Incentives for business in Cape Town
We are finding innovative ways of attracting investment and business to ensure that our economy grows and that more job opportunities are created for residents. We wish to create a sustainable Cape Town; a city which stimulates an economic-enabling climate and is progressive and dynamic in its approach to environmental security. We are constantly examining how we can work better with the private sector to enable this vision.
Investment incentives in job creation
The City’s
Investment Incentives Policy focuses on using financial and non-financial incentives to boost investment and to stimulate economic growth and employment creation.
These incentives are aimed at investments in areas of high unemployment and within key sectors. It sets out a package of incentives that, combined with the range of incentives offered by provincial and national government, attract investment and influence investment decisions.
Depending on the sector in which the investment is being made, the number of jobs being created and whether or not the proposed investment will be made in a particular area, the policy presents a package of incentives that are financial and non-financial.
Non-financial incentives:
- Single-point investment facilitation
- Development application fast tracking (five days for completed building plans; three months for completed land-use applications)
- Regularly updated spatial economic information
- Access to skills development opportunities
- Biodiversity offset (Atlantis only)
Financial incentives:
- Application fee exemptions
- Discounted development charges
- Electricity tariff reduction
- Broadband connection fee waiver (located within 300m of City network)
Biodiversity offsets
Cape Town is one of the global hotspots for biodiversity with an amazing 9000 different plant species, making it the most diverse floral kingdom in the world. At the same time, the City is experiencing massive growth – economically and demographically – with an Integrated Development Plan aiming to reduce poverty and achieve greater economy freedom.
Some of this economic development has caused severe reductions in natural habitat. The City is therefore working on a biodiversity offset framework to mitigate residual environmental impacts that will arise in pursuing developmental targets.
The Atlantis industrial incentives were approved by the City of Cape Town in 2013. Biodiversity offsets were included in this targeted investment incentives scheme. We proactively purchased key biodiversity land outside the urban edge to serve as a mechanism to facilitate development.
Therefore, whatever biodiversity is lost to development is offset by the proactive purchasing of biodiversity outside the urban edge.
As this property will be owned by the City, the protection of this biodiversity will continue. Developers who require environmental authorisation in terms of the 2010 NEMA EIA regulations may apply to use the City’s biodiversity offset.
Did you know?
An Opportunity City: To date, we have acquired over 350ha of key biodiversity land for offsetting the much needed development in Atlantis.
Urban Development Zones
In line with many countries, South Africa has a number of urban areas that are impoverished and suffering from extensive urban decay. In order to address these concerns and maintain existing infrastructure, the national government has increasingly used tax measures to promote urban renewal and development.
The UDZ promotes investment by the private sector in the construction or improvement of commercial and residential buildings, including low-cost housing units, situated within demarcated UDZs.
The incentive also intends to encourage investment in highly populated areas, central business districts or inner city environments and areas with existing urban transport infrastructure for trains, buses or taxis.
Read more about the Urban Development Zone in Cape Town.
Local area economic development incentive
Local economic development is central in creating an environment for growth, and to increasing capacity and employment opportunities within cities.
The City’s Local Area Economic Development (LAED) initiatives can be categorised into the following functions:
- Improving access to economic opportunities for various target groups in prioritised areas
- Improving access to economic opportunities
- Acting as a conduit for the City’s economic services
- Lobbying stakeholders to shift practices, resources and policy towards improving the economic conditions of marginalised areas
The City is divided into six LAED areas, according to the dominant economic sector or economic need. In this way, LAED interventions are able to have a bigger impact.
The areas are the following:
- Tygerberg District
- East District
- North-West District
- South District
- South-East District
- South-West District
LAED areas are aligned, as much as possible, to the City’s
municipal wards.
Enhanced telecommunication services
The commercial building connection programme is part of the City’s continuing efforts to boost Cape Town as a business and investment-friendly city. The City’s goal is to make sure that affordable broadband services are widely available to businesses and entrepreneurs.
The City is in the process of constructing a network of optic fibre cables and associated telecommunications facilities that will eventually extend throughout the Cape Town metro area. This infrastructure already connects major commercial centres with areas such as Atlantis, Khayelitsha and Mitchells Plain. This infrastructure is available for use by licensed telecommunications companies to enhance and extend their services such as fibre-based connectivity into offices, factories and other commercial buildings.
The City has published a schedule of tariffs that allows licensed telecommunications service providers to lease elements of the City’s cable network as needed. If you require fibre-based broadband services, request that your service provider approach the City about leasing the necessary infrastructure.
Telecoms Client Services
Telephone:
021 444 0444
Email:
citytelecoms.clientservices@capetown.gov.za
Strong infrastructure and transport services
We are positioned well for business with excellent infrastructure, transport and services which facilitate business, both internally and across Africa.
Rates rebates and service concessions for organisations
The City of Cape Town offers rebates and service concessions to non-profit or who exist for public good, such as youth charities, homeless shelters or NGOs. For-profit old age homes may be eligible for free service allocations.
Industry partnerships and economic support programmes
To build and sustain business, both large and small, the City of Cape Town forms strong partnerships and support relationships with key industry bodies and local areas and communities. We also run a series of integrated programmes aimed to grow economic activity in our city.
See our detailed page on
industry partnerships for more information.
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