Cape Town - The Minister of Finance Pravin Gordhan today revealed plans to provide R25 billion over the next six years to stimulate industrial development zones, boost investments in enterprises and job creation, support green initiatives and to get the private sector to partner with the public sector to invest in infrastructure.
Presenting the Medium Term Budget Policy Statement in Parliament, Gordhan said the package would include temporary mechanisms to bolster productivity and innovation in industries that have demonstrated long-term competitive potential.
Incentives are under consideration to attract businesses from employment-intensive industries and services into industrial development zones, which have the potential to export, become part of global supply chains and competitive logistics hubs.
Funding for the package over the next three years will come from that contained in the available fiscal envelope.
Gordhan said the R25 billion would include R8 billion in tax incentives for recently approved projects in the area of industrial development, technology support and training.
It would also include regulatory reform to assist small businesses, support for job creation and training projects and support to develop black businesses, including preferential procurement and finance facilities.
Added to this, export diversification would be encouraged, including forging new trade partnerships with fast growing emerging economies, while work would continue towards achieving regional integration in Sub-Saharan Africa.
Trade, investment and energy policies would also be aligned to support the transition to a green economy, including private-sector participation in South Africa's renewable energy production programme.
During a media briefing held ahead of the speech, the minister said the details of the package would be revealed by Minister of Trade and Industry Rob Davies soon.
