DEPUTY MINISTER GODLIMPI REAFFIRMS GOVERNMENT’S COMMITMENT TO EXPANDING SOUTH AFRICA’S GLOBAL BUSINESS SERVICES SECTOR

DURBAN – Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi, has reaffirmed government’s unwavering commitment to expanding South Africa’s Global Business Services (GBS) sector, describing it as a key driver of inclusive growth, job creation, and digital transformation.

Speaking at the annual Business Process Enabling South Africa (BPESA) Global Business Services Conference and Awards held at the Inkosi Albert Luthuli International Convention Centre in Durban, KwaZulu-Natal, Godlimpi lauded the collaboration between government, business, and youth as central to building a future-oriented economy.

“This conference is more than an annual meeting. It is a testament to what can be achieved when government, business, and young South Africans share a common vision — a vision of growth, jobs, and transformation in a changing world,” he said.

The event brought together industry leaders, investors, and policymakers to celebrate excellence, innovation, and partnership in one of the country’s most dynamic and globally competitive sectors.

Highlighting the strong performance of the GBS industry, Godlimpi revealed that between 2010 and March 2025, the sector had created nearly 174,000 new jobs and generated over US$2.7 billion in export revenue.

“Behind these numbers are young people whose lives have been transformed — graduates, data analysts, programmers, and service professionals now participating in the global digital economy from our cities and townships,” he added.

Godlimpi underscored the central role of the GBS Incentive Programme, administered by the Department of Trade, Industry and Competition (the dtic), in attracting investment and stimulating employment. To date, over R808 million has been disbursed to qualifying firms in the 2024/25 financial year, with plans to secure R10 billion in additional funding over the next decade.

He also announced that government is exploring a transition from a cash-based incentive model to a tax-based framework to improve sustainability and bolster investor confidence.

“We have requested that the GBS Incentive be listed under the 11th Schedule of the Income Tax Act, allowing beneficiaries to recover taxes paid on incentive receipts. This measure will further strengthen investor confidence,” Godlimpi explained.

The Deputy Minister highlighted the renewed eight-year partnership between the dtic, BPESA, and Harambee Youth Accelerator as a model for effective collaboration, supporting the implementation of the GBS Masterplan and long-term skills development across the country.

He further called for diversification within the sector, urging firms to expand beyond traditional contact centres into digital services, data analytics, and cloud engineering, while also broadening operations to smaller towns to promote inclusive growth.

“The next phase of growth must ensure that young people in smaller towns also benefit from this expanding sector. This will not only strengthen resilience but also contribute to inclusive growth — the central pillar of our national economic policy,” he said.

In closing, Godlimpi encouraged continued collaboration among industry stakeholders to position South Africa as a premier destination for global business services and digital innovation.

“The GBS sector is not just about answering calls or processing transactions. It is about connecting South Africa to the world, translating our talent into trade, and turning digital opportunity into human prosperity,” he concluded.

The conference reaffirmed South Africa’s position as one of the leading GBS destinations in the world — a nation where youth talent, digital innovation, and strategic partnerships continue to shape a more inclusive and globally connected future.