The Global Business Services (GBS) incentive, which became effective from 1 January 2019, will create employment opportunities for youth in South Africa (SA), said South Africa’s Trade and Industry Minister Rob Davies
Davies added that the opportunities will be particularly in the fields of medium to high complex jobs and that the youth will be exposed to servicing major global brands from South Africa.
“Areas of special interest by potential global investors are Legal Services, Finance and Accounting and IT Services. South Africa’s Value Proposition remains a compelling business case for most global companies that are looking to optimise their customer solutions at a globally competitive rate,” he commented.
The sector has demonstrated an annual growth rate of 22 per cent on average year on year and it is expected that the growth rate will continue to increase over the next 5 years.
The Minister indicated that, through continuous monitoring of the sector, global benchmarking study and investor engagements, the Department of Trade and Industry (dti) has been able to present a revised GBS incentive.
“The important components of the GBS incentive include a three-tier incentive programme which includes a non-complex job, medium complexity job and high complexity job, with an increase in value across all three tiers.”
“A further change includes a reduction in the minimum criteria of 50 jobs across all levels of work to a minimum of 30 jobs for medium to high complexity jobs. To ensure that SA delivers the best quality services at the right price, the eligibility criteria were amended to include a minimum salary threshold of US$4300 annum for entry-level agent roles,” he highlighted.
The dti has partnered with the industry to develop a compelling value proposition to investors which will support the government’s objectives of job creation within South Africa, primarily for youth and to increase export revenue.
BPeSA, the Industry body representing the GBS sector in South Africa, welcomed the revised incentive package, which will ensure that South Africa remains highly competitive as an offshore delivery location for the GBS in an increasingly more competitive global market impacted by the digital economy.
