CDC in bid to lure investors

New policy initiates string of incentives

IN a bid to attract more local and foreign investment, the Coega Development Corporation has initiated a string of incentives for investors looking to get a slice of the potential that the industrial developments zones have to offer.

The aim of the incentives is to drive investor appetite and support existing investments in the region.

Leadership in the Coega Development Corporation (CDC) initiated a Special Economic Zones policy last year which proposed a suite of incentives to make investment more attractive in the region.

These new incentives for investors aim to address those challenges.

According to Ayanda Vilakazi, CDC head of market- ing and communication, the organisation has long harboured ambitions of implementing a system that gives incentives to investors.

“Our ambitions as an IDZ were limited by a small and comparatively uncompetitive suite of incentives, on a global scale, linked to the initial IDZ policy,” he said.

“The SEZ legislation has changed that – and we are starting to see the difference the policy is making on the ground.”

Vilakazi said with the new incentives made available, domestic and foreign investors could leverage their global competitiveness and be on the receiving end of other rebates through specialised customs-controlled areas available at the Coega IDZ.

Current investors in the region also stood to benefit, he said.

Among the newly announced SEZ incentives is that the Coega IDZ will in fu- ture be able to offer qualifying investors a reduced rate of 15% for corporate income tax and VAT and customs duty suspension.

In addition, cash grants will be made available to existing manufacturers at a rate of 30% to 50% of qualifying capital costs.

The incentives would also see investors receive an employment tax allowance for employees earning up to R6 000, the organisation said.

Manufacturers of clothing, textiles and footwear, CMT operators and non-automotive leather and leather goods manufacturing can benefit from the organisation’s production incentive programme, where they can earn tax-free cash benefits.

In addition, the aquaculture development and enhancement programme has a cash incentive grant aimed at promoting investment in the aquaculture sector.