South African Business is an annual guide to business and investment in South Africa. Published by Global Africa Network Media in Cape Town, the 2016 edition is in its fourth year of publication.
The publication provides up-to-date information and analyses of the country's key economic sectors, as well as detailed economic overviews of each of the nine provinces in South Africa.
FOCUS business people
FOCUS business people and tourists can land at OR Tambo International Airport and come straight into the Inner City. This is an opportunity which we can maximise upon and one that we cannot afford to miss,” elaborates Ramoreboli. The City of Johannesburg has been able to use the UDZ as a catalyst for development, stresses Naidoo. “Over the years, we have seen that it is possible to create wall-to-wall thematic precincts by attracting the right kind of investors. In the same vein, we realised that it was foolhardy to develop one building and skip the next, because, in essence, what we would be doing would simply bring down the value of the ones that have been developed. Hence if we are to develop the inner city, then let it be on a wide scale.” “In order for the UDZ to be effective, there needs to be a connection that will make economic sense for the City, while transforming the Inner City at the same time. On that note, Africa’s tallest and the biggest retail complex and commercial node, the Carlton Centre, will soon be undergoing a facelift and reconfi guration which will see the creation of Film District and the resuscitation of the Carlton Hotel,” reveals Ramoreboli. “In this way, it is hoped that the City will become even more dynamic and attractive and add to its new crop of already diversifi ed investors streaming into the Inner City.” Ramoreboli points out that this will augur well for the City’s tourism initiatives as well as its efforts to attract the BRICS Bank into the Inner City – which is already a fi nancial hub in its own right. When measured against other recipients of the UDZ tax incentive, the City of Johannesburg has been able to attract more investment than the rest combined, and this is all thanks to aggressive marketing efforts and the city Council’s’ commitment to improving the investment climate, she continues. “This incentive enables property owners to increase the value of their properties and improve their earning capacity within the UDZ. Corporate or small investors who own buildings that have degenerated can now restore and renovate them, and recover the money spent. No matter what other sources you may get your income from, one can deduct from their taxable amounts any money spent on building or refurbishing within the UDZ,” adds Naidoo. “It should be government’s role to facilitate equitable solutions with regards to sharing space within the City because there will always be a contestation between the rich and the poor and as government we need to mediate and fi nd solutions,” concludes the MMC, Ruby Mathang. internatio investors to join th of the Ci Inner Cit UDZ tax UDZ is av investors refurbish located i It comes on invest renovatio For clarit Lebo Ra Deputy D Phone: + Email: leb www.j Restore, Renovate and Recover Joburg’s UDZ Boundaries There are signifi cant fi nancial benefi ts that accrue to investors as part of the city’s UDZ tax incentive scheme. “It does not matter how big or small your property is, because you are eligible for major tax deductions if it is within the UDZ boundaries. In order to qualify, the investor has to restore, refurbish or add onto income generating property within the UDZ, or demolish old buildings and build new structures in their place, or purchase new or refurbished buildings or units,” explains Naidoo. An investor will qualify for a 100% tax deduction spread several years, depending on whether the investor has refurbished an existing structure or constructed a new building, but it is not the only benefi t. The Joburg UDZ is about 1 800 hectares and includes the core of the inner city (from Fordsburg to Jeppestown) and from Belleview to the M2 in the south. It also extebndes to Newtown, Hillbrow, Braamfontein, Yeoville, Troyville, Doornfontein, Ellis Park, Bertrams, Ferreirasdorp, Selby, Wolhuter, Vrededorp, Marshalltown, City and Suburban, Fairview and Benrose. SOUTH AFRICAN BUSINESS 2016 168
Join the 2nd Gold Rush!! The City of Joburg equates the UDZ’s investment resurgence to the 2nd Gold Rush into the “Heart of the City of Gold”. The City therefore invites domestic and international investors; traditional property investors, new entrants, women and the youth to join the “2nd Gold Rush” into the “Heart of the City of Gold” and contribute to Joburg’s Inner City revitalization and benefit from the UDZ tax incentive. UDZ is available to income tax paying property investors who invest in construction or refurbishment of income-earning buildings located in the Inner City of Joburg. It comes in the form of accelerated depreciation on investment made towards construction or renovation of Inner City building. For clarity and technical information, contact: Lebo Ramoreboli Deputy Director: UDZ tax incentive Phone: +27 11 358 3437 Email: lebor@joburg.org.za www.joburg.org.za/udz
