Incentives

South Africa's minister of finance, Pravin Gordhan, and representatives of the Reserve Bank, business and labour embarked on an international roadshow last week to pass on a single message to investors: the country is stable and has healthy economy, able to overcome challenges.

Manufacturers need to work with the state - which has several incentive and support strategies - to raise South Africa's competitiveness, says the trade and industry minister. The clothing and textile sector, for example, has several clusters and programmes to help manufacturers.

Incentives are to be offered to graded hotels across South Africa to redesign for universal accessibility and energy efficiency, Tourism Minister Derek Hanekom said at the opening of Cape Town's Park Inn Hotel, where a third of the staff are deaf.

The government will continue to improve its incentive scheme for South Africa's film and television industry, Trade and Industry Minister Rob Davies told members of the industry on Thursday, noting that film and TV production are significant contributors to the country's economy.

Companies undertaking scientific research and development in South Africa are eligible for a 150% tax deduction on R&D expenditure, the Department of Science and Technology announced on Thursday. The incentive is available to businesses of all sizes and in all sectors as long as they are registered in South Africa.

South Africa's economy needs to undergo a structural shift, away from exporting mining commodities to producing value-added products, if it is to create jobs and growth, Trade and Industry Minister Rob Davies said at the unveiling of the latest version of the country's Industrial Policy Action Plan.

The Department of Trade and Industry has published revised incentives for manufacturers that aim to offer better support to small- and medium-size enterprises, a spokesman said last week. Changes include lowering the caps on incentives for capital investments, green technology and improved resource efficiency.