South Africa is considering expanding a 15% corporate tax rate, about half the standard rate, to all special economic zones as part of efforts to revive its manufacturing sector and attract new investment. Currently, seven of the country’s 13 economic zones lack access to the discounted rate. The proposal follows World Bank recommendations aimed at improving the competitiveness of industrial hubs and reversing decades of manufacturing decline, with the sector’s share of GDP falling from about 25% in the 1980s to roughly 12% today. The initiative complements other industrial support measures, including discounted electricity tariffs for major ferrochrome producers. If approved, the reforms could strengthen South Africa’s appeal to foreign investors and encourage value-added manufacturing. The push comes after South Africa lost its top spot on the African Development Bank’s Industrialization Index to Morocco earlier this year.
Semafor