Investment incentives for IB/IGB companies
Accredited IB/IGB companies will be eligible to existing government incentives with regards to tax, procurement, marketing and trade, financing, technical assistance and other support. To this end IB/IGB will be referred to as a specific business line under the various government programs.
Of particular interest is targeting IB/IGB in smart tax incentives that do not jeopardize the government’s revenue basis but actually increase taxes.
Similarly, innovative procurement incentives for IB/IGB firms delivering better results and actually cheaper than government services van be a very powerful instrument for creating more social and environmental results through contracting the more suitable private sector interventions. For example, government bodies could commit purchasing X% of their school feeding or learning equipment programs, Y% of their health subsidies, Z% of the environmental services (e.g. waste recycling or for biodiversity), V% of their water and sanitation or U% of their decentralized rural electrification infrastructure programs through accredited IB/IGB firms.
The further identification of investment incentives for accredited IB/IGB companies will be done starting January 2025 (after the new government is in place). Of particular importance is to set the right criteria for targeting IB/IGB in such incentives (beyond being accredited) and to influence decision makers at the operational level to actually to what implementation rules are guiding.
Championing change: The development of incentives will be done in close cooperation with AGI and other business associations as well as government agencies esp. under the Ministry of Finance and Economic Planning.