MEDIA STATEMENT - Minister Chairs GBS Executive Oversight Committee to Address Sector Growth and Sustainability
- March 12, 2025
The Minister of Trade, Industry, and Competition, Mr Parks Tau, convened the latest meeting of the Global Business Services (GBS) Executive Oversight Committee (EOC) to discuss the sector’s strategic growth, key challenges, and government support mechanisms. Held on 10 March, the meeting brought together industry leaders, representatives from the Department of Trade, Industry, and Competition (the dtic), and key stakeholders from the GBS sector.
Chaired by the Minister, the EOC leads the implementation of Masterplans, serving as a collaborative platform between the government and industry. With specific reference to GBS, the objective is ensuring alignment on policies and initiatives aimed at bolstering South Africa’s position as a global leader in outsourcing services.
The meeting, held against the backdrop of strong sectoral growth, focused on immediate challenges such as the disbursement of government incentives and long-term strategies to enhance competitiveness. Minister’s Commitment to Industry Growth The Minister reaffirmed the government’s commitment to the sector’s expansion, highlighting its role in job creation and economic development. The GBS sector has continued to grow at an accelerated pace, exceeding initial projections and contributing significantly to employment, particularly for youth and women.
“The GBS sector is one of South Africa’s key economic drivers, offering substantial opportunities for investment, skills development, and employment. As a government, we remain dedicated to ensuring its sustainability through strategic policy support, funding mechanisms, and collaborative efforts with industry leaders,” the Minister stated.
Addressing Funding and Incentive Disbursements
A critical issue discussed during the EOC meeting was the backlog in incentive disbursements, which has impacted sector operations. The DTIC leadership acknowledged the concerns raised by industry representatives and announced immediate measures to address outstanding claims.
“The GBS sector has done a great job in meeting the objectives of the GBS Masterplan, amid several challenges ,including an increasingly competitive global environment, along with issues such as currency volatility, geopolitical concerns and the impact of AI so we are looking to the dtic for support in helping position South Africa as an attractive investment destination. Certainty around incentive payouts and clarity around future incentive packages is critical,’’ said BPESA CEO Reshni Singh.
“We recognise the importance of timely incentive payments to sustain investor confidence and operational stability. The government has taken decisive steps to redirect funds and streamline the claims process. We are committed to ensuring transparency and accountability in these disbursements,” said Minister Tau.
Sector Growth and Strategic Priorities
Beyond immediate financial concerns, the EOC also discussed long-term strategies to maintain South Africa’s competitive edge in the global outsourcing market. Key priorities include:
• Expanding operations in Tier 2 and Tier 3 cities, creating opportunities in townships and previously underserved communities
• Investing in digital skills and AI-readiness to ensure the workforce remains adaptable to industry advancements
• Enhancing infrastructure and connectivity to support business operations, particularly in secondary locations
• Exploring alternative funding mechanisms, including potential partnerships with the Unemployment Insurance Fund (UIF) and other government-backed initiatives to sustain sector growth.
Industry Response and Next Steps
Industry representatives welcomed the government’s commitment to resolving funding challenges and emphasised the sector’s dedication to job creation. The discussion underscored the need for continued collaboration to ensure the sector’s sustainability.
“The clarity provided today regarding incentive disbursements is crucial for business planning. We appreciate the government’s efforts to address our concerns and look forward to ongoing engagement to drive the sector’s future growth,” said BPESA CEO Reshni Singh.
The Minister concluded the meeting by announcing that another EOC session would be convened in the coming months to review progress and refine strategies for sectoral advancement. The government and industry remain aligned in their goal of achieving the ambitious job creation targets set under the GBS Master Plan.
