Incentives put R29bn of investment to work

Posted On Thursday, 24 February 2005 02:00 Published by eProp Commercial Property News
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Twenty-five investment projects worth R29bn were approved under government’s strategic investment projects incentive programme between April 2002 and March last year, according to a report tabled in Parliament this week.

Infrastructure IndustryTwenty-five investment projects worth R29bn were approved under government’s strategic investment projects incentive programme between April 2002 and March last year, according to a report tabled in Parliament this week.

These projects received tax incentive allowances amounting to R6,7bn and were projected to create 2728 direct and 63932 indirect jobs, giving an average allowance a job of R100197.

The programme, aimed at encouraging the development of large industrial projects, provides tax allowances to companies which invest a minimum of R50m in designated industrial sectors.

The total budget for the programme was set at R10bn over four years that meant that at the end of March last year, about R3,3bn remained for new applications until July this year, when the project terminated.

A total of 40 applications reflecting a total investment of R40bn were received, of which 29 were evaluated by an adjudication committee consisting of representatives of the trade and industry department, national treasury and the South African Revenue Service. Only four applications were rejected.

The biggest project to receive an allowance under the investment scheme was the R17bn planned investment by Pechiney in an aluminum smelter at Coega. This was followed by the Hillside Aluminium — a BHP Billiton subsidiary — investment of R4bn in a new plant at Richards Bay.

Sasol invested R2bn in an acrylic acid plant in Sasolburg. Other approved projects included Sugar Beet (R866m) for the cultivation and processing of sugar beet in Eastern Cape, Sasol Octend (R870m) and PG Bison (R700m) for a particle board plant in Eastern Cape.

Seven of the approved projects are located Gauteng, three in Western Cape, four in KwaZulu-Natal, seven in Eastern Cape, three in Mpumalanga and one in Free State.

Two of these are in the paper and pulp industry, two in agriprocessing, nine in the metal and allied industries and 12 in the chemicals industry.

It is estimated that at least R3,5bn will be spent on infrastructure and the projects will contribute R1,6bn towards small business development.

 

Last modified on Monday, 04 November 2013 11:47

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