07 Mar 2017

Following the closure of BCL Mine in Selebi Phikwe which was the main economic driver of the SPEDU region, government made a commitment to revitalise the economy of area and bring in more investors to the region.

Cabinet therefore set up the Economic Revitalisation Strategy for the SPEDU Region- task force team that would advise government on how the revitalisation could be achieved.
The team came up with a report recommending incentives for prospective investors.

When launching the incentives for potential investors in the SPEDU region in Selebi Phikwe on Monday, the Minister of Investment, Trade and Industry, Mr Vincent Seretse said the incentives were expected to stimulate economic growth and the diversification portfolio of the regional economy through private sector investment, technology development, market access and job creation.

Further, he said the incentives were designed in such a manner as not to create businesses that were dependent on government.
He said six categories of incentives have been put in place which include Fiscal Incentives, Government Off-take, Provision of Land, Input Costs, SPEDU Region labour Laws and One Stop Service Center. “The Fiscal Incentives include five per cent corporate tax for the first five years and 10 per cent corporate tax thereafter. A sub category of Fiscal Incentives is provided in line with SACU provisions and provides for zero customs duty on imported raw materials,” he said.

He added that the rebate of Customs duties and Value Added Tax under Schedule 4-Rebate Item 470.03 and VAT Act Third Schedule-Item 470.03 for manufacturing done exclusively for export outside Common Customs Area as well as rebate of Customs duties and VAT for importation of raw materials under Schedule 3 of customs tariff and VAT Act have been put in place.
The minister said there was direct government off-take on procurement of at least 30 per cent of quality goods produced locally a move he said was is in line with Economic Diversification Drive mandate.

Minister Seretse went on to state that the incentive for provision of land was a minimum 50 years for land leases while input costs, he said the region would provide internet connectivity with bandwidth that promoted business competitiveness as well as preferential ICT rates.
“The SPEDU Region Labour Laws category provides for SPEDU region employer and employee relations and is geared at providing a work environment which promotes productivity and harmonious employer/employee relations,” he said.

Mr Seretse indicated that the One Stop Service Center category offered four incentives which entail a dedicated and empowered One-Stop Service Centre for the SPEDU region, delegation of all authority and responsibility to the SPEDU Company to issue licenses and permits as well as streamlined processes for issuance of work and residence permits under One-Stop Service Centre.

Further, he said SPEDU would conduct a Strategic Impact Analysis and issue all-inclusive Environmental Impact Assessment permits for investors.
“The investment incentives designed specifically for the SPEDU region and those for outside the region are meant to address specific industry bottlenecks and business competitiveness requirements and compare favourably with the country’s current tax profile,” he said. ENDS