Global Business Services Incentive(GBS)

Global Business Services Incentive(GBS)

The Global Business Services Incentive(GBS) creates an enabling environment for investors who want to establish or expand offshore delivery operations in South Africa. It offers access to deep domain skills, competitive operating costs and strong infrastructure. As a result, investors benefit from significant cost savings compared to many other global locations.

In addition, the programme supports companies that aim to deliver world-class services to international clients from South Africa. By positioning the country as a preferred offshore destination, the incentive strengthens export performance and promotes long-term sector growth.

The Department of Trade, Industry and Competition has partnered with industry stakeholders to strengthen this value proposition. Through this collaboration, government and private sector leaders seek to stimulate large-scale job creation, particularly for young people. At the same time, the initiative aims to increase export revenue and enhance South Africa’s competitiveness in the digital economy.

Industry Support and Sector Positioning

Business Process Enabling South Africa, the industry body representing the Global Business Services sector, has welcomed the revised incentive package. The organisation believes the updated structure improves South Africa’s position as a competitive offshore delivery location.

Furthermore, the revised framework responds to growing global competition. The digital economy continues to reshape service delivery models. Consequently, countries must offer compelling incentives to attract international contracts. The updated programme ensures that South Africa remains relevant and attractive in this evolving environment.

Eligibility Criteria for Applicants

To qualify, an applicant must meet specific requirements. Firstly, the business must register as a legal entity in South Africa in terms of the Companies Act, the Close Corporations Act or the Co-operatives Act.

Secondly, the applicant must remain in good standing with the South African Revenue Service and provide a valid tax clearance certificate. In addition, the company must comply with the Broad-Based Black Economic Empowerment Codes of Good Practice. It must submit a valid B-BBEE certificate or sworn affidavit as proof of compliance.

Moreover, the applicant must pay a minimum monthly wage of R5,000 per employee. However, where the company appoints inclusively hired resources, it may pay a minimum of R4,000 per month during the first twelve months of employment.

The applicant must also establish a new operation or expand an existing one to deliver qualifying global business services. The company may operate from more than one physical location within South Africa. However, it must submit its incentive application before engaging qualifying employees.

In addition, the business must secure at least a three-year fixed-term offshore contract. This requirement ensures stability and long-term sustainability. Finally, the project itself must demonstrate financial viability and operate as a going concern.

Strategic Impact on South Africa

This incentive strengthens South Africa’s reputation as a leading offshore services destination. It encourages international companies to invest locally and create sustainable employment opportunities. Furthermore, it supports youth employment and skills development within the services sector.

By combining competitive incentives, industry collaboration and regulatory compliance, the programme aligns public policy with private sector growth. Consequently, it contributes to economic transformation and export expansion in a highly competitive global market.

.