction and Recovery Plan (ERRP).

The South African government sees business incentives as an important mechanism to raise competitiveness, address historical inequalities and increase the participation of historically disadvantaged groups in the economy. Investment incentives are viewed according to their typology or the nature of the outcome they are trying to achieve. The following types of investment incentives are typical of the South Africa incentives landscape:

1. Direct financial incentives: Including grants; loans at low interest.
2. Indirect fiscal incentives: including tax rebates and tax holidays.
3.Other non‐fiscal incentives: including regulatory and administrative concessions; and subsidised or reduced service costs.

Report Name
Measuring Government Business Incentive Scheme – Learning Brief
Author
Phillip Browne
Partner
DPME
Categories
Government, Publications, South Africa
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