Upington Special Economic Zone

Colleagues

Skills development strategies and frameworks for SEZs, including the the Upington SEZ, are being formulated jointly by the Department of Trade and Industry (the dti) and relevant international experts and national authorities. These include supplier development programmes to develop South African-based businesses in and around SEZs.

The Upington SEZ provides an investor-friendly business environment. Companies that intend investing in the SEZ could potentially benefit from the following incentives offered by the dti: 

  • 15% corporate tax
  • Building tax allowance
  • Employment tax incentive
  • Customs-controlled area (VAT-exempt and duty-free) 
  • 12I tax allowance designed to support greenfield investments

The South African government has also introduced a number of demand-side support mechanisms aimed at encouraging businesses to become more energy efficient. These include:

  • Environmental tax breaks and tax allowances (from the South African Revenue Service)
  • Environmental and competitiveness improvement incentives (from the dti)
  • Demand-side management incentives (from Eskom)
  • Investment incentives and grants (from the dti)
  • Subsidised interest rates (from the Industrial Development Corporation)

Depending on the nature of the investor proposal, additional incentives may be negotiated with the Northern Cape provincial government and local municipalities. In addition to these investment incentives, the Upington SEZ value proposition includes:

  • Its proximity to the largest renewable energy project in sub-Saharan Africa, with at least 5GW of solar-powered renewable energy projects planned for the Northern Cape and adjacent regions in the so-called Solar Corridor
  • The integration of up- and downstream players in the renewable solar energy industry in one industrial park, supporting the drive of the Department of Energy to establish solar farms for large-scale electricity generation
  • Access to an international airport with cargo-handling facilities and a runway that can accommodate freight transport aircraft of any size
  • A vibrant, growing city with new and modern amenities to accommodate the influx of people into the area
Sez Tax Incentives Guidelines 1
Sez tax incentives guidelines