President Cyril Ramaphosa has hailed the Atlantis SEZ
as a “dawn of a new era” in Cape Town’s green economy. The establishment of this green technologies hub in the Western Cape includes activities such as alternative waste management, energy-efficient technology, alternative building material and many other clean technologies. As a critical economic policy instrument for promoting future-forward industrialization, the SEZ has to date over 30 foreign and local companies that have taken up the incentives to operate and develop here. This has led to over R500 million in new industry developments in the Atlantis SEZ already.
SEZ incentives include:
- Preferential 15% Corporate Tax and Tax Relief.
- Building allowance and Tax Relief.
- Employment Tax Incentives.
- Customs Controlled Area Tax Relief.
Business & Industrial Incentives
The City of Cape Town is always finding innovative ways of attracting investment from local and foreign investors. After all, it’s critical that the economy is encouraged to grow and that more job opportunities are created in the region. A sustainable Cape Town with an economic-enabling climate and progressive, dynamic approach to business, is very important to institutions here.
Working with the private sector has become a key pillar and has led to the City’s Investment Incentives Policy. This focuses on using the city’s financial and non-financial incentives to boost investment and to stimulate economic growth, as well as employment creation:
- Non-financial incentives include single-point investment facilitation, development application fast-tracking (five days for completed building plans), three months for completed land-use applications, regularly updated spatial economic information, access to skills development opportunities, as well as biodiversity offsets (currently Atlantis SEZ only).
- Financial incentives include application fee exemptions, discounted development charges, electricity tariff reduction, and broadband connection fee waivers (located within 300m of city network).
New Investment Incentives Policy 2020
The City Council approved the extension of investment incentives in October 2019 to a further six areas in Cape Town, namely:
- Atlantis Industria;
- Triangle Farm;
- Parow Industria;
- Sacks Circle;
- Lansdowne Industrial; and
- Elsies River
The primary objective of the Investment Incentives Policy is to provide investment incentives in areas where there is significant potential for job creating investment but where challenges to investment currently exist.
By targeting specific areas which have met a set of criteria, the City aims to:
- Maximise the socio‐economic return of incentives by focusing on areas with strong potential but which are currently underperforming
- Assist in removing area‐specific blockages to investment or systemic market or regulatory failure
- Enable the achievement of development objectives in specific areas, and
- Assist with addressing issues of spatial inequality
The incentives are made up of non-financial and financial incentives and include:
- Tangible ways where we can help businesses grow
- Prioritised single-point investment facilitation
- Building plan application fast-tracking (5-day turnaround)
- Land use application fast tracking (3 months)
- Occupancy certificate fast-tracking (5 days)
Financial incentives which include the City’s commitment to making financial provision to cover costs. These include:
- Building plan application fee waiver
- Land use application fee waiver
- Development contribution deferral and write off up to R1 million
- Special electricity tariffs for a period of two years.
“I am proud that these incentives add another real mechanism to ensure Cape Town remains regionally and globally competitive, can attract more investment and increase job creation in the metro.”
– Ald James Vos, Mayoral Committee Member for Economic Opportunities and Asset Management
Want to know more about the incentives in place for investors and enterprises in the Western Cape and Cape Town? Contact us for detailed information!