Local government has announced South Africa’s investment incentives, outlined in the 2025/26 Budget, reaffirming the country’s commitment to attracting foreign investment, stimulating local industry, and building sustainable economic growth. For international companies considering market entry into South Africa—or expansion across Africa—this could present a promising opportunity.
The 2025/26 Budget allocates 18 billion ZAR towards various incentive programmes, significantly up from 14 billion ZAR in the previous year. These initiatives are aimed at unlocking potential across high-growth sectors, including:
- Business Process Outsourcing (BPO): With South Africa already recognised as a global BPO destination, the extended grants and support will further enhance the sector’s competitiveness and job creation capacity.
- Automotive Industry Development: The continued support for the Automotive Investment Scheme signals strong confidence in the industry’s contribution to GDP and exports.
- Creative Industries: Incentives in the film and television sectors position South Africa as an ideal destination for international productions.
- Special Economic Zones (SEZs): Enhanced benefits and support for businesses within SEZs offer regional advantages, tax breaks, and streamlined processes.
Why This Matters to Global Investors
For European businesses—particularly SMEs in Germany—these developments signal a strong case for strategic expansion into South Africa. Access to a skilled workforce, robust infrastructure, and new incentives create a powerful value proposition for long-term success in Africa.
At InterGest South Africa, we specialise in supporting international companies with their market entry and operational setup in Southern Africa. Whether through our business process outsourcing services, compliance support, or local representation, our goal is to ensure your business journey is seamless, strategic, and compliant from day one.
As a BAFA-accredited consulting firm, German SMEs are eligible to receive funding through the German Federal Office for Economic Affairs and Export Control (BAFA) when engaging with us. This means lower entry costs and increased advisory support to navigate local complexities.
We specialise in:
- Legal structuring and setup
- Financial and tax compliance
- Business process outsourcing
- HR and payroll services
- Strategic expansion planning
- Ongoing administrative and governance support
Let’s Unlock Your Growth in Africa
With these new incentives, South Africa is signalling to the world that it’s serious about growth, innovation, and attracting foreign talent and investment. If you’re considering expansion or want to better understand how these developments affect your business strategy, get in touch with us today.
📩 Contact us to learn more or to book a consultation.
