2014 Budget Focus on Industrial Incentives

According to the 2014 Estimates of National Expenditure, tabled by Finance Minister Pravin Gordhan on Wednesday, incentive development and administration will make up well over half of its total budget.

According to the 2014 Estimates of National Expenditure, tabled by Finance Minister Pravin Gordhan on Wednesday, incentive development and administration will make up well over half of its total budget.

Incentives for industrial development will receive the bulk of the trade and industry department's R9.8 billion budget in 2014/15.

"This is allocated to incentives such as the manufacturing development incentives -- which contribute to the development of manufacturing industries -- and the special economic zones investment incentives."

These attracted investment to further the objectives of the industrial development action plan.

Spending on these grew by an average of 25 percent a year since 2010, largely due to the introduction of the special economic zones (SEZs) investment incentives, and the economic competitiveness and support package, which was introduced following the recession.

"The special economic zones investment incentives schemes encourages increased investment in South Africa through provision of infrastructure."

The budget for the SEZs was revised downwards by R553 million, to R3.6 bn, so preparatory work could be done before the project became operational.

"This will be used mainly for conducting pre-feasibility and feasibility studies for the proposed SEZs in all nine provinces; infrastructure projects in the existing industrial development zones; and newly-designated special economic zones through the incentive scheme."