National reforms can boost economy by R426bn and create thousands of jobs

(Media Release: Issued and provided by the Western Cape Government)

The South African economy can be significantly boosted, and the growth of start-ups and the private sector – through businesses big and small – that create vital jobs, catalysed through two regulatory reforms: lifting exchange controls on the offshore transfer of intellectual property and introducing tax incentives for investors in start-ups.

“Our research shows that changes to the Exchange Control Regulations relating to the offshore transfer of intellectual property and offshore movement of money could create a net benefit to the South Africa economy of R426 billion over the next five years," said Provincial Minister of Finance and Economic Opportunities, Mireille Wenger.

"In addition, SARS could collect a net increase of R315 billion in tax revenue over the same period.

"These reforms would not compromise attempts to comply with the Financial Action Task Force standards," she explained.

These reforms will also allow South Africa to remain competitive against other global destinations, including competitors on the African continent like Nigeria, Kenya, and Egypt.

Read the full press release here which further explains the proposals shared with Minister Godongwana, the South African Reserve Bank and the South African Revenue Service, to offer a path towards achieving rapid growth and expansion in the start-ups sector.