![[South Africa] The Global Business Services incentive will create employment opportunities for the youth, Trade Minister](Images/2018/05/dti_south africa.jpg)
[South Africa] The Global Business Services incentive will create employment opportunities for the youth, Trade Minister
The Minister for Trade and Industry, Dr Rob Davies, said the Global Business Services (GBS) incentive which became effective from January 1, 2019 will create employment opportunities for youth in South Africa. He launched the Global Business Services (GBS) incentive last month at the SA House in London, United Kingdom.
Davies says the opportunities will be in the areas of medium to high complexity jobs, youth will be exposed to servicing major global brands out of 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 global companies that are looking to optimize their customer solutions at a globally competitive rate, "says Minister Davies.
The sector has an annual growth rate of 22% on average and it is expected that the growth rate will continue to increase over the next 5 years. Davies shows that through constant monitoring of the sector, global benchmarking study and investor engagements, the dti has been able to present a revised Global Business Services incentive.
"The key components of the GBS incentive include a 3 tier incentive program that includes a non-complex job, medium complexity job and high complexity job, with an increase in value across all 3 tiers. A further change includes a reduction in the minimum criteria of 50 jobs across all levels or work to a minimum of 30 jobs for medium to high complexity jobs. To ensure that South Africa delivers the best quality services at the right price, the eligibility criteria were amended to include a minimum salary threshold of R60,000 per annum for entry level agent roles," says Minister Davies.
Although South Africa offers significant cost arbitrage in comparison to their source markets such as UK, US and Australia, with the added benefit of the incentives, South Africa will be a significant share of the opportunities presented by global industry.
The dti has partnered with the industry to develop a compelling value proposition to investors which will support government's objectives of job creation within South Africa, primarily for youth and growth.
BPeSA, the Industry body representing the Global Business Services Sector in South Africa, welcomes the revised incentive package that will ensure that South Africa is highly competitive as an offshore location for global business services. economy and the journey into the industry.
South Africa's Value Proposition for global business services is underpinned by good quality English-speaking talent, significant cost savings, a strong foundation in contact center and niche services, evolving capabilities for next-gen services for digital contact centers and world class infrastructure.
The new Global Business Services incentive has replaced the previous Business Process Services Incentive.
