South Africa offers cost savings of 50-60% over UK onshore operations – and new incentives are set to cut costs by a further 20%, putting South Africa on a par with Egypt and Malaysia.
There are currently two incentives avialble to investors, the first incentive consists of a tax-exempt grant for each offshore job created and sustained, to be paid for three years. Additional bonus payments are available where the number of jobs created is greater than 400 or 800. The payments may be used at the investor’s discretion to offset any type of expenditure.
The second provides free telecom services to new offshore investors coming to the Western Cape for a period of six months, further reducing the local BPO cost basket. More more information on this incentive click here to access the application form.
For a full breakdown of what the new incentive scheme entails visit our news section.
Telecommunication costs, previously high relative to those of competitor destinations, have reduced dramatically in recent years, by an average of 38% per annum. On the back of these new incentives the savings will increase even further.
See below a 14 year comparison of the Rand / Dollar and Rand / Pound exchange rate.