9 Dec 2021

Global Business Services Incentive

by | posted in: Financial Assistance | 421

“Areas of special interest by potential global investors are legal services, finance and accounting and IT services:. “With the added benefit of the incentives, South Africa will be able to attract a significant share of the opportunities presented by global market which this sector presents.“The dti has partnered with the industry to develop a compelling value proposition to investors which will support government’s objectives of job creation within South Africa, primarily for youth and increase export revenue,”. According to the dti the sector has reported an average annual growth rate of 22% and the growth rate is expected to increase over the next five years.

Global Business Services-01

The Global Business Services Incentive for the global business services sector will create employment opportunities for youth in SA. The Global Business Services incentive – which came into effect on January 1, 2019 – was first launched last month by the minister in London. It replaces the previous Business Process Services Incentive.

The dti had revised the package after continuous monitoring of the global business services sector, a global benchmarking study and investor engagements. Through the incentive, youth will have opportunities in medium to high complexity jobs linked to major global brands, the department explained.

Grant calculation & disbursement

  • The base incentive is calculated on projected offshore jobs to be created based on a tapering scale and is awarded on actual offshore jobs created as per the full time equivalent definition.

  • The base incentive is paid for a period of five years (60 months) from the date which offshore job is created.

  • The base incentive will be determined at application stage depending on the full loaded operating costs.

  • The approval of base incentive will be granted for the first year at application whereas the subsequent years projections are accepted and reviewed annually in April, subject to performance in the preceding year(s).

  • The approval of the bonus incentive will be approved as a percentage of the base incentive in the year when the targets are exceeded – payable only in the fifth (5th) year.

  • The base incentive will be disbursed quarterly based on jobs created. A minimum of 10 jobs must be created to qualify for the first disbursement

  • Bonus incentive is disbursed once at the end of 5 years.

Global Business Services-02

Should you be interested in applying for the business grant, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Global Business Services Incentive.

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