I thought I\u2019d get ahead of the queue, leapfrog over SONA, and get my ten cents worth in with our new Minister of Finance. Budget Speech 2022 is where the money will be spent.<\/p>\n\n\n\n
In my blog last week I encouraged corporate South Africa to relocate their head offices from Sandton to Soweto, highlighting the obvious economic benefits to the community that would flow from such a choice.<\/p>\n\n\n\n
But as they say, nothing for mahala.<\/p>\n\n\n\n
Why not incentivise the process and leverage the brute force of corporate greed. If the NPV exceeds the threshold, they\u2019ll build it. Government offers financial incentives to business all the time. Take the Department of Trade, Industry and Competition as a fine example. Their Special Economic Zone (SEZ) strategy offers a package of tax incentives including the employment tax incentive, building allowance, and reduced corporate tax rate to companies that meet the qualifying criteria.<\/p>\n\n\n\n
Drawing upon the analysis of a prominent local think tank, government would appear to have spent the best part of R25bn on SEZs and another three letter acronym, IDZs (Industrial Development Zone). Only three of the 11 proclaimed zones would appear to have attracted meaningful commercial activity, all are loss-making in the sense that rental income does not cover operational costs, and all require government subsidies to survive.<\/p>\n\n\n\n
What better time to rethink how you\u2019re going to spend taxpayer\u2019s money now that you\u2019ve settled in your new office and 23 February is looming on the horizon. <\/p>\n\n\n\n
Let\u2019s give Soweto a chance! <\/p>\n\n\n\n
We could even use the same three letter acronym SEZ (Soweto Economic Zone) to save some money. Government won\u2019t have to spend a dime. No subsidies for infrastructure required. It\u2019s already built and they have come. And the city is already smart.<\/p>\n\n\n\n
A suggestion for your Budget Speech:<\/p>\n\n\n